It has taken nearly 20 years, and cost Ohio taxpayers $1 billion or more, but the Electronic Classroom of Tomorrow (ECOT) died in court this week.
The owner William Lager became a millionaire many times over, supplying goods and services to his corporation.
The “school” had a high attrition rate and the highest dropout rate of any high school in the nation, but it was protected by politicians who received campaign contributions from Lager. The contributions were piffle compared to Lager’s profits.
After embarrassing stories, the ECOT authorizer withdrew its sponsorship. The state, after years of ignoring the horrible performance of ECOT and its huge profits, eventually got around to auditing it and found many phantom students and asked ECOT for an accounting. ECOT insisted that when students turn on their computer, they were learning even if they didn’t participate in activities.
ECOT attorneys argued that the state illegally changed the rules on how to count students in the middle of a school year, and that state law did not require students to participate in class work in order to be counted for funding purposes.
Perhaps foreshadowing the final decision, as attorney Marion Little’s argued before the court in February that the Electronic Classroom of Tomorrow should get full funding for students even if they do no work, Chief Justice O’Connor interjected, “How is that not absurd?”
After a long battle in court, the Supreme Court voted 4-2 to support the state in its decision to force ECOT to pay back money for students who never received instruction.
Since opening the school in 2000, Lager went from financial distress to a millionaire, with his for-profit companies, IQ Innovations and Altair Learning Management, collecting about $200 million in state funding for work done on behalf of ECOT. At its peak, the school was graduating more than 2,000 students annually, but also had the highest dropout rate in the state.
Lager and his associates also donated $2.5 million to Ohio politicians and political parties, the vast majority to Republicans, with the ECOT scandal boiling into a major issue ahead of the Nov. 6 election featuring the gubernatorial race between DeWine and Democrat Richard Cordray.
Be it noted that Secretary of Education Betsy DeVos is a huge fan of online charter schools and was an investor in K12 Inc., which is listed on the New York Stock Exchange.
Farewell, ECOT. You won’t be missed. Besides, K12 Inc. and other e-schools are rushing in to Ohio to grab your market share.

Ding dong! The grift is dead. Which old grift? The wicked grift! Ding dong, the wicked grift is dead!
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Not so fast, GregB. Are Lager and the bought politicians behind bars not being released until they pay back the state of Ohio?
No! Then I would be singing like the fat lady quite yet.
Not to mention the others who will follow in Lager’s footsteps and siphon off more public school dollars while doing a disgustingly horrible and unethical job of providing a good teaching and learning environment for the students who need it the most.
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“Then I wouldn’t be. . . ” Ay ay ay! Mi culpa.
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You are correct, just a bit of playfulness to start my day!
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Now to get rid of the slimy politicians who looked the other way in order to line their pockets with campaign funds. I would say that any politician who accepted a campaign contribution from Lager should be charged with money laundering. Those were tax payer dollars that ended up back in the hands of politicians for personal/political use. Money laundering….plain and simple….LOCK THEM UP!
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Going forward- how much in campaign contributions are the current for-profit schools giving to the Republican politicians.
Forbidding “public” schools from spending taxpayer money and school personnel time for advertising while allowing “public” for-profits to spend heavily for advertising, shows the huge comfort level that Republicans have with hypocrisy.
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Those who have contact with Linda Darling-Hammond should ask her to influence Susan Sandler. Both serve on the Learning Policy Institute board. Sandler is on the Center for American Progress board along with Jonathan Lavine, the co-partner of Bain Capital (“Bain Capital Spending Big on Charter Schools” -Huffpo 2017). CAP’s education recommendation in March, “states should authorize charter schools”.
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If the Silver Lake hedge funder, Glenn Hutchins, is on the board of CAP, the article at Naked Capitalism posted 4/15/2016, “How CalPERS was taken by private equity firm Silver Lake….” provides interesting reading. CAP, portrayed as the “liberal voice” takes on new meaning.
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How about asking Linda why she sits in CA promoting the K-12, inc online academy CAVA and Fuel Ed classes for online classes in many high schools.
BTW K-12, Inc. or LRN only gained 16 cents a share.
Who’s floating this company and profiting by other means than obvious stock earnings. Perhaps data?
https://finance.yahoo.com/news/k12-fiscal-4q-earnings-snapshot-234747581.html
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Sandler Foundation is major funder of LDH learning Policy Institute
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Adding- the usual suspects fund Learning Policy Institute i.e. Nellie Mae and Chan Zuckerberg.
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That restrains the voice of one of our great scholars.
