A grand jury in Escambia County in Florida indicted Newpoint Education Partners and its vendors for fraud and other crimes. Newpoint Education Partners was created by former employees of Ohio’s controversial for-profit White Hat Management company.
“An Escambia County grand jury indicted Newpoint Education Partners and three other companies for grand theft, money laundering and aggravated white collar crime.
“Newpoint managed charter schools in Escambia County for 21st Century Academy of Pensacola. Last year, the Escambia County School Board revoked charters for Newpoint Academy and Newpoint High for grade tampering and misuse of public funds. All three Newpoint schools — Newpoint High, Newpoint Academy and Five Flags Academy — closed. The enrollment at the three schools totaled about 350 students.
“The grand jury alleges that Newpoint and its vendors fraudulently billed 21st Century Academy hundreds of thousands of dollars for supplies, equipment and services. Newpoint and its vendors allegedly laundered the proceeds of the thefts through multiple bank accounts to conceal the criminal activity.
“The source of the alleged laundered proceeds was charter school grant funds appropriated by the state for charter schools to use to procure supplies, equipment and services necessary for startup.
“I’ve prosecuted charter schools before, but not this particular type of scheme,” Assistant State Attorney Russell Edgar said. “I’ve prosecuted people involved with charter schools for committing theft of funds and prosecuted people for misusing children to work off campus during school, but this is the first time prosecuting a managing company.”
Diane Ravitch's blog 
As long as charters so not have to maintain exactly the same level of financial and policy transparency as public schools do, fraud will only continue and even increase.
In unbridled capitalism, men are never angels, which is why government was invented . . .
Kudos to Superintendent Malcolm Thomas for pursuing this fraudulent group. The initial complaint was related to fake test scores and attendance records. He shut them down and withheld the last payment due to the company until the staff was paid for days already worked. Upon further investigation, all the other financial wrongdoings were uncovered, and the case is now in the hands of the grand jury. More leaders need to be vigilant like Thomas who shut down the crooks and seeks justice for his school district.
Actually, Thomas covered up the allegations until another member of the school board took the information to the state attorney. Also, no teachers were paid at all. Still have not been paid.
Kasich has no idea what is going on with this mess in his own state.
Can we hope that his messy presidential run and sound defeat will get him out of office sooner in his own state now?
“aggravated white collar crime”, that sounds serious. I bet a guy could do some public service time for that.
Sadly, only the company was indicted — no individuals.
Newpoint also runs this school in another county. $1.5 million loan with no paperwork.
http://wfla.com/2016/03/30/charter-school-parents-in-st-petersburg-learn-of-staggering-debt-owed-to-private-consultants/
I am shocked, shocked……Waiting for a Non Sequitor response in 3-2-
Maybe they will go to jail just like they would if it were a public school. They might even have to pay some money back.
As a previous employee of Newpoint, I hope North Carolina school district opens their eyes and stops allowing NEP to open schools there. Look what has happened in Florida. In Pensacola the Director of Newpoint Academy and Newpoint Pensacola High School Mr. John Graham told us our bank account was swiped clean at the end of every month which left us with nothing to work with financially. We had terrible internet service for our technology based middle school and high school. This left our high school students unable to do class work since their whole curriculum was on line. We had no money, a dirty school, high teacher turnover, and were fed stories of how things were going to get better for four long years. From reading the newspapers from south Florida, this story of no money, high teacher turnover… repeated itself in their counties where Newpoint had schools. Now we find out, NEP is charged with grand theft, money laundering, and white collar crime in our county. NEP should have to pay Escambia County that money back. Why does the owner get away with such theft ? If you steal a blouse from a store, you get arrested and thrown in jail for it, but if you steal hundreds of thousands of dollars of tax payers Federal funds, you pay a fine and get away with it? All of these counties should tie that owner up in court with law suits for the next ten years!