Audit reveals alleged misuse of Oklahoma school district's bond proceeds

Oklahoma Attorney General's Office

A former Tulsa Public Schools administrator allegedly orchestrated "complex financial schemes" involving $3.73 million in bond proceeds, according to a state audit, which could lead to further criminal charges.

Oklahoma State Auditor & Inspector Cindy Byrd followed up a February 2025 special audit that raised concerns about Chris Hudgins, who had been the school system's executive director of bond and energy management, with Tuesday's release of a forensic audit.   

After becoming a full-time school employee in 2015, Hudgins had direct oversight for more than $854 million in bond-funded projects, according to the latest audit. Its findings reflect fraud, misappropriation, and improper payments totaling $3.73 million, along with evidence indicating Hudgins used his position to divert millions of tax dollars to himself and direct contracts to preferred vendors, a statement from Byrd's office said.

"It appears that for more than 10 years, he operated a personal business out of TPS offices on the public's dime, undermined the bond department's competitive bidding process, and orchestrated complex financial schemes in cooperation with certain vendors," Byrd said. 

Hudgins, who left the district in February 2025, pleaded not guilty earlier this month to conspiracy, embezzlement, and kickbacks charges involving $779,000 in bond-funded projects. 

Oklahoma Attorney General Gentner Drummond, who filed the charges in June against Hudgins and two partners at an engineering firm that have also pleaded not guilty, indicated on Tuesday that additional charges are possible.     

"This audit confirms what our June charges already made clear — bond dollars meant to repair and improve Tulsa schools were instead treated as someone's personal piggy bank," he said in a statement. "My office is reviewing the full audit now, and we are not finished. Additional charges are on the table."

Hudgins' attorney did not immediately respond to a request for comment.

Byrd criticized the Tulsa Board of Education for apparently rubber-stamping almost every recommendation Hudgins made. 

"Government employees should never be allowed to exercise unilateral control over public finances," she said. "Sadly, each dollar wasted was a dollar that never reached the classroom where it was really needed."

In a statement, Tulsa Public Schools, which serves 32,450 students, welcomed the auditor's "exhaustive investigation into past wrongdoing related to fraud" and said it intends "to pursue all legal remedies to receive full restitution in this matter."

"We have cooperated fully with the state auditor and her team and heeded all guidance offered to us by law enforcement throughout this investigation, including the addition of safeguards to ensure the district has more transparency in its financial reporting protocols," Superintendent Dr. Ebony Johnson said. "Our students and our school communities deserve every dollar meant for them. We intend to fight to ensure the district is made whole and remain fully committed to supporting all relevant agencies pursuing justice in this matter."

District voters approved $414 million of bonds in 2021 and $415 million of bonds in 2015 for various capital, safety, and technology improvements. In April, voters authorized $609 million of bonds.

The school system, which had $298.6 million of general bonds outstanding as of June 30, 2025, last sold debt in July with a $57.5 million GO bond issue rated AA by S&P Global Ratings.