ALBUQUERQUE, N.M. (KRQE) – The multi-million dollar home once belonging to a man convicted of stealing from New Mexico schools, is now for sale. But can those profits be used to cover the restitution owed to the state?

The home was transferred to David Scott Glasrud‘s wife Patricia in divorce proceedings, which began around the time the feds started looking into him. Now, that home is on the market for almost $2 million, as more than $3 million remains unpaid to the state.

“Mr. Glasrud committed one of the largest public frauds against New Mexico schools in recent memory,” said Marty Esquivel, attorney for the NM Public Schools Insurance Authority. “At the end of the day, Mr. Glasrud entered into a plea agreement and part of that plea agreement was that he would pay back three million dollars.”

Glasrud pled guilty back in 2018 of embezzling millions from a group of charter schools he ran. Half of the three million he agreed to pay back would go to Southwest Learning Centers, while the other half would go to the New Mexico Public Education Department.

“Although he went on video and he did his Mea Culpa, ‘I’m going to pay back every single penny,’ he really hasn’t paid back a thing,” said Esquivel. “At last check, it was under 20 dollars that he paid back.”

The NM Public Schools Insurance Authority is filing a civil suit to make sure those taxpayer bucks are returned. Lawyers involved with both the civil suit and ongoing federal case say those embezzled dollars likely went into assets like homes and cars that were transferred to Glasrud’s now-ex-wife Patricia — and that she should be on the hook for returning those funds, as well. Recently, the home “transferred” to Patricia in the divorce was listed for $1.8 million.

“He entered into this, so-called, collaborative divorce, in an effort to kind of save those assets,” said Esquivel. “I think there’s something incredibly dishonest about that.”

So when the home sells, will the profit be able to go towards that restitution? Esquivel says he can’t speak for Patricia’s motives for selling, but the civil suit is designed so she can’t take the profits and run.

“We don’t want a situation where she thinks she can sell the home and run off and escape the liability that we are alleging in this case,” said Esquivel. “We want to make sure that amount is paid back, that any amount of money from those ill-gotten gains are captured and this doesn’t happen again. We also really want to send a message that anyone out there that’s thinking of doing anything similar and stupid, that if this happens, you are going to go to prison and we are going to get the money back.”

KRQE News 13 reached out to Patrica Glasrud’s attorney for comment, Michael Danoff, but did not hear back. The feds believe the divorce was a way to hide their assets from being seized. Scott Glasrud is still incarcerated at the FCI Florence federal prison in Colorado and is likely to be released in late 2023.