On Friday 22 November 2013, Jean Illingworth faced Cairns Magistrates Court for the first day of a four-day committal hearing into an alleged $9 million fraud.
Ms Illingworth, 66-year-old, denies any wrong-doing.
She faces two charges each of fraud and perverting the course of justice.
In outlining the case against Ms Illingworth, prosecutor Michael Cowan alleged she enrolled a number of children who never attended classes.
He said this included teenagers who were in prison or employed and others who were either too young or too old.
Teenagers who had been expelled and "chronic truants" were also kept on the roster, he said.
The school received $20,000 in state and federal funding for each student.
Mr Cowan said there was an enrolment drive across Cape York where children were enrolled but didn't show up at the school.
Mr Cowan said the school was running at an unsustainable level and funds were used to keep it going.
Mr Cowan said it was also alleged Ms Illingworth created more false attendance rolls at home after she was stood down, (and she then) delivered (the false attendance rolls) to Cape York Partnerships accountants, who had taken over the school.
Mr Cowan said one of the charges related to a statement in a letter "allegedly" drafted by former staff member Vimal Shankaran and addressed to businessman John Benson.
Ms Illingworth was accused of having a man fly to Thursday Island with the letter to see Mr Shankaran in a bid to persuade him to sign a new statement.
Ms Illingworth's lawyer Tony Kimmins questioned lead investigator Detective Sergeant Sheridan Heaton over interviews she conducted with a key witness, a former teacher at the school.
Det Heaton says she didn't take notes during the interviews which weren't recorded, as was normal practice.
Djarragun head 'used names of prisoners', Caitlin Guilfoyle, The Australian, 23 November 2013 http://www.theaustralian.com.au/news/nation/djarragun-head-used-names-of-prisoners/story-e6frg6nf-1226766434122