Archives for category: Corruption
« Older Entries
Newer Entries »

Tom Ultican: Is Reform of the Charter Law in California Still Possible?

By dianeravitch
July 18, 2019 //
5

 

Tom Ultican, retired teacher of advanced math and physics in San Diego, is a dogged investigator. In this post, he traces the ongoing efforts to reform the weak charter law in California.

California has more charter schools than any other state, with more than 1,300. The original law capped the number at 100. Since then, the money of the California Charter Schools Association has blown away the cap as well as all previous efforts to regulate charters. Billionaire Reed Hastings served as chair of the state board and demolished the meager limits that existed.

In this huge state, the law allows a district to authorize a charter in another district hundredsof miles away and collect a commission for every student who enrolls. It allows charter applicants to appeal all the way to the state board and ignore the needs and wishes of the local district. The law assures that charter schools will have little or no oversight, since the state education department does not have the staff to oversee them.

The current law is an invitation to fraud, embezzlement, and corruption. This is not to say that all charters are run by corrupt individuals, but the constant revelation of financial scandals in the charter industry demonstrates the need for revision of the law to protect the public interest. Only a few weeks ago, eleven people in the charter industry were indicted for stealing more than $50 million.

Yet, as Ultican shows, the road to charter reform has been rocky. Governor Jerry Brown, whose leadership was admirable in many other ways, adamantly refused to rein in the charter industry. Governor Newsom is indebted to powerful families in the charter industry, and his chief of staff is a charterista.

Yet Ultican holds out hope that some actual reform might yet survive. Anything, he says, is better than the complete deregulation that has currently allows unscrupulous grifters to feast on the money intended to pay for education.

Categories Accountability, California, Charter Schools, Corporate Reformers, Corruption, Disruption, Education Industry, Fraud, Privatization

Jeff Bryant: Why Won’t the Charter Industry Admit Its Failures and Clean House?

By dianeravitch
July 15, 2019 //
6

Jeff Bryant notes the escalating scandals surrounding the charter industry, creating a stench that can’t be covered up and hidden.

Yet the charter industry refuses to acknowledge its problems and act to correct them and to oust the bad actors from its big tent.

Case in point: when the Network for Public Education released a study of the federal Charter Schools Program which showed that about one-third of all federally-funded charters had never opened or had closed soon after opening, at a cost of taxpayers of $1 billion, the charter industry was at first silent. Then it responded by attacking the report and NPE, claiming that NPE was “union-funded,” which it is not. NPE has indeed received contributions from unions, but the overwhelming bulk of its funding comes as voluntary gifts from individual supporters.

The attack came from paid employees of the National Alliance for Public [sic] Charter Schools, whose job seems to be to deny any charter misdeeds and to attack all critics and criticism. They were outraged that NPE would criticize the federal Charter Schools Program, which under Betsy DeVos has directed the bulk of its $440 million a year to support of large corporate chains like KIPP, IDEA, and Success Academy. It is now a charter slush fund, controlled by DeVos and her merry band of privatizers.

Bryant, who was a co-author of the NPE report with Carol Burris, writes:

As charter reform in California takes one step forward and two steps back, charter proponents operating at the national level show no signs of being willing to consider the need for more regulatory oversight.

For instance, months after the report Burris and I published about waste in the federal government’s charter school grant program, officials from the National Alliance for Public Charter Schools, a charter school lobbyist and advocacy group, attacked our report in a national media outlet supportive of charter schools.

The critique by Christy Wolfe and Nathan Barrett is a slog through a mostly unsubstantiated defense of a program their organization does not even administer and does not seem to have any greater understanding of than Burris and I’ve demonstrated. But what Wolfe and Barrett have written can serve as a useful example of how charter industry operatives continue to respond disingenuously to criticism of their schools no matter how reasonable and well-founded the criticism is.

Now, why would the National Alliance for Public [sic] Charter Schools respond so defensively to any criticism of the federal Charter Schools Program?

