Investigation into possible fraud and embezzlement at Sandusky Community Schools has culminated in the arrest and arraignment of the district’s former maintenance director.
Duane Lee Paehlig, age 60, was arraigned in Sanilac County’s 73A District Court on Thursday, May 28, standing mute to three felony charges. He faces one count of embezzlement of $20,000 or more by an agent or trustee; one count of malicious destruction of a building between $1,000 and $20,000; and one count of forgery. He was ordered to be held on a $100,000 bond, cash or surety.
Paehlig, who resigned from his position with Sandusky Community Schools suddenly in October 2025, was the subject of two search warrants later that same month. Sandusky Police executed a search warrant on Thursday, October 23, 2025, with assistance by the Michigan State Police, at a residence on Sandusky’s Golf View Drive.
A second search warrant was later executed at the same address about a week later on Wednesday, October 29, 2025. Both searches led to the recovery of property belonging to Sandusky Community Schools, but at the time, no arrests were made.
Paehlig will appear in court again in two weeks for his probable cause conference on Tuesday, June 9, at 10 a.m.
If convicted, he could face up to 5 years in prison for the malicious destruction of property, up to 14 years in prison for the forgery count, and up to 10 years in prison for the embezzlement charge, as well as associated restitution, fees and fines.