No one restrains me because I don’t rely on anyone else’s funding. And, being 80, I’m fearless.
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Fearless does not begin to capture all of the qualities in a person I admire as much as you, Diane.
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Maybe the word is “heedless”
When you reach my age and all ambition is gone, you say what you believe and let the chips fall where they may
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Go Diane. Being 80 is freeing. You are terrific. Thank you.
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Diane, ECOT is “off loading assets” to a bunch of other ed reform commercial contractors:
“By June of this year, White Hat’s once prolific presence in Ohio had shriveled to a single online school — Ohio Distance and Electronic Learning Academy (OHDELA) — and 10 “Life Skills” centers, which deliver computer-based GED courses to academically faltering teens and young adults.
Virginia-based Accel Schools, which is amassing an education empire the likes of which hasn’t been seen since White Hat dominated the Ohio landscape, has bought out the contract for OHDELA.
Utah-based Fusion Education Group (FusionED) is taking over contracts for seven of the Life Skills centers, including the North Akron branch in a Chapel Hill storefront at 1458 Brittain Road.
Life Skills Northeast Ohio on Larchmere Boulevard in Cleveland has hired Oakmont Education LLC, a company associated with Cambridge Education Group. White Hat could find no buyer for the last two centers, which will close at 4600 Carnegie Ave. in Cleveland and 3405 Market St. in Youngstown.
Information on White Hat’s off-loading of assets came via the schools’ sponsors: the Ohio Council of Community Schools, which oversaw OHDELA and two Life Skills schools, and St. Aloysius Orphanage, a Cincinnati social service provider. ”
This is what privatization looks like. These schools are 100% taxpayer-funded yet they’re being bought and sold by private entities.
All they’re doing is replacing one garbage contractor with others.
Ohio needs to clean house of state-level politicians and get some new people in there.
This situation will not improve until we break the stranglehold these contractors and their lobbyists have on state government.
Old wine, new bottles.
https://www.ohio.com/akron/news/local/schools-out-for-white-hat-david-brennans-pioneering-for-profit-company-exits-ohio-charter-scene
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Thanks for the link. The charter industry in Ohio is still corrupt.
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Boy, what a gift education reformers have given us!
Now private parties can “amass empires” that consist of assets the public paid for.
Every dime that went into ECOT came from the public. We purchased an empire for Lager and now we’re going to purchase an empire for Accel schools and whatever the contractor is out of Utah.
This is a rip-off. These companies are amassing “assets” that YOU in the public paid for. You paid for it, but you don’t own it- they do. They’re lining their pockets with money that was intended to go to public education.
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No different than when White Hat walked away with all the furniture & computers taxpayers bought, & Ohio Supreme Court in 2005 split decision said that was OK, state had their own lawyers & agreed to it in the contract. One of the dissenting judges said the contract was unenforceable because White Hat didn’t perform & was committing fraudulent conversion…
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I recall that a charter lobbyist, maybe White Hat, wrote Ohio’s charter law.
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Ohio needs a complete revamping of the state education establishment.
All the ed reformers need to go, along with all their benefactors and lobbyists.
Clean house. If we wait another two decades it will be too late and we’ll have a garbage, privatized slapped-together network of private contractors.
This is NOT “quality”. It’s crap.
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I just went to an open house at my son’s high school. Two of his teachers now ban Chromebooks and cell phones in their classrooms. Last year it was one. She said she could not make them engage with one another in discussion with the distractions.
Ed reformers should pull back on the effort to jam ed tech product into public schools. There seems to be a revolt brewing.
Bravo to teachers for ignoring the marketing and doing what they think is best. It’s brave.
Stand up to them. Parents will back you if they trust you.
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This sentence was deleted from the article that now is posted: “Lager and his associates also donated $2.5 million to Ohio politicians and political parties, the vast majority to Republicans, with the ECOT scandal boiling into a major issue ahead of the Nov. 6 election featuring the gubernatorial race between DeWine and Democrat Richard Cordray.” I wonder why. Ohio readers might like to ask the Ohio dispatch or the reporters. http://www.dispatch.com/news/20180808/ohio-supreme-court-backs-state-action-rules-4-2-against-ecot
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Why did it take 20 years and a Billion dollars before being stopped?
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I suspect that just like so many of the other grifters and frauds that power “ed-reform”, William Lager will probably move to another state and reinvent himself with another misleading business name, and in today’s political climate, he will get away with it again for awhile.
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Will Ohio ever recover from this kind of fraudulence? Those kids have already LOST so MUCH and so has the state. Good GAWD.
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