A few years ago, I was alerted to the phenomenal success of an entrepreneur-lawyer in Pennsylvania named Vahan Gureghian.
With a bit of googling, I learned that he had opened a charter school in Chester County, Pennsylvania, that enrolled 2,600 students, half the district’s children. Consequently, the district was plunged into bankruptcy, unable to make its payroll, and Governor Corbett appointed an emergency manager for the district who is a devotee of vouchers.
I also learned on google that Gureghian is one of the biggest donors to Republican candidates and committees in Pennsylvania, was Governor Corbett’s largest single donor, and was named to Governor Corbett’s education transition team. As of 2012, he had given some $800,000 to candidates and political groups.
Meanwhile, Gureghian’s empire continued to expand and to produce excellent returns for him.
Here is a quote from a website (linked above) describing Pennsylvania’s biggest campaign donors, which shows what success looks like:
In 2007, Gureghian built a 30,000-square-foot, French chateau-style mansion in Gladwyne that received attention in a number of publications, including Mother Jones. The house had 10 bedrooms, 11 bathrooms, a two-lane bowling alley, wine room, media room, 200-capacity great hall, several bars and a moat, according to Mother Jones.
Last year, he paid $28.9 million for oceanfront property in Palm Beach, on which he has proposed building a 20,000-square-foot mansion, the Palm Beach Daily News reported.
In 2009, 18-year-old Kenny Forder of New Jersey posted photos of the Gladwyne mansion on his Homes of the Rich website. Gureghian’s lawyer responded with a cease and desist letter, stating that teenager had violated Gureghian’s privacy, demanding that the photos be removed and threatening a lawsuit.
The letter is posted on the Homes of the Rich website. The photos were removed.
Now, mind you, Gureghian doesn’t claim to be an educator. He runs a business that supplies all the goods and services to his charter schools. That is a very good business.
He recently expanded his charter franchise into Camden, New Jersey, where he can expect to do very well indeed. Jersey Jazzman wrote a blistering critique of Gureghian’s management company, not exactly welcoming its presence in New Jersey.
You know, you really must give these edu-entrepreneurs credit. They see opportunities where others see only educational problems. The really ingenious discovery of charter chain managers is that they can squeeze the fat out of public school operations (like expensive teachers and pensions) and make a handsome profit.
You must hand it to him: Gureghian shows how to create a business plan and strategy that works wondrously well.
His is the kind of operation that Reed Hastings must have had in mind when he told the California Charter Schools Association that he looks forward to the elimination of local school boards and to the day when 90% of children are enrolled in privately managed charter schools.
What a vivid demonstration of the rich innovation that charters produce!
Diane, this is plundering the public commons, nothing more and nothing less. The houses you mention, raider’s keeps. That all of this is done at the expense of denying children access to better educational experience, disgusting. I know it was tongue and cheek, but please do not call disgusting men like this “entrepreneurs”? Brigands, sure, rogues, absolutely … sociopaths, possibly. But, not businessmen or entrepreneurs.
Most entrepreneurs are thieves that simply understand how to manipulate and profit from the system. The myth of the savvy entrepreneur is merely an extension of the myth of the great rugged American Individual (Cowboy e.g.) and this is all propaganda used to legitimize this corrupt system.
Remember this is all being done legally which speaks volumes about the system. That system has a name- it is called capitalism. All of what is happening in the quest to completely privatize education is quite rational within this system. The fact that all of this is quite vulgar and destructive is an indictment of the system which created both big business parties who rubber stamp all of these policies.
And what, Mr. Michael, do you propose to replace capitalism with?
“The problems plaguing K12 Inc., the country’s largest publicly traded virtual charter operator, are no secret. They’ve been hit with two shareholder lawsuits, subjected to state investigations, and weathered exposes in the New York Times and the Associated Press.
But in their quarterly earnings call today, K12 reported that enrollment has grown yet again, swelling to 125,000 students — an increase of more than 5% since March of last year. Their revenue, which topped $235 million, actually exceeded analysts’ estimates, as did their operating margins. Net income was $15.9 million.
Enrollment is what matters to the company and its shareholders: each student that signs up for K12’s online schools comes with public funding attached, and as long as enrollment grows, revenue likely will, too.
Though enrollment is growing, as many as 50% of K12’s students drop out within a year, according to Gary Miron, a researcher with the National Education Policy Center at the University of Colorado. Because funding is allocated on a yearly basis in most states, however, Miron says that doesn’t matter much to K12’s bottom line.
“It doesn’t really hurt them because if the student leaves, the money stays,” Miron said. “They can just enroll another student the next year.”
Where are the demands for closure and sanctions? Why is it okay to pay for advertising- money that never reaches “the kids”?
Jeb Bush pushes these schools. He speaks at ed reform events constantly, and is interviewed at least once a week on education. Does this never come up? How can that be?
http://www.buzzfeed.com/mollyhensleyclancy/enrollment-at-nations-largest-for-profit-charter-school-stil
Thank you, Diane. Hope your health continues to improve.
Along similar lines, I thought this article about Hobby Lobby’s dabbling in the education (or: “education”) field was fascinating as well as horrifying:
http://blogs.forward.com/sisterhood-blog/197224/hobby-lobbys-crusade-to-take-over-public-education/?
Here’s more about the charter school in question:
Chester Community Charter School investigation closes
By Dan Hardy, Inquirer Staff Writer
Posted: October 15, 2012
The Pennsylvania Department of Education has closed its investigation of the Chester Community Charter School, formally ending an inquiry that began in July 2011 and at one time focused on suspected testing irregularities at 48 school districts and charter schools across the state.