Surely it can’t be because the NAPCS received a grant of $2.385 million from that same program in 2018.

The charter slush fund must be protected at all costs, regardless of where the money goes or how it is spent and misspent. Accountability be damned!

 

 

Categories Charter Schools, Corruption, Education Reform, Fraud

D.C.: Famed Philanthropist Jeffrey Epstein Endorses Charter School Dominance In D.C.

By dianeravitch
July 15, 2019 //
48

 

To understand the charter industry, you must appreciate that it is driven by extremely wealthy people and has no grassroots. It has mastered the arts of marketing and branding, but does not have a plan to improve education other than to draw students and resources away from public education, which belongs to all of us.

People often ask me, “Why do the super-rich cluster to the cause of privatization?” The Answer is not simple because many different motives are at work. Some see giving to charters as a charitable endeavor, and their friends assure them that they are “giving back,” helping poor children escape poverty. Others want to impress their friends in their social strata, their colleagues in the world of high finance. Being a supporter of charter schools is like belonging to the right clubs, going to the right parties, sharing a cause with other very rich people.

Perhaps infamous pedophile Jeffrey Epstein fits into the last category. Perhaps he fits into all those categories.  He is a man who grew up in modest circumstances in Brooklyn, attended public schools, and owed his start in life to the New York City public schools.

But once he achieved wealth and could call himself a “philanthropist,” he realized that choosing the right causes was important as a way of burnishing his image, showing that he was running with the In Crowd.

So, of course, he announced that he supported charter schools, not the public schools to which he owed a debt for launching him in life.

In 2013, his foundation issued a press release announcing that he looked forward to the dominance of charter schools in Washington, D.C. and predicted that they would succeed because they were unregulated. That, in a sense, was his own secret: he succeeded because he was unregulated, neither his appetites nor his activities were regulated. Supporting charter schools showed that he moved in the circles of the DFER elites, the hedge fund kings. No longer was he the boy from Lafayette High School in Brooklyn; he was a philanthropist encouraging the growth of school privatization, not just as competition but as a replacement for public schools.

Now that he has been indicted yet again, this time in New York, for his crimes against young girls, it is interesting to read his fulsome self-praise for investing in the charter industry.

This press release was issued by the Jeffrey Epstein VI Foundation:

NEW YORK, Feb. 8, 2013 /PRNewswire/ — For the first time, more students in Washington DCenrolled into charter schools than public schools. Last year, charters had an 11% increase in student enrollment, while public schools had a 1% increase. Mayor Vince Gray noted that the nation’s capital is only a few years away from being evenly split between the two school systems.

The shift was welcomed by financier and well-known education philanthropist, Jeffrey Epstein and his foundation, the Jeffrey Epstein VI Foundation. Jeffrey Epstein founded the Program for Evolutionary Dynamics at Harvard University with a $30 million dollar grant in 2003 and has since expanded his support into early development, Head Start and charter school programs across the nation, including Washington DC.

Some of the charter schools that the Jeffrey Epstein has supported include, Harlem Link Charter School, the Maya Angelou Schools in DC and the Bard High School Early College in New York. “Charter Schools have the freedom to self-regulate. It’s a critical component of their success. They also reduce the burden on the public school system,” Jeffrey Epstein asserted.

In fact, last year, the DC Schools Chancellor, Kaya Henderson, decided to close fifteen public schools due to the shift to charters.

Despite this growth, there is concern about the number of charter schools that close every year. According to The Center for Education Reform, 15% of charters close every year. However Jeanne Allen, President of the Center for Education Reform explained that unlike the public school system, this closure rate reflects a healthy level of accountability. Today 41 states have charter school laws and audit requirements. 52% of charter schools are also now authorized by school districts and 48% independently.

“We need to enhance state standards of excellence,” Jeffrey Epstein noted. “But it’s essential that these laws are just that, standards, and not management policies.”

