MEDINA, Ohio – The Medina school board recently went on the offensive in its ongoing battle with former Superintendent Randy Stepp over his use of district funds.

The school district and Stepp have been feuding since April, when the board rescinded his new five-year contract and placed him on paid leave, pending the outcome of a state audit into his spending of district resources.

As a result of being reprimanded, Stepp filed a lawsuit in a U.S. District Court, charging school board members with a breach of contract, defamation and invasion of privacy, reports the Medina-Gazette.

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Stepp’s suit asked that he be awarded the “full value” of his new five-year contract, which was valued at $1.2 million by the teachers union. He also asked for compensation for damages to his reputation, mental anguish and suffering, attorney fees and court costs, according to the story.

On Wednesday, the school board filed an amended counterclaim in federal court demanding more than $1 million in damages.

The original counterclaim by the district demanded that Stepp only repay an $83,000 bonus he received with his new contract.

However, the results of the state’s audit completely turned the tide in the case.

The audit found that Stepp paid off his old college loans, worth over $170,000, using district money and did not report that amount as taxable income on his W-2 form.

The payments were directed from a carryover fund maintained by the Medina County Schools’ Educational Service Center.

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And the only paperwork Stepp provided to document his debt and validate his payment, was a computer screenshot of his account with the U.S. Department of Education.

In the amended countersuit, the district is now asking for $259,132 in compensatory damages and $777,396 in punitive damages for failing to deal with the board in “good faith,” the story reports.

The compensatory damages include the $4,121 that was flagged as illegal by the auditors, the $83,000 signing bonus and the $172,000 that Stepp used to pay off his old college loans.

Following the release of the audit, the board unanimously voted to fire Stepp last week.