Ohio charter schools are very low-performing. They have also had numerous scandals.
And then there is the story of the Richard Allen Charter Schools.
The Dayton Daily News conducted an investigation and found that the charters “are still being run by a person who was sued by the state attorney general 18 months ago for her role in misspending $2.2 million in school money.”
The school leased a Maserati, two Mercedes, and a Jaguar for its leaders. Nothing but the best with public money! I mean, really, would you expect them to drive a Ford or a Toyota or a Chevy?
The investigation “also found that the schools are operating in buildings that have a bankruptcy case hanging over them, and Richard Allen has had no state financial audits released for the past three school years.”
Can you believe this?
Superintendent Michelle Thomas faces pending legal action, as does the Institute of Management and Resources (IMR), which ran the school for years and listed a leased Maserati and Jaguar in its bankruptcy filing.
Asked last week about Thomas’ role running Richard Allen schools, a state attorney general’s spokesman claimed, “The schools are no longer under Ms. Thomas’ control.”
But both the schools’ website and Ohio Department of Education documents confirm that she is the superintendent, and it was Thomas who responded to questions about the schools after a reporter visited the Talbott Tower office for the schools’ management company.
Asked about the contradiction, attorney general’s spokesman Dominic Binkley said he would have to recheck information provided by the AG’s education division that Thomas was no longer running the schools.
Ohio Senate Education Committee Chair Peggy Lehner, who has led charter school reform efforts in recent years, said state officials will investigate.
“I find this information extremely troubling, and I, along with a number of other entities within the state, will continue to look into this,” Lehner said.
Thomas declined an interview request, sending short emails instead.
“Richard Allen Schools has nothing to do with IMR,” Thomas wrote, adding, “The schools are working hard to respect its leases and to secure the property outside of the bankruptcy. The audits are proceeding and it is my understanding that they should be released soon.”
Until summer 2017, the three Richard Allen schools in Dayton and one in Hamilton were run by The Institute of Management and Resources, a company started by Thomas and her mother, Richard Allen Schools founder Jeanette Harris.
Earlier this decade, the state auditor’s office ruled that IMR misspent $2.2 million in public money running Richard Allen. The company denied wrongdoing and appealed in court, but lost in 2015.
Lingering issues
IMR filed for bankruptcy protection in March 2018. The Daily News pored through hundreds of pages of court records, state audits and school records, finding several lingering issues:
** The state attorney general’s office sued IMR, Harris, Thomas and others in late 2017, seeking to turn those $2.2 million in audit findings into collectible court judgments. The case was stayed when IMR filed for bankruptcy protection months later.
“(In addition to IMR), we also sued Jeannette Harris, her daughter Michelle Thomas, and the schools’ former treasurer (Felix O’Aku),” Binkley said. “We seek to hold those individuals strictly liable for the improper payments that resulted in the findings for recovery…
** IMR’s March 2018 bankruptcy filing says that at the time, the company was leasing four cars that were being paid for by IMR officials — a 2015 Maserati Ghibli for which Thomas is listed as co-lessee, a 2016 Mercedes C300 with deputy superintendent Aleta Benson listed as “guarantor,” and both a 2016 Jaguar XJL and a 2016 Mercedes GL 450 SUV with Harris listed as “guarantor.”.”
Ohio spends a billion dollars annually on its failing charter sector, which is now lobbying for an increase of 22% in state aid.

If Ohio had been providing adequate oversight and accountability, the mismanagement of the Allen charters would have been detected earlier. Public money must come with accountability strings attached. As someone that has written several state, local and one federal grant, I was required to account for every penny of the money. I even had a private grant one year in which the money was sent directly to the school business office. I was only able to buy materials through school purchase orders. I never handled any money myself. With a federal Title VII Grant, an independent auditor came to the district examine the books. All the right wing deregulation of the past ten years has opened the flood gates to fraudsters and cheats. Anyone receiving public dollars must accept accountability.
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The only surprise is that DDN education reporter, Jeremy Kelly, didn’t add a quote of spin from Fordham to the article.
