Nicholas Trombetta, founder of the Pennsylvania Cyber Charter School, has been indicted by federal authorities on 11 fraud and tax charges.
Trombetta’s school is the largest cyber charter in the state and possibly the nation, with 10,000 students and annual revenues in excess of $100 million.
Prosecutors said that Trombetta had stolen nearly $1 million. He “is accused of creating entity after entity, ultimately controlling what prosecutors said was an intricate web of interlocking businesses whose purpose was to enrich himself, his sister and various associates.”
Trombetta’s attorney said he will plead not guilty.
“The indictment alleges that the former wrestling coach and school superintendent formed businesses that billed for doing no work; masked his control of a corporation by naming straw owners; hid income from the IRS; took $550,000 in kickbacks on a laptop computer contract with Virginia-based NCS Technologies Inc.; and even “caused” employees to make $40,000 in individual payments to his favored political candidates before reimbursing them through one of his companies.
Although no such charges have been filed, there is a federal statute that prohibits making campaign contributions in the name of another person, or what are referred to as “conduit political contributions.”
Prosecutors insisted they were not making any judgments about cyber charters, just about Mr. Trombetta’s financial dealings.
As we have learned from studies like the one conducted by CREDO and another by NEPC, cyber charters provide an inferior quality of education–high attrition rates, low graduation rates, low test scores.
But the money is really good for those who run the schools, so long as they don’t break the law.
Diane Ravitch's blog 
Tom Corbett (now PA governor) was the PA attorney general when investigations into this charter chain began. I’d like to hear his explanation for why the state dropped the ball on this, and why it took SIX YEARS to get some oversight and regulatory action.
“The state secretary of education is advising parents to withdraw their children from a Beaver County charter school and is urging the sponsoring school district to begin proceedings to close it.
In letters dated Jan. 4, Education Secretary Gerald L. Zahorchak said the Lincoln Park Performing Arts Charter School in Midland is not operating within the state’s charter school law and parents should begin sending their children to other schools.
Zahorchak urged the Midland Borough School District to begin proceedings to revoke Lincoln Park’s charter.
“… I am deeply concerned that the controls and oversight necessary to ensure that our children benefit, our taxpayers are protected, and our parents are informed, are not in place,” Zahorchak wrote…
The Lincoln Park charter school is part of an educational conglomerate that grew out of the Pennsylvania Cyber Charter School, established six years ago in Midland.
A grand jury sitting in Pittsburgh is investigating allegations of double billing, excessive management fees, questionable payments to building contractors and misuse of tax dollars at the cyber school. The grand jury has been investigating since October.
The Lincoln Park charter school, located in the $23.5 million Lincoln Park Performing Arts Center, opened in September but billed school districts for students attending in the 2005-06 school year, the education department alleges. The charter school has about 300 students and 200 employees.
The Department of Education alleges that Lincoln Park “is not providing enrolled students with an academic curriculum at Lincoln Park.”
Some students enrolled at the school are taking performing arts courses there but are being sent to schools in either Midland schools or the Western Beaver School District for their academic courses, Zahorchak said.
Other students enrolled at Lincoln Park are not taking any courses at the school and are being sent to Midland or Western Beaver schools for their entire education, the letter said…”
That is 2007. Corbett may be the most corrupt reformer in the country.
Ronald Reagan’s “magic of the market” at work again! That old hidden hand just can’t be kept down!
This is great news! So let’s asks the Universe to keep ’em coming. Boss Corbett is next.
“Detractors have been waiting years for Mr. Trombetta to get what they consider his comeuppance, especially after a state grand jury investigation several years ago seemed to fizzle out.”
I’d like to know why the state GJ ‘fizzled out”. Only one side presents at a GJ proceeding, the state. You mean to tell me Corbett couldn’t get an indictment when the feds found enough for 11 charges?
Investigate Corbett and then Rendell. There’s no reason PA couldn’t have stopped this years ago.
All the King’s horses……
Let’s hope other states follow.
If cyber instruction has a place, let it be under the supervision of a governmental entity. There is no reason for virtual instruction to be run under a charter system.