Jeffrey Epstein is a trustee of the Institute for International Education, a former board member of Rockefeller University, the Council of Foreign Relations, the Trilateral Commission, New York Academy of Science and sits on the board of the Mind, Brain and Behavior committee at Harvard.

SOURCE www.jeffreyepsteineducation.com

 

Categories Accountability, Charter Schools, Corporate Reformers, Corruption, District of Columbia, Education Industry, Privatization

Law Journal: “Are Charter Schools the Second Coming of Enron?”

By dianeravitch
July 14, 2019 //
65

This law journal article about the self-dealing and corruption in the charter sector was written by Professors Preston C. Green III, Bruce D. Baker, and Joseph Oluwole.

Since it was written, there have been so many examples of scandals, conflicts of interest, and outright theft of public dollars that this prediction seems remarkably prescient.

Here is the table of contents:

INTRODUCTION

OVERVIEW OF ENRON

A. ENRON AND DEREGULATION

B. THE LJM SPES

C. ENRON’S COLLAPSE

II: ENRON’S GATEKEEPER PROBLEMS

A. ARTHUR ANDERSEN

B. INDEPENDENT ANALYSTS

C. CREDIT RATING AGENCIES

D. ENRON’S BOARD OF DIRECTORS

E. SECURITIES AND EXCHANGE COMMISSION (SEC)

III: CHARTER SCHOOLS AND RELATED-PARTY TRANSACTIONS

A. CHARTER SCHOOL DEREGULATION AND PRIVATE INVESTORS

B. EXAMPLES OF ENRON-LIKE RELATED-PARTY TRANSACTIONS

1. IMAGINE SCHOOLS

2. IVY ACADEMIA CHARTER SCHOOL

3. AMERICAN INDIAN MODEL CHARTER SCHOOLS

4. GRAND TRAVERSE ACADEMY

5. PENNSYLVANIA CYBER CHARTER SCHOOL

C. THE FEDERAL GOVERNMENT, RELATED-PARTY TRANSACTIONS, AND THE NEED FOR STRONG GATEKEEPING

IV: CHARTER SCHOOL GATEKEEPERS

A. AUDITORS

B. CHARTER SCHOOL GOVERNING BOARDS

C. CHARTER SCHOOL AUTHORIZERS

D. STATE EDUCATION AGENCIES (SEAS)

E. U.S. DEPARTMENT OF EDUCATION

CONCLUSION

Here is the Introduction to the article:

INTRODUCTION

In December 2001, Enron rocked the financial world by declaring bankruptcy due to the effects of an accounting scandal. Earlier in the year, Enron had been the sev- enth largest corporation in the country.1 This energy trading and utilities giant had become a dominant player by aggressively benefitting from the federal deregulation of the energy markets.2 Enron’s collapse erased more than $60 billion in shareholdervalue and caused thousands of employees to lose their jobs and pensions.3

Enron proved not to be an anomaly. Soon after the corporation’s collapse, thefinancial markets were further roiled when WorldCom, Adelphia, and Tyco, among others, declared bankruptcy because of accounting fraud.4 Congress responded to this wave of scandals by passing the Sarbanes-Oxley Act of 2002, which imposed greater accountability on publicly traded companies and their auditors.5

Andrew Fastow, Enron’s CFO, was a pivotal figure in Enron’s collapse. He cre- ated two special purpose entities (SPEs)—LJM1 Cayman LP (LJM1) and LJM2 Co- Investment LP (LJM2)—to serve as a hedge against potential downturns in Enron stock.6 Fastow and his associates served as the managers of these SPEs.7 Because ofFastow’s dual management roles, Enron should have disclosed to its shareholdersthat the partnerships were related-party transactions, defined as deals between enti- ties with special, preexisting relationships,8 which Enron failed to do.9 Although re- lated-party transactions are legal, they can create conflicts of interest that have the potential of harming their shareholders.10 Specifically, these transactions “can createthe impression that an insider is using company assets for personal benefit, and that the company is getting the short end of the stick.”11 Indeed, Fastow did take ad- vantage of this conflict of interest by making millions of dollars from the SPEs and using the illegal proceeds to invest in other interests.12

