Mercedes Schneider reports the story of a charter school founder in New Mexico who milked his schools for millions of dollars. He got away with it for fifteen years!
No one cared. Even when the State Auditir reported the malfeasance to the New Mexico Public Education Department, no one cared.
The FBI cared.
In October, the charter founder pleaded guilty to 15 years of defrauding the schools for his personal benefit.
“ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI announced today that David Scott Glasrud, the former administrator of Southwest Learning Centers in Albuquerque, N.M., has pleaded guilty to federal theft, fraud and false statement charges arising out of a 15-year scheme to defraud millions of dollars from the group of public charter schools he founded.
“During this morning’s proceedings, Glasrud, 50, entered a guilty plea to a nine-count felony information charging him with two counts of theft from programs receiving federal funds, three counts of wire fraud, two counts of mail fraud, and two counts of making false statements. Glasrud entered the guilty plea under an agreement that recommends a term of imprisonment within the range of 48 to 63 months. Glasrud also will be required to pay restitution in an amount to be determined by the court.
“According to the felony information, Glasrud established the public charter school Southwest Secondary Learning Center in Albuquerque in Dec. 1999, and later established three other public charter schools in Albuquerque: Southwest Primary Learning Center, Southwest Intermediate Learning Center, and Southwest Aeronautics, Mathematics & Science Academy. The four schools collectively are known as the Southwest Learning Center Schools (Charter Schools) and operate with public funds, including federal funds.
“Glasrud served as the Head Administrator for, and exercised financial oversight over, the Charter Schools until Aug. 2014. As the Head Administrator and an employee of the Charter Schools, Glasrud had a duty to use his best efforts on behalf of the Charter Schools in all matters of trust and confidence, and not to act for his own benefit at the expense of the Charter Schools. In his plea agreement, Glasrud admitted violating this duty of trust repeatedly over the course of 15 years by engaging in an ongoing series of schemes to defraud the Charter Schools for his personal benefit. Glasrud also acknowledged making false statements to FBI Special Agents who were investigating his criminal conduct.
“The felony information alleges, and Glasrud has admitted, that from Nov. 2000, Glasrud was doing business in his personal capacity as Southwest Educational Consultants, which he incorporated as Southwest Educational Consultants, Inc. (SEC) in March 2002. Glasrud served as SEC’s registered agent, director and President, and his personal expenses were paid out of an SEC bank account. Glasrud used SEC to facilitate his schemes to defraud the Charter Schools.“
Read on to learn the many ways the founder dreamed up to steal money intended for the schools.
Diane Ravitch's blog 
A few weeks ago, when you posted one of these graft-related charter stories, I asked if anyone was compiling these stories. When I looked back at just the posts you had on this topic, I found 18 from August through December 2017. Here’s the first one for my compilation for 2018. I’ll update you in 6 months. I’m predicting 25. Anyone willing to give over/under odds?
Thanks, Greg. Will look for your compilation.
This is happening all over the country.
Here in Traverse City, Michigan we had a case of the director stealing 2.5 million and the court ruled that the school could not prove it was harmed by the theft.
This school year the school was forced to lay off teachers and cut class offerings. Even the courts can’t be trusted to met out justice.
Our Justice system isn’t JUST. There is a difference between Justice & the Law, just as there is a difference between morality and religion.
The whole charter community is just outrageous. Students are being done a great disservice. The theft of taxpayer dollars is insane.
” Law becomes justice, when it is administered with love ” – Oliver Wendell Holmes
Charles,
Just because they say so, doesn’t mean it’s true.
No school system, public or private is beyond scandal. Here is a heartbreaking story:
http://www.msn.com/en-us/news/crime/california-high-school-soccer-coach-charged-with-human-trafficking-of-teen-girls/ar-BBHKF5B?li=BBmkt5R&ocid=ientp
Okay, in order to make your story remotely relevant, please show us where the district defended this coach, denied allegations, allowed him to keep coaching and trafficking girls despite long-standing pleas from the community and authorities. If you can show us how there was no accountability or oversight here, we can talk. But according to what I’m seeing from your post, the guy has been arrested and charged and is no longer coaching. Justice done.
I just wanted to show, that scandal is no stranger to any academic setting. ALL schools, both public and non-public must screen their employees carefully, and keep constant vigilance.
One example, that fits your scenario, is the terrible situation at Penn State, with Coach Joe Paterno, and the long cover-up of the scandals there. Your example, sounds like a “template” of what occurred at Penn State.
As far as the example in the story I reported, the individual has been removed from any contact with children. He is still to face trial, and what looks like a slam-dunk for conviction. That will be justice. Sadly, justice does not return the innocence to the victims. (I speak from personal experience, I was sexually molested, when I was a child). There will never be justice for the victims, only survival.
So basically what you’re saying in a whole lot of words is that I’m right. Your linked article has absolutely nothing to do with this post. Thank you for acknowledging that.
I agree. The situations in Maryland, California, and other places where public school employees have been involved in sexual crimes, have nothing to do with financial fraud and theft in the private sector. Point taken.
You must concede that the citizens must demand accountability and proper conduct from ALL schools, whether public or private. Vigilance in all areas, from financial accountability, to sexual misconduct, must be investigated and when required, prosecuted. There is no alternative, where America’s children are involved.
Charles, using the False Equivalence fallacy? Nice try (not really). The financial waste, fraud and abuse of the entire “choice” market sector, and that’s all it is, a market sector, NOT an educational strategy, it’s complete lack of transparency and accountability to the taxpayers and parents has nothing at all to do with the discovery and removal of a sexual predator in a single school or with the PSU story.
A chunk of the stolen money was spent in Vegas casinos. The charter administrator was likely literally gambling away money meant for children. (I won’t mention what other sorts of activities are legal in Nevada that he might have engaged in.) The only safe bet is that there’s still plenty of theft going on when venture capitalists are given public funds with little or no oversight. The lack of ethics by the oligarchs on display here is worthy of the worst scorn. They’re gamblers and thieves, not glamorous like Ocean’s Eleven thieves, not cute like Dogs Playing Poker gamblers, just impertinent, doghearted kleptomaniacs.
The inevitable result of putting public money into private hands.
And if found guilty by the legal system, that charter leader will get an insignificant fine and probably no jail time. And don’t expect that charter school to close its doors or any laws to change about improving transparency even by a fraction of an inch.
Agree. Follow the money. And find out who is responsible for the oversight of public funds.
Yeah, he’ll pay back a dime on the dollar at the Max. Another example of the fleecing of taxpayer dollars at the expense of the kids.
These crimes keep happening because State and Federal Legisraiders are have more in common with criminals than they do with the public interest and they do not care where the money goes so long as it doesn’t go to public schools and so long as they get their cut.
True. What is WRONG with this country anyway? GREED? SELFISHNESS? Why do so many Americans want to destroy what is good and basic for all to flourish?
Are WE just EATING OURSELVES UP? And WHY?