It’s true that there are occasional stories of embezzlement or fraud in public schools, but none compares to the sheer audacity of California’A3 online charter chain. Its two cofounders—Jason Schrock and Sean McManus—concocted elaborate schemes and pocketed hundreds of millions of dollars of state funds. They both pleaded guilty and repaid hundreds of millions.
Schrock, however, will not spend a day in prison.
SAN DIEGO —
One of the two masterminds behind a massive charter school scheme that defrauded the state of California out of tens of millions of dollars was sentenced to four years in prison and ordered to pay $18.75 million in fines in San Diego Superior Court on Friday.
Jason Schrock, a co-creator of the now-defunct A3 charter school network, pleaded guilty in February to one count of conspiracy to misappropriate public funds and one count of conflict of interest. He has been on house arrest in Orange County since he was arraigned in May 2019.
Because the law requires that Schrock receive credit for the more than 750 days he has spent on house arrest, he will not spend a single day in prison.
At Schrock’s sentencing hearing, defense attorney Knut Johnson emphasized that Schrock had been wholly cooperative during the investigation, turning over hundreds of millions of dollars in assets and thousands of pages of documents to further the investigation.
It was that cooperation that kept San Diego Superior Court Judge Frederick Link from handing down a stiffer sentence, the judge said. The case centered on what has been labeled as one of the nation’s largest fraud schemes after taxpayers were fleeced out of $400 million meant for K-12 education. Due in part to the cooperation of Schrock and his co-conspirator, Sean McManus, investigators have recovered $220 million…
A yearlong investigation by the San Diego County district attorney’s office determined that Schrock and McManus and their codefendants fraudulently obtained hundreds of millions in state school dollars from 2016 to 2019 after opening a network of 19 online charter schools. Three of those schools were in San Diego County.
Prosecutors accused A3 leaders of buying children’s personal information to falsely enroll them in the schools and of providing incomplete education services while taking tens of millions of dollars for personal use. A3 leaders also manipulated enrollment figures across their schools to receive more state funding per student and manipulated school attendance reporting to get more money for time that children were not spending in A3 schools.
So far, nine defendants in the case have pleaded guilty.

“Mountain Oaks School, based in San Andreas, has joined more than 130 charter public schools and organizations throughout California in opposing Assembly Bill 1316, which, if passed, will radically change how charter schools currently operate.
AB 1316 is a reform measure aimed to fix legislative loopholes regarding a criminal case involving A3 Charter Schools, a now-defunct online-only charter school network. In February, A3 executives Sean McManus of Australia and Jason Schrock of Long Beach pleaded guilty to conspiracy in pocketing more than $50 million in public funds funneled from charter schools.”
The whole charter industry (and allied marketing and promotion industry in ed reform) lobbied AGAINST regulation even after this massive fraud was revealed.
They don’t just seek to privatize the whole public school sector- they lobby to block any regulation. They want an unregulated, for profit, K-12 system to replace the current system. Wholly ideologically driven- they knee jerk oppose any regulation of the charter school companies, exactly like every other government contractor.
http://www.calaverasenterprise.com/news/article_4ab770c2-bd9d-11eb-bf56-abca1f4652bc.html
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You won’t find a word about this newest massive fraud conviction on any ed reform site or any ed reform org.
They’re not permitted to criticize charter schools or private school vouchers. Lockstep echo chamber. If it says “charter” or “voucher” in the name the whole ed reform echo chamber cheerleads it, promotes it and enthusiastically markets it. Conversly, if it’s a public school it will be 100% negative and critical.
It’s ideological. They believe private is inherently superior to public.
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How many millions did they stash in Swiss Banks?
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The guy was on house arrest. I think that describes what I did during the first part of the Corona virus.
White collar crime is managed by house arrest. Everybody else goes to prison. Seems fair to me.
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Let me explain this to you, Roy. It’s a matter of U.S. criminal law. Obviously, serious criminal penalties apply only to black and brown people who commit crimes involving $100.00 or less. Selling single cigarettes or being a black or brown kid playing with a toy in a park are particularly egregious and can result in capital punishment. Crimes committed by white people and involving millions of dollars are simply indiscretions due to slightly overly zealous entrepreneurship. Let me know if you need any further clarification.
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The penalties for those white-color, white boy crimes generally involve slapping the wrist and being invited to play a round of golf at the judge’s country club.
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Yikes, I meant white-color, white-collar crimes
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I liked your original meaning.
Black and brown people go to prison for felonies.
These guys stole hundreds of millions and they will never see a day in jail.
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Let me get this straight. The article says that “taxpayers were fleeced out of $400 million meant for K-12 education,that “investigators have recovered $220 million,” and that these enterprising fellows have been “ordered to pay $18.75 million in fines .” So, where’s the other $161.5 million?
Nice payday, huh?
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Also, don’t forget about the damage done to the students, damage beyond monetary value.
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Yes!
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The missing millions
Where’s the rest?
Just ask the Swiss
But they won’t say
Unless you pay
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Sean McManus called himself “Joseph McManus” when he and his gang previously used weaknesses in Ohio’s charter school laws to try to open a “blended learning” STEAM charter school in Columbus, Ohio with his California Prep email address.
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