Cybercharters, aka virtual charters, are the big moneymakers with the worst results, yet states are slow to regulate them or prohibit them from opening. They collect full tuition but don’t provide the services that brick-and-mortar schools do. In state after state, they are low-performing yet never held accountable. The only online charter that collapsed was ECOT in Ohio because the owner decided to pull the plug rather than pay the state for inflated enrollments and ghost students.

Tom Ultican writes here about a relatively new virtual charter chain that is raking in big bucks. It is called EPIC. It started in Oklahoma, branched out into California, and hopes to open in Arkansas.

He writes:

Ben Harris and David Chaney, two long time friends from Oklahoma City, founded Epic.

In 1999, One year after Harris was awarded a Master of Public Administration from Syracuse University, he and Chaney founded Advanced Academics Inc.Today Pearson Corporation the large British testing and publishing company owns Advanced Academics which sells credit recovery courses and software for virtual classes.

Both Harris and Chaney went to work for Jeb Bush in 2003 at the Florida Department of Children and Families. Harris was soon made the Deputy Secretary in charge of technology. He worked under Secretary Jerry Regier who had previously run health and human services in Oklahoma. It was here that Harris made a name for himself by privatizing the child welfare system

In 2009 – just prior to founding Epic – Harris was Chief Financial Officer of Velocity Sports Performance in Irvine, California. The CEO of Velocity Sports Performance when Harris arrived there was Troy Medley, who is now Chairman of the Board for Epic in California.

Epic Found a Way into Orange County, California

Epic is an acronym for excellence, performance, innovation and citizenship. In California the non-profit business name is Next Generation Education. In Oklahoma the non-profit business name is Community Strategies Inc. Neither Epic founder, David Chaney nor Ben Harris, sits on the board of either Next Generation Education in California or Community Strategies Inc. in Oklahoma.

Rather, David Chaney serves as both superintendent of the nonprofit Epic Charter Schools and CEO of Epic Youth Services, a for-profit company that manages the school for a fee. Chaney owns the for-profit corporation, which originally had Harris’s home address listed on the incorporating papers.

Follow this sad story and you will soon realize that EPIC is a business. It sells schooling.

This Byzantine structure hides the fact that Epic is a for profit business cloaked in non-profit suit, thus skirting California’s prohibition against for profit charters. It also means that in their tax forms, the non-profit only reports costs and no salaries. For example, in the fiscal year ending June 30, 2017 Community Strategies Inc. the Oklahoma non-profit reported revenues of $41,487,230 and expenditures of $40,105,203. However, the non-profit reported no salaries because the for-profit does payroll. There is no way for taxpayers to see how many public dollars are going into private hands.

Ultican describes how EPIC won a charter in Orange County, California, despite the strong staff recommendation against doing so. The board in Orange County was funded by Billionaire privatizers.

All but one board member who voted to give Epic a charter received large campaign support from billionaires through three independent expenditure committees; California Charter Schools Association Advocates, Orange County Charter Advocates for Great Schools (which is sponsored by CCSAA) and the Lincoln Club of Orange County. David Boyd, Chancellor of The Taft University System, did not receive documented largess from the billionaires but his campaign did have odd financial support. He loaned  his own campaign $72,000, got a $50,000 loan from Taft University and a $25,000 loan from Elizabeth Dorn’s campaign. More than $30,000 in loan debt was later forgiven.

In 2016, the Beverly Hills Billionaire, Howard Ahmanson Jr. (state major donor ID 479163) gave the OC Charter PAC $10,000 and the Local Liberty PAC (State ID 1291528) that Ahmanson finances provided them another $18,171.83.

Howard Ahmanson’s name sake father established the Ahmanson Family Foundation in 1952. Today, that foundation has slightly more than a billion dollars in assets. They give extensively to the arts and LA basin charter schools. In 2016, they gave $500,000 to the billionaire funded pro-school privatization youth group Teach For America. Howard runs the Fieldstad and Company arm of the Ahmanson foundation.

Roberta Ahmanson, Howard’s wife, is a serious Christian thinker and writer. She gave a speech titled “What Fundamentalism Gave Me” at the 2018 commencement for Cornerstone University in Grand Rapids, Michigan. Like Betsy DeVos, she is part of The Gathering. Roberta and her husband see Epic as a tool that benefits the Christian home schooling movement.

Is this what education is about? Money. Profits. Connections.