A reader sent the following comment, which includes a very disturbing document. The founder of the Pennsylvania Cyber Charter School in Midland, Pennsylvania, was indicted and accused of siphoning some $8 million from the school’s accounts. The school has (still has) over 10,000 students and an annual income of $100 million. Bear in mind that virtual charters do not have the expenses of brick-and-mortar public schools: no library or librarians; no school nurse or guidance counselors; no custodians; no heating bills; no fields to maintain; etc. Yet they collect the same state tuition as if they had all the same expenses.

Here is the reader’s comment:

Speaking of cybercharters, the affidavit in the PA fed case was unsealed. It’s a good read. Trombetta boasts that he is moving into Florida. It appears to me that they intended to shut down the PA and OH operations and move to a state where there was less, ahem, HEAT.
You’ll come away wondering why it took a decade to conduct even a cursory review of the financial transactions, or why there was no action by the state of PA.
They wiretapped phones, so there’s a lot of dialogue.
My favorite part is where the digital learning pioneer tells one of his criminal associates he can no longer accept bags of cash in the Pizza Hut parking lot.

http://ae3b703522cf9ac6c40a-32964bea949fe02d45161cf7095bfea9.r89.cf2.rackcdn.com/2013/261/187/affidavit-unsealed-in-the-nick-trombetta-criminal-investigation.pdf