Since the piece doesn’t identify the political party (GOP) and billionaire front (Fordham) that enables Ohio’s fleecing from school privatization, the scandal’s media exposure provides cover for those responsible at the highest policy levels.
Kelly could have asked the other Republican state legislators in the area why they tolerate no progress in recovery of funds from virtual schools that have been charged. Kelly could have identified the number of times Lehner’s comments have been similar in similar situations. He could have asked her why her accountability is so lax. But, expectations that the preceding would happen, indicate a reporter’s address book has go-to commenters who are working to save public schools.
It’s getting harder and harder to excuse Ohio newspapers while also appreciating their exposés.
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In general terms, not related to to this specific situation-
Exploitation by charter school operators is a win-win for the GOP. It’s a Republican set up to prove that government doesn’t work and, it fills GOP coffers with grifters’ money.
Billionaires drink their martinis in palaces and laugh about their cruelty while relishing their legalized tax fraud.
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Too many conservatives prefer “small government” that is unable to get between them and their many scams. An ineffective government does feed their narrative, and the grifters laugh all the way to the bank. It is all part of the great public money heist in which conservatives privatize the common good.
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Well-stated retired teacher.
It’s oligarchs commandeering assets, replicating the Russian model.
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The problem is state government is captured by ed reform lobbyists and charters are STATE schools. The governance is centralized- it comes out of Columbus.
So…if the state won’t regulate then no one regulates.
Compare to a public school system in Ohio- the state oversees regulation on state law but after that it goes down to the COUNTY level and then DISTRICT level. So public school regulation isn’t wholly reliant on the state attorney general- in fact, the person who would get the compliant on a public school is the county prosecutor.
They’re running a system of schools that are located in every county in Ohio out of Columbus- it’s a lousy governance system and it will never work. There’s no back-up- if the state fails to do their job the job just doesn’t get done.
The regulator for the school HAS to be close to the school. That’s why public school system governance was set up that way.
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The way charter laws are written, the sponsor or authorizer gets a commission on each student enrolled.
That gives them an incentive to enroll more students, to ignore inflation of enrollment, to ignore phantom students, and to not close bad charters.
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yes
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The public needs to ask why successive state attorneys general have refuse to regulate these schools. This has been going on for 20 years. They refuse to police them.
I think it’s political capture and corruption. It is unimaginable that law enforcement would ignore such blatant violations of state law if these were PUBLIC schools.
I’ve been a public school parent for 25 years. I have seen people fired for borrowing a laptop. I have seen a principal indicted, tried and jailed for stealing donated funds. She was removed and imprisoned within 3 months. The COUNTY prosecutor handled it.
Charters go YEARS before anyone does anything. ECOT robbed taxpayers for a decade.
What in the heck is going on here? Why are charters in this state immune from law enforcement actions? Who bought off whom in Columbus? It stinks to high heaven.
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Lack of rules and enforcement allows corruption which is then used as proof, by media, that government doesn’t work. It’s a GOP scheme to benefit the Koch’s/ALEC.
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Charter lobbyists wrote the Ohio charter law. That’s a fact.
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Charter lobbyists were also responsibile for the hiring of Paulo DeMaria, the State Superintendent of Education who is a long time political opearative for Republican governors.
Paulo DeMaria is a finance expert and champion of charters, vouchers, choice, and “deregulation.” He worked for Education First Consulting for six year a policy shop filled with people who are unfriendly to public schools.
While employed at Education First, and just before he became Superintendent in 2015, Paulo DeMaria was the lead author of Getting Out of the Way: Education Flexibility to Boost Innovation and Improvement, a report for the charter-loving Thomas B. Fordham Institute (June 1, 2015).
That report presented, as if virtuous, the forms of autonomy in Washington DC and Boston “reforms,” and those advocated by McKinsey and Company among others. The report noted two main obstacles to more autonomy in Ohio— ESSA requirements and teacher unions. https://edex.s3-us-west-2.amazonaws.com/publication/pdfs/FORDHAM%20Deregulation%20Report_Web%20with%20June%20date%20on%20cover_0.pdf
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It pays off for frauds and crooks to have corrupt friends in powerful positions of influence.
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