Perhaps you remember the A3 charter scam in California. The online charter chain managed to collect hundreds of millions of dollars from the state for ghost students. Its leaders were eventually arrested, charged, and convicted. They are still repaying their ill-gotten gains.
Kristina Taketa of the San Diego Union-Tribune reports that the latest installment of their restitution was $18.8 million.
She writes:
An additional $18.8 million has been paid to San Diego County as restitution for the statewide A3 charter school scam in which the state was defrauded of hundreds of millions of school dollars, the San Diego County District Attorney announced Wednesday.
Sean McManus of Australia, along with Jason Schrock of Long Beach, led a statewide charter school scheme from 2016 to 2019 in which they used a network of mostly online charter schools to defraud the state of approximately $400 million and used $50 million of that amount for personal use. They did so by falsely enrolling students and manipulating enrollment and attendance reporting across their schools to get more money per student than schools are supposed to, prosecutors said.
In total, about $240 million of the $400 million has been recovered. The District Attorney’s Office said it is not trying to get back all of the $400 million because some of the money ended up going to noncriminal actors, such as teachers, youth programs and others, who provided services for the A3 schools and who did not know the money was obtained illegally.
Of the $240 million that has been recovered, about $95 million has been returned to the state treasury, with an additional $90 million expected to be returned to the state within the next few months.
Debbie L. Sklar of the Times of San Diego provided more details on how the scam worked.
More than $37 million in fines has been paid to San Diego County as part of a court judgment stemming from a charter school fraud scheme that took millions in public school funds and led to criminal charges against 11 people, the San Diego County District Attorney’s Office announced Wednesday.
The total fine amount includes $18.75 million recently paid by Sean McManus, CEO and president of A3 Education, who pleaded guilty to stealing more than $50 million in public funds and was sentenced to four years in prison.
Prosecutors say McManus and co-defendant Jason Schrock directed subordinates to open up 19 “A3 charter schools” in San Diego County and elsewhere across the state, and collected state funds by alleging students were enrolled in programs run by the schools.
The District Attorney’s Office, which called the case “one of the nation’s largest fraud schemes targeting taxpayer dollars intended for primary education,” said the men paid for student information and used the info to enroll children in summer school programs at their online campuses. Prosecutors say some parents were unaware their children were enrolled in a charter school at all.
The defendants then took measures to inflate the amount of money the state paid the charter schools by falsifying documentation, which included backdating documents to indicate that students were enrolled in the charter schools for longer than they were or switching students between different A3 schools to increase funding per student or per school beyond legal limits, prosecutors said.
The perpetrators were very clever and very, very rich until they were caught.
In a curious coincidence, I had breakfast at a hotel in January 2019 in Newport Beach, California, with a friend. At the table next to us sat a man and woman discussing education and a business transaction. I tried not to eavesdrop, yet found myself fascinated by the curious combination of topics. As they got up to leave, I stopped the man and said, “Excuse me, but I wonder if you are in the charter school business.” He responded, “Yes, I am Sean McManus, and I run a chain of charter schools.” The boom fell not long after.

Off topic: It’s good to be a rich Saudi Arabian. You can dismember a member of the American press corps (or any human being, for that matter), the world knows about it down to all the details except what happened to Kashoggi’s body, but you can get away with it by buying up professional sports.
The seventeen golfers–all of whom are multi-millionaires and in no danger of ever people less than mega wealthy–who left the PGA tour to play in a new Saudi-financed golf league decided the lure of lots of guaranteed money with the chance of a lot more is a great example of our times. They will gladly help MBS and Saudi Arabia and ignore human rights. Indeed, they are setting them back because of greed. Most Americans haven’t paid attention to MBS’s purchase of English Premier League club Newcastle United. He is investing millions to raise a traditional, but lately bottom level team, to European heights. And most observers feel he can do it within five years. Investing in professional athletes and teams is rewriting history and diminishes the memory of journalists everywhere.
LikeLike
“Sean McManus, CEO and president of A3 Education, who pleaded guilty to stealing more than $50 million in public funds and was sentenced to four years in prison.”
Only FOUR years!
That sentence is a crime in itself.
McManus should have been sentenced to twice the total numbers of years of the administrators and teachers found guilty in the Atlanta test cheating scandal, a minimum of 20 years with no chance of parole. And that is me being nice. If I was the judge, he would be serving one year for every million his stole. That’s 50 years but I’d give him a break and allow parole at 25 years for good behavior, AND he’d have to service his time in one of the publicly funded, private-sector, for-profit prisons where I’ve read that not eating all of the food you are served for a meal is considered bad behavior and those prisons are allowed to increase jail time for infractions like that.
What happened to those teachers and administrators found guilty of changing student answers on standardized tests?
“A furious Atlanta judge had a message for the 10 public school teachers, principals and administrators who — after months of testimony — stood before him, convicted of participating in a widespread conspiracy to inflate students’ scores on state tests.”
https://www.washingtonpost.com/local/education/eight-atlanta-educators-in-test-cheating-case-sentenced-to-prison/2015/04/14/08a9d26e-e2bc-11e4-b510-962fcfabc310_story.html
https://www.edweek.org/teaching-learning/prison-time-begins-for-atlanta-educators-convicted-in-cheating-scandal/2018/10
LikeLike
Just four years for stealing $50 million from the public?
I’d like to know how that “deal” came about.
LikeLike
I think the real steal was hundreds of millions. I find it hard to believe that this entrepreneur provided anything of value.
LikeLike
Quite an anecdote at the end there, Diane.
LikeLike
I was trying to remember the name “Chauncey Gardner,” the Peter Sellers character who was always in very important places and everyone assumed he was somebody important. In fact, he was a gardener, but he rose to prominence just by being in the right places and looking the part.
LikeLike
Regarding the incident in Newport Beach, I had a similar occurrence here in West L.A., also in 2019. Standing in line at the market, the man behind me was on his phone, telling someone on the other end that $10,000 was the reward for successful online school phone calling. He said something like this: It doesn’t matter if they enroll. Just get X number of subjects to log in and the ten grand is yours. Data are dollars.
And now, I apologize as I also, like others today, feel compelled to go off topic. I just finished the last day of school today. It’s time for some much needed vacation from teaching and fighting corporate reformsters. It’s been a maelstrom the last couple years. I am finally going to be able to unplug for a while. Teachers have been through the ringer since March of 2020. To all the teachers who view this, I hope you are able to afford to take some time truly off. You deserve it like never before. I know I do. Most years, vacation is time to relax and refresh. This year, vacation is time to recuperate and heal. Cheers to all the teachers!
LikeLike