Enron’s collapse was significant because it exposed the deficiencies of gatekeep- ers that had the responsibility of protecting the integrity of the markets.13 These gate-keepers included Enron’s auditor Arthur Andersen, independent analysts, credit rat- ing agencies, corporate boards, and the Securities and Exchange Commission (SEC).14 In the case of the Enron debacle, all of these watchdogs failed to detect thedangers caused by Fastow’s conflict of interest.

Related-party transactions are now posing a threat to the charter school sector. Charter schools are a deregulated departure from traditional public schools because they are exempted from laws governing budgets and financial transparency.15 Similar to Fastow, unscrupulous individuals and corporations are using their control over charter schools and their affiliates to obtain unreasonable management fees for their services and funnel money intended for charter schools into other business ventures.16

In spite of this evidence, the federal government has consistently attempted to increase the number of charter schools without pushing for oversight.17 This policy approach is alarming because it will create more opportunities for illegal related- party transactions.18 Also, this approach runs the risk of harming students in low- income and minority communities—the very children whom charter schools are sup- posed to serve.19 Therefore, charter school gatekeepers must learn from the Enron debacle by becoming more prepared to guard against the dangers posed by related- party transactions.20 These gatekeepers include auditors, governing boards, authoriz- ers, state education agencies (SEAs), and the U.S. Department of Education.

In this Article, we discuss how some charter school officials have engaged in Enron-like related-party transactions to defraud charter schools. We also identify several measures that can be taken to strengthen the ability of charter school gate- keepers to protect against this danger. This Article is divided into four Parts. Part I describes how Fastow used his management of Enron and the SPEs to obtain illegal profits contrary to the interests of the former company. Part II discusses why the gatekeepers in the financial sector failed to stop the related-party transactions be- tween Enron and the LJM entities. Part III provides examples of how individuals in the charter school sector are benefitting from their control over charter schools and their affiliates in a manner similar to Fastow. Part IV analyzes, inter alia, pertinent statutory and regulatory provisions that apply to state and federal gatekeepers. We perform this task to identify the steps that legislators and policymakers can take to increase the gatekeepers’ ability to protect against harmful related-party transactions.

If you want to understand the deep potential for financial corruption at the heart of deregulated private charter schools, you must read this article.

Here is a small excerpt:

Major philanthropic organizations have invested heavily in the charter school sec- tor.112 For example, the Walton Family Foundation, which was established by the founder of the Walmart retail chain, has pledged $1 billion to support charter schools.113 Reed Hastings, the founder of Netflix and a long-time supporter of charter schools, has created a $100 million education foundation.114 Hedge funds and other private investors have also become interested in investing in charter schools.115

The attention of philanthropic groups and private investors has dramatically im- pacted the charter school sector. For example, the education management organiza- tions (EMOs) that these groups operate have become the dominant players in the charter school sector.116 EMOs are for-profit or nonprofit entities that provide edu- cational and management services to charter schools.117 EMOs manage between thirty-five to forty percent of all charter schools, accounting for about forty-five per- cent of charter school enrollments.118

Charter schools attract investors because of the potential for new revenue streams.119 For instance, the New Market Tax Credits (NMTC) program provides investors the opportunity to make profits from charter-school real estate transac- tions.120 Enacted as a component of the Community Relief Tax Credit Act of 2000,121the NMTC was designed to encourage investment in low-income communities.122The NMTC accomplishes this goal by providing investors in a community develop- ment entity (CDE) a thirty-nine percent tax credit over a seven-year period.123 A CDE is a corporation or partnership that provides capital for investment in low-income communities.124 An educational organization such as a charter school foundation can use NMTC funding to build a charter school.125

