ESSD and Vendor Reach Settlement Following Major Cybercrime Incident
Excelsior Springs, Mo. (April 27, 2025) – In an alarming instance of cybercrime, the Excelsior Springs School District (ESSD) has found itself in a dire financial situation, having lost over $253,000 due to the machinations of cybercriminals. In an effort to mitigate the fallout, district officials have reached an agreement with their vendor, Kansas City Audio Visual (KCAV), to split the financial loss, as it has become apparent that the stolen funds are unlikely to be recovered.
The two parties came to a settlement following an extensive investigation that uncovered how the funds, originally intended for KCAV, were fraudulently diverted into a shell company owned by a Texas resident. This money was then quickly laundered through cryptocurrency transactions, leading to a complete loss. Unfortunately, neither the district’s insurance policy nor law enforcement agencies managed to recover any portion of the stolen funds.
The theft had remained undisclosed for over three years until recently, when Excelsior Springs Police Chief Gregory Dull announced the identification of the perpetrator. Deann Kay Strong, a 41-year-old resident of Corpus Christi, Texas, now faces felony theft charges exceeding $25,000 in the Clay County Circuit Court.
Chief Dull recognized the diligent work of Detective Jeff Kaiser, who meticulously untangled the intricate scheme that drained over a quarter of a million dollars from the school district. His investigation spanned nearly three years, involving interviews with employees from multiple institutions, including BREX and LendingClub Bank, as well as KCAV. Kaiser pieced together a complex web of wire transfers, forged documents, and cryptocurrency laundering. He issued subpoenas and collaborated with the Clay County Prosecutor’s Office to build a case substantial enough to initiate charges against Strong.
Authorities were taken aback to discover that Strong had been arrested in Texas, where a judge released her on a $500 bond while awaiting future proceedings.
The Theft’s Genesis: A Deceptive Email
The fraudulent scheme originated quietly on January 31, 2022, when an accountant within ESSD received an email that appeared to be from KCAV’s Chief Financial Officer. The email instructed the accountant to redirect future payments to a new banking account at LendingClub Bank, citing changes in company payment procedures.
Impressively crafted, the email featured genuine-looking KCAV branding, included well-known representatives in the CC line, and had attachments that claimed to provide essential documentation regarding the changes and banking credentials.
On February 14, 2022, trusting the legitimacy of the request, the ESSD accountant wired $253,692 to the provided account, believing she was fulfilling a normal payment obligation. The ruse began to unravel eight days later when a KCAV sales representative contacted ESSD to arrange a pickup for the payment, only to discover the truth: the funds had been misappropriated by a fraudster.
The Ingenious Fraud: Deceptive Operations
At the heart of the operation was Deann K. Strong, who had set up a bank account under a fictitious business entity, DKs Global Services LLC, with Brex Financial Services—an entity devoid of legitimate business activities. Within a day of receiving the wire transfer from ESSD, Strong funneled the $253,000 from her Brex account to her personal account at Prosperity Bank. Subsequently, she converted $233,000 into cryptocurrency via an exchange called West Realm Shires, also known as FTX US, which itself later faced scrutiny and collapse amid fraud allegations.
Bank records indicated that Strong utilized the remaining funds to make numerous small purchases through well-known online platforms such as Amazon and PayPal. Although Prosperity Bank closed her account due to suspicious activity in May 2022, by that time, the funds had already dissipated into untraceable cryptocurrency wallets.
The Complexity of the Breach: Hacking and Forgery
The fraudulent scheme surpassed a mere phishing attempt; investigations revealed that KCAV’s email system had been compromised. Hackers infiltrated multiple accounts and set up obscure rules to divert critical financial communications into hidden folders, effectively sidelining employees from noticing pertinent emails.
Forensic investigations unveiled additional layers of deception, featuring forged communications purportedly from ESSD’s accountant. One such fraudulent email appeared convincingly legitimate but was never genuinely sent or produced by the district, indicating the hackers’ comprehensive control over specific email interactions.
The supporting documents presented to ESSD demonstrated remarkable audacity. For instance, an attachment that aimed to imitate a LendingClub Bank communication included a signature lifted from Oprah Winfrey, discovered by investigators through publicly available samples online.
“This wasn’t just a fake invoice,” an investigator commented. “It was a complete and meticulously engineered deception, designed to appear legitimate at every turn.”
The Aftermath: Recovery Challenges and Lessons Learned
Superintendent Jaret Tomlinson confirmed in police documentation that the district’s insurance provider denied their claim. The insurer contended that since the funds were willingly transferred, based on fraudulent instructions, and promptly laundered, coverage was rendered void.
Early in the investigation, the FBI was engaged, yet Excelsior Springs Police noted minimal federal assistance in recovering the stolen funds. Similarly, private investigators working on behalf of KCAV encountered comparable obstacles.
Ultimately, with the grim understanding that the money was irretrievably lost, ESSD and KCAV agreed to share the financial loss. Each organization will absorb approximately $126,800, a difficult compromise that helped avert a protracted legal battle between the two parties.
Who is Deann Kay Strong?
Background checks reveal that Strong has considerable financial instability. Born in 1983 and residing in Texas, she established DKs Global Services LLC in late 2021, misrepresenting it as a legitimate business in “custom merchandise and makeup.” However, investigators found no evidence of any genuine operations associated with the company.
Strong’s financial history displayed numerous overdrafts and small transactions, leading authorities to describe her as opportunistic in her banking behaviors—often shifting funds rapidly and exploiting the oversight gaps prevalent in online banking institutions like Brex.
While a man named Patrick Lampton was listed as the beneficiary of her Prosperity Bank account, investigators have found no links to him concerning the fraudulent activities.
A Lesson in Cybersecurity
The case involving ESSD serves as a sobering reminder of the vulnerabilities faced by public institutions as they increasingly adopt digital communications and online banking solutions. The sting of their loss is expected to linger long after the dust settles.
At a Board of Education meeting held on April 22, 2025, Superintendent Tomlinson expressed sorrow over the incident, albeit acknowledging the progress made in identifying the suspect. “We probably won’t see a penny from it,” Tomlinson stated, “but at least they might eventually have to pay the piper.”