This is a puzzling case. One of the founders of the Starshine Academy in Arizona is being sued to egregious misuse of the school’s money.

The school was closed in 2018 because of misuse of its money.

Now the founder is in court, where she is being sued to replenish the money she misused.

But there are no criminal charges for embezzling taxpayers’ money.

Ryan W. Anderson, an attorney representing the bankruptcy trustee suing McCarty, said this case is “one of the worst” cases of inappropriate use of school funds he’s seen.

“You don’t usually see allegations of misappropriation at this level,” he said. 

Bankruptcy court documents detail suspect purchases from 2016 until early 2018, which include $3,500 to a beach hotel in Hawaii and $500 to the “home of the largest quartz crystal in North America, and Master John Douglas, a spiritual healer and clairvoyant…”

This is not a fraud case, Anderson said. Instead, the suit claims McCarty inappropriately spent money for personal use while StarShine Academy plunged further into debt. 

When asked if she would pay the funds back, the defendant said the school owed her money.

I am reminded of the case in Pennsylvania where the founder of the state’s first virtual charter school was convicted of not paying taxes on millions of dollars that he embezzled and went to jail for evading taxes. But he never faced criminal charges for embezzlement.

On the other hand, the founder of a charter school in Los Angeles was convicted and sent to prison for 30 months for using her school’s funds for personal expenses.