For-profit entities can double their investment in charter-school real estate pro- jects by taking advantage of the NMTC as well as other federal tax credits.126 For- profit entities can also obtain revenue from charter schools through lease payments for the use of the facilities. For instance, the Robert Bacon Academy (RBA), a for- profit EMO operating in North Carolina, received $1.5 million in rent, as well as almost $549,000 for maintenance during the 2013–14 school year—from one char- ter school alone.127

Investors can also obtain profits through the management fees that EMOs charge for their services.128 Management fees can be very generous. In the 2013–14 school year, RBA received a management fee of sixteen percent of its school’sexpense as well as “additional incentive payments based on student achieve-ment.”129 Two charter schools paid RBA nearly “$2.4 million in fees and incentivesout of just $13 million in total revenue.”130

Please send copies of this law review article to the Center for American Progress, the Brookings Institution, the New York Times editorial board, the Washington Post editorial board, your Senators and members of Congress, and to the campaigns of every Democrat running for President.

Categories Accountability, Charter Schools, Corruption, Education Industry, Fraud, Privatization

BREAKING NEWS: Former Secretary of Education for Puerto Rico Arrested!

By dianeravitch
July 10, 2019 //
13

 

In a major corruption investigation, the FBI arrested former Puerto Rico Secretary of Education Julia Keleher in DC. 

Keleher was brought to the Island to cut costs, impose charters and vouchers, and break the union. She was paid $250,000 a year while preaching austerity and budget cuts.

Puerto Rican educators did not like her, to put it mildly. They referred to her with the hashtag #JuliaGoHome.

Puerto Rican journalist #RimaBrusi tweeted that the new hashtag is #JuliaGoToJail

The charges include wire fraud, money laundering, and theft.

Categories Accountability, Corporate Reformers, Corruption, Education Reform, Fraud, Privatization, Puerto Rico

G.F. Brandenburg on the Strange Case of the D.C. Editorialist Who Still Loves Michelle Rhee

By dianeravitch
July 10, 2019 //
21

 

G.F. Brandenburg cannot understand the Washington Post editorial writer Jo-Anne Armao. When Michelle Rhee started her job as chancellor of the D.C. schools in 2007, Armao interviewed her and decided that she was the greatest educator ever. Nothing that has happened in the past dozen years has changed her views. To this day, she still writes lovingly, respectfully about the Miracle that was Michelle Rhee. All her initiatives have failed. A huge cheating scandal was covered up and forgotten. Charter scandals have come and gone. A high school boasted of its 100% graduation rate, but it was a fake.

No matter. The Washington Post editorial board has Rhee’s back, almost a decade after she left.

For a fun trip down memory lane, read the comments on the John Merrow post from 2013 that is included.

Categories Accountability, Cheating, Corporate Reform, Corruption, Disruption, District of Columbia, Education Industry, Education Reform, Failure, Fraud, Rhee, Michelle

Carol Burris: Who Is Ferdinand Zulueta?

By dianeravitch
July 1, 2019 //
9

Carol Burris wrote this post on learning that the National Charter Schools  Conference was honoring charter chain founder Ferdinand Zulueta.

 

I am dumfounded that Fernando Zulueta is being honored by the National Charter Schools Conference. He and his brother run one of the most notorious for-profit charter management companies in the country, Academica. The Office of Inspector General’s audit of three Academica schools — Excelsior, Mater High and Mater East  found that the Board of the Excelsior charter school, which ended its relationship with Academica in 2013, allowed Academica to find, design and procure facilities, recommend staff, conduct the day-to-day running of the school, assume responsibilities for accounting, budgeting and produce its financial forecast. The for-profit CMO participated in all charter board meetings and made recommendations to the board.

OIG’s audit of the two Mater charter schools identified related party transactions between the for-profit Academica and a real estate company that leased both buildings and security services to the schools.

