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U.S. PROBE TARGETS DIVERSION OF $1.9 MILLION IN AID

House lawmakers are demanding that Education Department officials explain how $1.9 million meant for children who live on Indian reservations and military bases apparently was diverted to buy a Maryland house, a Cadillac and other items.

In a civil complaint filed in July, the Justice Department alleges that $1.9 million intended for two school districts in South Dakota was diverted on March 31 into two bank accounts in Upper Marlboro, Md., and was used to pay $46,900 for a Cadillac Escalade, more than $50,000 for a Lincoln Navigator and $135,000 for a house in Maryland.

The document says the rest was diverted into other bank accounts.

The complaint did not allege that Education Department employees were involved in the theft.

Education Department officials said Monday they could not comment on ongoing cases, but department investigators were expected to testify today before the House Education and Workforce Committee about auditing problems at the department.

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