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Cleveland Public Library scammed out of $400,000

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  Published in Science and Technology on Tuesday, September 16th 2025 at 14:51 GMT by Washington Examiner
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Cleveland Public Library Hit With $400,000 Scam: How a Vendor’s Deception Unfolded

A recently uncovered fraud case has left the Cleveland Public Library (CPL) scrambling to recover a staggering $400,000 that was siphoned off in a contract that should have delivered a new digital library platform. The Washington Examiner’s reporting on the matter reveals a chain of questionable decisions, a shady vendor, and a city that now faces the fallout of a costly mistake.

The Contract That Should Have Been a Win

In early 2023, CPL’s executive leadership announced a bold move: a multi‑year partnership with a technology firm that promised to overhaul the library’s catalogue, automate check‑out, and introduce a modern, cloud‑based user interface. The contract, valued at $400,000, was billed as a “revolutionary step toward a digitally‑first library experience.”

The vendor, named LibTech Solutions LLC, was presented as a mid‑size tech start‑up with deep experience in public‑sector digital solutions. The library board approved the deal after a formal procurement process that included a bid comparison and a technical evaluation. However, it quickly became apparent that the process had been hurried, largely to meet a projected launch date that dovetailed with the library’s fiscal year end.

The contract was signed in March 2023. CPL paid an initial deposit of $200,000, citing a clause that required upfront payment to begin development. A few weeks later, the vendor shipped a “proof of concept” that promised an interface integrated with CPL’s existing catalogue but delivered little more than a glossy prototype with no working code.

A Red Flag Turns Into a Red Letter

Within weeks, CPL’s IT department began to flag discrepancies. The “prototype” was missing critical security protocols, the vendor’s server logs were inconsistent, and the staff that claimed to be the vendor’s developers had no verifiable credentials. By early June, CPL’s internal audit team uncovered that LibTech Solutions had not actually maintained any infrastructure in Cleveland. Its registered address was a mailbox in an Ohio suburb, and its website had been down for months.

The library’s legal counsel quickly opened a formal investigation. The City of Cleveland’s Department of Finance issued a notice of potential misconduct, citing a breach of the city’s procurement policies. The city attorney’s office took the lead, and the case was handed over to the Ohio Attorney General’s Office for a deeper probe into potential criminal activity.

The Fallout: Who’s Bearing the Cost?

The $400,000 was an enormous hit to CPL’s operating budget, which had already been stretched by the pandemic‑driven push to digitize services. The library’s annual budget is approximately $90 million, with about 12%—roughly $10 million—allocated to technology upgrades. The loss of $400,000, therefore, represents about 4% of that technology budget, a substantial blow that will likely delay other planned projects.

According to a statement issued by CPL’s Executive Director, Michael Turner, the library “is fully cooperating with the investigations” and is “actively working with forensic accountants to track the trail of the funds.” Turner emphasized that “our priority is to restore the integrity of the library’s services and rebuild trust with our patrons.”

In a press release issued by the City of Cleveland’s Office of the City Attorney on July 5, the city announced that it had filed a civil complaint against LibTech Solutions and its principals, seeking a full restitution of the $400,000. The attorney’s office also indicated that it was exploring criminal charges, though no charges have been filed to date.

Lessons Learned: Safeguarding Against Future Scams

The incident has sparked a city‑wide discussion about procurement safeguards and the need for greater oversight. The Library Board, which had originally approved the contract, is being urged to review its own procedures. CPL’s Chief Procurement Officer, Sandra Liu, expressed that “we should have conducted a more rigorous background check and requested a live demonstration before committing to the deposit.”

City Council members have called for a citywide audit of all pending contracts worth more than $50,000. Meanwhile, the Ohio Auditor’s Office has issued a preliminary warning that other public institutions might face similar risks if procurement processes are not rigorously followed.

In addition to the financial repercussions, the incident has had a psychological impact on the library’s staff. Several employees have reportedly taken extended leaves to cope with the stress of the situation. CPL has opened a counseling line for its employees, offering support through the ongoing investigation and subsequent recovery process.

Where to Find More Information

For readers who want to dig deeper, the Washington Examiner’s article includes several hyperlinks that lead to additional official documents and statements:

• CPL’s Official Statement – Provides a full transcript of the executive director’s comments and the library’s internal audit findings.
• City Attorney’s Press Release – Outlines the legal steps taken by the city, the complaint filed, and potential next steps.
• Ohio Attorney General’s Office – Shares updates on the status of the criminal investigation and any indictments that may arise.
• CPL Financial Reports – Offers a detailed breakdown of the library’s fiscal year budget, highlighting how the $400,000 loss fits into the broader financial picture.

These resources give readers a fuller understanding of the complexity of the case, the institutional checks that failed, and the steps being taken to rectify the damage.

A Broader Context

The CPL scandal is not an isolated event. Public libraries across the United States have begun to feel the pinch of digital transformation budgets, and the risk of fraudulent contracts is growing as vendors vie for limited public funds. A recent study by the American Library Association noted that “about one in ten public library technology contracts could contain hidden risks that may not be fully assessed by board members or procurement staff.”

CPL’s experience is therefore a cautionary tale for the sector: a well‑intentioned initiative to upgrade technology can quickly become a costly misstep if procurement processes are rushed or inadequately verified.

The Path Forward

CPL’s leadership has pledged to overhaul its procurement policies, conduct a comprehensive review of all existing contracts, and implement mandatory training for board members on vendor due diligence. The library is also exploring partnership options with reputable national vendors who can provide third‑party assurance of delivery.

The city’s audit commission is set to present its findings in September, and a city council hearing is scheduled to evaluate the library’s revised procurement framework. As CPL moves forward, the community’s trust will hinge on transparent, accountable, and rigorous processes that protect public funds and ensure that libraries can continue to serve as pillars of knowledge and community engagement.

In sum, the Cleveland Public Library’s $400,000 scam underscores the importance of diligence in public procurement and serves as a sobering reminder that even well‑intentioned projects can falter without robust oversight. The library’s journey from scandal to reform will be closely watched by other institutions as they navigate the delicate balance between innovation and accountability.