Although the audit is difficult to follow due to extensive redactions, it is clear that the investigation found inappropriate transactions among the CMO, School Development HG II, L.L.C., School Development East L.L.C., Duke School Properties, L.L.C. and the charter schools.

School Development Corporation HG II owned and leased a building to Mater High School while School Development East owned and leased a building to Mater East. School Development Corporation was owned by a Panamanian company, the Wolfson Hutton Development Company. The directors of the Wolfson Hutton Company were the Zulueta brothers, one of whom is being honored at the Charter Schools Conference. The brothers were the founders of both the Mater Academies and Academica. The details of the complex for-profit web can be found here in an earlier investigative report by the Miami-Dade Public Schools.

According to OIG, there was no evidence that the relationship between the CMO and the real estate company was disclosed to the charter school’s board of directors at the time of the original lease; nor was there any “evidence of a discussion regarding the renewal of the management agreement with Academica or the reasonableness of CMO services or fees.” The original real estate transactions took place while Fernando Zulueta served on the Mater Board.

By 2010, the Zulueta brothers controlled more than $115 million in Florida tax-exempt real estate with the companies collecting about $19 million in lease payments. Many of the charter schools paid rents well above expected rates. Academica not only benefited from renting real estate it owned, it also sold payroll, employer services, construction services, equipment leasing and school services to the schools.

Considering the complicated web of conflicts of interest and raw profiteering, one would think that Academica would have been scaled back. Not at all. Deep-pocket contributions to Florida lawmakers have shielded Academica and other for-profit CMOs from regulations that inhibit their ability to make a profit off taxpayer funds. And then there are the legislators who are profiting from charter schools.

Until 2016, Academica’s closest ally in the capital was Fernando Zulueta’s brother-in-law, [former Florida House Rep.] Erik Fresen. Fresen, a former lobbyist for Academica, served as chairman of the House Education Appropriations even while working as a consultant for a firm called Civica which had contracts with Academica schools.

During his eight years in the legislature, Fresen never bothered to file his taxes, resulting in a 60-day prison sentence after he left office.

Categories Accountability, Charter Schools, Corruption, Education Industry, Education Reform, Florida, For-Profit, Privatization

Peter Greene: DeVos Puts Profits Over Students (Are You Surprised?)

By dianeravitch
June 29, 2019 //
10

 

Peter Greene writes here about Betsy DeVos’s recent decision to roll back Obama-era regulations intended to protect students against predatory for-profit colleges. 

Sadly, this is what we have come to expect from a Secretary of Education who is more interested in protecting the free market than protecting students against fraud.

Greene writes that DeVos rolled back

the Obama-era requirement that such schools either show that their graduates actually land jobs, or the school would lose access to all that sweet sweet federal money. That was a powerful piece of leverage, because the for-profit colleges focus on veterans and poor folks with the result that a great deal of the for profit college revenue stream comes from the feds, who loan to the students and pay off the schools, guaranteeing that the for-profits get paid and that the students are in hock to the feds.

Rolling back Obama-era protections is problematic because the Obama administration itself did a super-lousy job of riding herd on these predatory schools. At one point, having announced that they were now by golly going to clamp down those outfits, they turned around and bailed out one of the worst. Then, when that outfit collapsed anyway, the feds let them be sold off to a debt-collection agency.

It was after all that foolishness that the administration finally implemented a gainful employment rule. This was also followed by  students scammed by the for-profit agitating to be released from their debts. The Department of Justice requested that the Department of Education simply release the portion of that debt that they held; they refused.

All of that happened before Trump ever descended the escalator to unleash havoc on US politics; it’s only fair to note that this is, in many ways, a mess that DeVos inherited and which the Obama administration never exactly showed signs of fixing.

Last week, DeVos was sued–again–by a boatload of students stranded in massive debt. The student position is that they were defrauded and their loans should be forgiven.