The department, in a statement issued Sept. 21, said that the investigation of Chester Community and four school districts was closed but that each would continue to be monitored. An article published Sept. 23 in The Inquirer erred in reporting that the investigation was continuing.
In a letter dated Sept. 20, Carolyn Dumaresq, the Education Department’s deputy secretary, informed the school that the investigation “did not yield clear conclusions notwithstanding the overwhelming evidence of testing irregularities.”
The investigation of Chester Community – the state’s largest charter school – centered on the results of Pennsylvania System of School Assessment tests conducted between 2009 and 2011. State officials in 2011 cited erasures on tests in which the answers were changed from wrong to right, noting that the number of incidents was statistically significant.
David Clark, the chief executive of Chester Community, said he was satisfied that the investigation had ended and stressed that the school faced no sanctions from the state as a result.
“We are pleased that the Pennsylvania Department of Education (PDE) has announced that its investigation of the results of the Pennsylvania System of School Assessments (PSSA) for 2009, 2010 and 2011 at Chester Community Charter School is now closed without any disciplinary action taken against the school,” Clark said in a statement last week.
When the investigation began in 2011, the state directed the 48 school districts and schools to look into possible irregularities. That initial examination cleared 30 districts and charter schools of wrongdoing, according to the Education Department’s Sept. 21 statement.
In four other cases, the state closed inquiries without indicating whether the parties had been cleared. The Philadelphia School District and three city charter schools are among nine cases around the state that remain under investigation.
Chester Community and four others will undergo monitoring during future tests because of the irregularities found by the state inquiry, according to Tim Eller, a spokesman for the Education Department.
State officials might still seek disciplinary measures against educators at several schools where irregularities were found, Eller said. Test scores could also be altered, which could have an impact on whether schools met state standards from 2009 through 2011.
Dumaresq’s letter to Chester Community outlined measures that the school must take to safeguard future tests. They include storing test materials in a locked location that is monitored round the clock by a security company, administering the tests to students in a room equipped with a security camera, and hiring an independent auditing firm to ensure that the school follows proper test administration requirements.
Those measures were imposed “because of information that came to light during the investigation process,” Eller said, without elaborating.
A. Bruce Crawley, a spokesman for Chester Community Charter School, declined last week to comment on the measures. Crawley emphasized that the state “did not find a pattern of inappropriate testing procedures at the school sufficient to continue what had already been a lengthy investigation.”
In an interview Sept. 21, Crawley said the school welcomed the additional security measures. “If there is a suspicion and a concern about the actual performance of the student, we want to clear that up,” he said. “If [security measures are] needed to ensure this is a program with integrity, we will do that.”
The school has consistently denied that there were any testing irregularities. In a letter to Dumaresq in February, Chester Community’s attorney, Francis J. Catania, said the school’s investigation “uncovered absolutely no evidence of testing improprieties or irregularities. . . . Our internal review reaffirmed the effectiveness and superiority of CCCS’s testing standards and security – for which you have commended CCCS in the past.”
Catania wrote that the investigation “established that . . . improvements in PSSA test scoring are the direct result of hard work, innovative educational programming and persistent preparation by the students, teachers, administrators and parents at CCCS, and not some purported nefarious conduct or ‘cheating.’ ”
Catania wrote that erasures on students’ tests could be explained by test-taking strategies the school encourages students to use.
In addition to Chester Community, the school districts that will receive monitoring are: Delaware Valley School District, Pike County; Derry Area School District, Westmoreland County; the School District of Lancaster, Lancaster County; and the School District of the City of Monessen, Westmoreland County.
The nine districts and charter schools that remain under active investigation are: the School District of Philadelphia; Imhotep Institute Charter High School, Philadelphia; Philadelphia Electrical and Technical Charter High School; Walter D. Palmer Leadership Learning Partners Charter School, Philadelphia; Harrisburg City School District, Dauphin County; Hazleton Area School District, Luzerne County; Pittsburgh School District, Allegheny County; Reading School District, Berks County; and Scranton School District, Lackawanna County.
________________________________________
Contact Dan Hardy
at 601-313-8134 or dhardy@phillynews.com, or follow on Twitter @DanInq.
http://articles.philly.com/2012-10-15/news/34449848_1_school-districts-chester-community-charter-school-school-assessments
This story is absolutely disgusting. The most disgusting part is that the legislature is so corrupt that they allow this to go on. Isn’t it pathetic that even the President of the U.S. has promoted the lifting of charter caps, etc. The charter industry has plundered urban schools and exploited poor children to the hilt. Can’t the FBI do something at least if the legislature won’t.
As was pointed out, charter management business practices are legal. Now naive can one be, Dee Dee?
http://www.mlive.com/news/bay-city/index.ssf/2014/04/steve_ingersoll_family_charged.html
I’m sure if someone begins to really dig they will find something on this crook. See, in Michigan the theft goes on and on. The legislature does nothing to stop it. Just like PA. Total corruption.
Are tax dollars meant for educating kids in one of the most impoverished school districts in Pennsylvania being used instead to build a 20,000 square foot mansion in Palm Beach?
“Owners on the record — There’s finally word about who bought 1071 N. Ocean Blvd. and the lot next door for a combined $28.9 million — the year’s second-largest Palm Beach residential purchase by a single buyer.”
Read more: http://keystonestateeducationcoalition.blogspot.com/2011/06/follow-money-contributions-by-vahan.html
Correction: The charter school that Gureghian started is in Chester, PA, in Delaware County.
Students entering his charter are tested and , believe it or not, many of them have “learning disabilities” which means they bring in even more tax dollars upon admission. Hummm!