Personally, I think too much emphasis is placed on computers now in public schools. Children could be spending time in art and music class instead of stone cold computers.
I agree – music, like learning is analog, not digital.
Reblogged this on Transparent Christina.
If this guy is convinced in Pa, he should face several penalties.
Since some of you are interested in education corruption where-ever it is found, I thought you might be interested in this case from Seattle (district) public schools, where one person has been guilty, and further investigations are continuing on a case involving potential criminal use of $1.3 million:
http://seattletimes.com/html/localnews/2020737882_potterpleaxml.html
And here’s one where a teacher union president pleaded guilty to “looting nearly $5 million” of her member’s funds.
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/31/AR2005083101835.html?nav=rss_metro/dc
I’d never condemn all school districts or all unions because many are well run.
Some people are crooks and will exploit public funding. We do need checks and balances in public education.
“Some people are crooks and will exploit public funding. We do need checks and balances in public education”
Charter schools aren’t set up for “checks and balances” Joe. They’re run by appointed boards and each and every year charter school proponents remove more and more local control. The city of Cleveland has absolutely no say (now, after the latest round of charter lobbying) which charters set up in their city.
Can you explain why charter proponents lobbied so hard to have appointed state boards regulate charter schools? The further away the regulator is from the entity regulated the more abuse will occur. That’s an iron-clad rule in government. Why are school reformers special?
Further, I would like some explanation on why the lawyers for charter schools argue that they are PRIVATE, not public, when they are blocking unions or resisting turning over financials to regulators or taxpayers.
“Publicly-funded” is not the same as “public”. You don’t have to take my word on it. Look at any court proceeding involving a charter school. White Hat has been litigating for close to decade in Ohio on just that distinction. The charter says they are PRIVATE, but only in court. When they’re advertising they say they are “public”.
You’re telling the public you’re “public” when you want funding, yet your lawyers are arguing you’re private. Which is it? Why one posture in marketing and another in a court room? If you’re government contractors than say so, and we can have an honest debate.
Chiara – White Hat is not regarded by many (including me) as a strong example. They have had school proposals turned down. They had had schools closed.
But it is an example that has had schools closed and faced other negative consequences because of its actions. I’ve read sometimes here that schools never should be closed. I respectfully disagree – White Hat is a good example of having schools that strongly deserved to be closed.
Some people involved with charters vigorously disagree with White Hat’s efforts to do what you describe in terms of portraying themselves as public sometimes and private sometimes.
Sometimes districts are extremely corrupt – there is nothing that makes a local district more pure than a state government. I could post examples all day of district corruption (as others have posted examples of charter corruption)
Both Cincy and Cleveland some elite “district” magnet schools that have admissions tests in Ohio – charters are not allowed to have admission. Take Walnut Hills in Cincy:
http://www.walnuthillseagles.com/about-entrance-exam-information.asp
“To qualify for probationary enrollment, a student must have taken a nationally norm-referenced standardized test and have earned a national percentile ranking of 70 or above in reading and in mathematics. Only scores from grade 6 through grade 11 may be submitted for consideration. These scores must be faxed from the student’s previous school to Test Administration (fax: 513-363-0185).”
In Cleveland – which you probably know more about that I do, the district says that test scores are used to determine who gets into some schools:
http://www.cmsdnet.net/Resources/Students/~/media/Files/Resources/Student%20Registration/CMSD_UniversalApplication.ashx
APPLICATIONS FOR TRANSFER WILL BE APPROVED OR DENIED ON THE FOLLOWING BASIS:
Space: Students may not be able to transfer if the school or the grade level to which they are applying is filled to capacity.
Audition Process: Cleveland School of the Arts Lower Campus (PreK-6) and Cleveland School of the Arts Main Campus @
Harry E. Davis (6-12) only
Test Scores: Gifted Education Program: Benjamin Franklin, Garfield, OH Perry, Riverside, Wade Park and Whitney Young
GPA/Test Scores/Interview: Tremont Montessori (Grades 1-8) and John Hay Academies only
Language Screening: Buhrer Dual Language School; The International Newcomers Academy: Thomas Jefferson
HIGH SCHOOL ATHLETIC ELIGIBILITY AS RELATED TO OPEN ENROLLMENT
Long before the charter movement, there was the magnet school movement. Allowing some magnets to pick and choose kids, and requiring others to take kids in their area was one of the reasons that some educators and families supported charters.
