Hayward school administrator files whistle-blower complaint

HAYWARD — A Hayward Unified administrator is suing the school district, alleging that employees and managers harassed him after he launched an internal investigation into why the district was spending an inordinate amount of money on private taxi services for special needs students.


The eight-page complaint, filed in February in Alameda County Superior Court, alleges the investigation by maintenance, operations and transportation director Steven Fallon found that “the assignments of the great majority of the special needs students to private taxi services were unnecessary and false,” costing the school district about $2 million a year.

“Mr. Fallon had experience in that particular industry and realized that the number of special needs students requiring private taxi service was grossly out of proportion with other school districts,” Fallon’s attorney Richard Rogers, of San Francisco, wrote in the complaint.

Fallon’s investigation also revealed that student complaints, from sexual assault to drunken driving, were made against some taxi drivers.

His complaint, which seeks a jury trial, also alleges that some school district employees “were engaged in bid rigging, kickbacks and misappropriation of specially designated transportation funds,” dating back to at least 2011. 

The number of special needs students assigned to taxi services was allegedly reduced from 149 to 14 before the current school year after the investigation’s findings were shared with other school district administrators,…

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