INDIANAPOLIS – It’s official: the Indiana State Teachers Association swindled dozens of schools out of about $13 million through its now defunct insurance arm – ISTA Trust Insurance.

Indiana Secretary of State Connie Lawson Tuesday announced details of a settlement between the ISTA, its parent union the National Education Association, 27 school districts across the state that were owed about $27 million when ISTA Trust collapsed from mismanagement in 2009, the Associated Press reports.

The proposed settlement is for only $14 million, which means the union effectively stole $13 million from the districts. All of the affected school districts must sign off to seal the deal, according to media reports.

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In 2009, the state of Indiana sued ISTA Trust and both the state and national teachers unions on behalf of the schools, exposing the shady tactics ISTA officials used to sell their plans through court proceedings. Teachers union watchdog Mike Antonucci first reported on the proposed settlement in August, but Lawson’s announcement this week apparently makes it official.

“ISTA was blatantly covering up their Ponzi-like scheme through falsified account statements,” Lawson previously said, according to Antonucci.

“Repeatedly doctoring account statements to create the illusion that investment funds exist after they’ve been misappropriated is shameful. I hope this case will serve as a warning to others who think they can take advantage of their investors and as a reminder to investors to keep a vigilant eye on their investments. I further believe that ISTA and the NEA have the moral obligation to repay the full amount of losses suffered by these schools,” she said.

The $14 million settlement likely will come from the National Education Association, as the ISTA is millions in debt and remains under NEA adminstratorship, Antonucci writes.

That means the money will ultimately come from union dues-paying teachers across the country – probably some of the same teachers who were conned by the union in the first place.

The settlement is obviously a very good deal for the union because it shaves off half of its financial responsibility.

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Hoosier schools may have been taken for a ride by the ISTA, but the lesson they learned from the ordeal likely is worth more than the millions they lost: teachers unions are self-interested organizations that lie to, cheat, and steal from their own members in pursuit of power and money.

That’s the sad reality of organized labor.

Despite the raw deal, swindled school districts finally can put this four-year financial nightmare behind them and refocus on far more important matters.