Hope that helps.
Joe, I respectfully disagree with your characterization of White Hat charters in Ohio. It is the state’s biggest charter chain. Its owner is a major contributor to Republican politicians. He has collected nearly $1billion in public funds since 1999. His lawyers wrote the state charter law. Ten of the boards of his schools have sued him for refusing to say where the public money goes. He says White Hat is a private corporation and is under no obligation to reveal its revenues or expenditures, even to the boards of its schools. The courts have ordered him to open his books, but he said no and is appealing. White Hat charters are among the lowest performing schools in Ohio.
Diane, Pat Tornillo was a very prominent, well known union leader. He also, as this Ed Week article notes, was alleged by the AFT to have “embezzled as much as $3.35 million from the union coffers.”
http://www.edweek.org/ew/articles/2007/06/27/43tornillo_web.h26.html
However, I don’t think that he is representative of all or most teacher union leaders. I think many union leaders are highly ethical.
I’d say the same about White Hat. Yes, they are political powerful (as Tornillo was). But I would not describe White Hat as a strong charter. I’d describe it as an example of a charter that is not well respected. I’d describe it as a unfortunate example of chartering.
How would you describe White Hat? How would you describe Pat Tornillo?
The Infamous Santorum Cyber Charter May Be One Gigantic Racket
http://blogs.phillymag.com/the_philly_post/2013/08/23/infamous-santorum-cyber-charter-gigantic-racket/
Be sure to watch the video in the article in the Pittsburgh Post -Gazette article Diane linked at the top of this article to find out what Nicholas Trombetta was doing with his ill gotten loot. Remember “it’s for the children”?… riiiiight!
“Power corrupts, absolute power corrupts absolutely.”
— John Emerich Edward Dalberg Acton (1834–1902)
Maybe Chris Christie will be interested in him. Cory Booker will talk to him also.
Mr. Nathan, you’re simply wrong on White Hat. The schools haven’t been “closed”. They simply close and then re-open under a new name and with re-organized corporate board.
http://www.cleveland.com/metro/index.ssf/2013/07/policy_matters_ohio_charges_wh.html
White Hat isn’t limited to OH. They operate in 4 other states. The OH legislature just dedicated a huge subsidy to low-performing charters, a subsidy that came from defunding local public schools. Public schools got less funding, charters got more money. The state scores came out last week, as has been true for A DECADE, charters did not outperform public schools. Why are we destroying public schools to replace them with charters? Charters DON’T outperform public schools. They NEVER have.
We’re finding out that even “non profit” charters are for-profits. They set up a legal entity that is “non profit” but all school functions are outsourced to for-profit companies. The non-profit is simply a legal posture. It has nothing to do with reality. Non profit charters are for profit charters.
Reformers address none of this. They simply pretend it isn’t happening. How long can you go on denying peoples’ actual experience with “reform” in the states of OH, MI, PA, FL and AZ? This is a huge chunk of the country.
Chiara, as I work with and learn from people in each of the states you mentioned, I agree that some charters have done poorly. Some have done well, as some district public schools are doing well.
There are some great district & charter public schools serving students from low income, limited English speaking families and students of color. I define “great” as among other things, helping young people graduate, helping them earn college level credits while still in high school, helping them improve their academic skills, measured in various ways, helping them see that they can and should be active and constructive citizens. On this last point, there is a great website, http://www.whatkidscando.org
Recognizing that there are some things to learn from district and charter public schools seems to be the opposite of “ignoring people’s actual experience.”
All this just to bet rid of pensions for the staff and having to stop paying into them. Rather get the money as profit.
http://cyberschoolpa.blogspot.com/2013/12/a-rejected-letter-from-pennsylvania.html
Check this cyber school teacher out. Pure arrogance. He is not representative of the many high quality cyber school teachers in Pa. He also has a wife and daughter working at the school.