BROKEN BOW, Neb.— The Broken Bow School Board met on Monday night for what would end up being a brief meeting. All board members were present.
$750,000 settlement in email fraud scheme approved by board
The board voted unanimously to approve a $750,000 settlement with their insurance provider, ALICAP, which resolved a dispute over insurance coverage related to an electronic payment made in 2025 as a result of an email fraud scheme.
The scheme, where an individual impersonating a construction contractor provided fraudulent ACH/EFT payment instructions to the school district, resulted in $1,882,405 being transferred to an account held by the fraudulent party.
A total of $779,420 was recovered as a result of work with law enforcement, District financial institutions, and legal counsel. The District submitted a claim under the ‘computer theft coverage’ portion of its ALICAP insurance policy (with a maximum limit of $1,000,000), which was disputed. Mediation last month resulted in the $750,000 settlement that was approved by the board, ending more than a year of efforts to resolve the claim.
Between recovered funds and the insurance settlement, just over 81% of the original loss amount have been returned. The remaining loss of just short of $353,000 will be absorbed through existing general fund reserves without additional taxpayer dollars.
“We would have preferred to recover every dollar,” said School Board President Tom Osmond. “After weighing the cost, uncertainty, and potential length of continued litigation, we believe this settlement represents a responsible resolution for the District and our taxpayers.”
The school district extended their appreciation to all who assisted with recovery efforts and the resolution of the insurance claim and reiterated their strengthening of safeguards and verification requirements following the incident.
Other items from Monday night’s board meeting
- The board approved an anticipated amended general fund budget of $13.1 million. A tax ask and budget hearing was set for September 8th at noon ahead of a board work session. The next regular board meeting will be September 21 at 5:30 PM
- Board Member Pam Holcomb, who was currently serving on the Legislative Committee for the Nebraska Association of School Boards for an appointed one year term, announced she has been approved for a four year term. She reported that regarding the state budget, a $223 million shortfall is projected for the current fiscal year and a $632 million shortfall is projected for the next fiscal year. Key topics for the group include spending caps, screen time limitations, school consolidation, and SPED program funding.
- Superintendent Darren Tobey reported to the board that the community tours he held that were attended saw about 8 to 10 people at each.
- Tobey has been asked to speak at the RTM National Superintendents Forum next month in Houston as well as the 27th Annual Blue Ribbon Schools of Excellence National Conference in Florida. Broken Bow is a finalist to be named as a Blue Ribbon School.
