The former director of the Madero Charter School in California was charged with fraud and embezzlement. The school was funded by the federal Charter Schools Program. The charges demonstrate the lack of accountability in state and federal charter school laws.

The Business Journal reported:

A former charter school director in Madera County has been indicted for allegedly embezzling funds from a program that was federally funded, acting U.S. Attorney Kimberly A. Sanchez announced Tuesday. 

On July 17, a federal grand jury returned a sealed indictment against Nicholas A. Retana, 67, from Madera. The indictment was unsealed on Monday and Retana was arraigned in federal court in Fresno.

According to court documents, Retana was the executive director and founder of a kindergarten through eighth grade charter school in Madera County until early 2020. 

While not named in the news release, Retana’s co-founded and led Ezequiel Tafoya Alvarado Academy from 2005 until 2019. 

An audit conducted for the Madera County Superintendent of Schools found evidence of corruption. The potential misuses of public funds totaled more than $1.06 million, according to the audit.

Prosecutors allege that during Retana’s time in that role, he used school funds to pay for personal expenses for himself, his family and associates. 

Among the alleged misuses of funds were the purchase of two new Ford F-150 trucks for his sons, who were employed by the school. He also allegedly paid a woman $12,000 who was described in court documents as a self-proclaimed sex worker turned relationship coach, with whom he had a personal relationship. 

The audit found that this person was paid for conducting life coaching workshops for eight graders despite not having any relevant licensure.

Retana is accused of mislabeling the expenses in school records and misrepresenting them when questioned. He faces up to 10 years in prison and a $250,000 fine if convicted.