DeVos’s position about loan forgiveness has been to simply pretend to lose all the paperwork and never process any of the requests to have loans erased. Having ignored the rules for two years, DeVos last year tried to get rid of them, and this week she finally did it.

Hundreds of thousands of students who were defrauded by predatory for-profit colleges are on their own. Shameful.

Categories Accountability, Betsy DeVos, Corruption, Education Reform, For-Profit, Fraud, Higher Education

Karen Francisco: Indiana’s School Choice Frauds

By dianeravitch
June 21, 2019 //
2

 

Karen Francisco, editorial page editor of the Fort Wayne Journal-Gazette, is a great defender of democracy, honesty, and public schools. She is a keen observer of the school choice hustle in Indiana, where grifters and entrepreneurs are welcome to rip off the public. Thanks, Former Governor’s Mitch Daniels and Mike Pence, and compliant legislators.

In this editorial, she explains how charter schools and voucher schools evade accountability. One neat gimmick is to change the name of a failing choice School, and the clock gets reset. Presto, Change-O.

She begins:

When Horizon Christian Academy produced some of the lowest standardized test scores in the state in 2015, a spokeswoman for the Institute for Quality Education defended the Fort Wayne school’s poor performance by claiming accountability for Indiana voucher schools is greater than for public schools.

“Traditional public schools as well as public charter schools can receive an F for four consecutive years before the state can intervene,” Erin Sweitzer told The Journal Gazette. “Private voucher schools, however, are required to stop accepting new voucher students after two consecutive years of receiving a D or F.”

What Sweitzer and other voucher proponents don’t acknowledge is the accountability loophole that allows charter and voucher school operators to walk away from a failing school and open shop under a different name – with barely an interruption in the generous flow of state tax dollars. After a D grade in 2015-16, Horizon Christian Academy went on to receive an F for each of the next two academic years. The state prohibited the school from accepting new voucher students last year, but paid $880,000 in vouchers for returning students. That’s on top of the $11.4 million Horizon’s three schools have collected since the taxpayer-funded voucher program began in 2011.

Now, the school’s co-founder has left Horizon and is preparing to open a new faith-based school, Abraham Preparatory Academy.

Tammy G. Henline told The Journal Gazette’s Ashley Sloboda that the school, at Statewood Baptist Church, is planning a “large, public registration soon.” WFFT-TV reported the school will “rely heavily on a virtual curriculum” and is seeking state accreditation, which would make it eligible to receive vouchers.

If the Indiana State Board of Education approves accreditation, it will deliver Exhibit A in the accountability charade supported by voucher proponents.

In the name of parent choice, they ignore policies that allowed the failing Imagine public charter school to reopen as Horizon Christian Academy and for unlicensed educators to earn six-figure salaries overseeing D- and F-rated schools.

Apparently the voters in Indiana don’t care about how taxpayer dollars are wasted.

Categories Charter Schools, Corporate Reformers, Corruption, Education Industry, Fraud, Indiana, Privatization, Vouchers

Mercedes Schneider on the Biggest Charter Heist in History-More than $50 Million and Still Counting

By dianeravitch
June 21, 2019 //
14

Mercedes Schneider read the voluminous indictment of the founders of the online charter chain called A3. She describes the counts in the indictment in this post.

She writes:

In this post, I offer excerpts of the 67 counts detailed in the 235-page indictmentof Sean McManus, Jason Schrock, and nine others who used weaknesses in California’s charter school laws to construct a network of fraud and launder $50M in public funds into their own pockets over the course of years. These 11 individuals (and unidentified others) did so by opening multiple charter schools and using companies, both pre-existing and newly-created, to establish a complex system of self-dealing– with little to no education actually happening via those exploited, educational dollars.

The California legislature is currently deciding whether and how to reform the state’s charter law. The California Charter School Association is fighting any accountability or reform of the law. If a theft of more than $50 million by charter vultures doesn’t persuade the legislature of the need for reform, nothing will.

Bring on more theft of public money! More millions scooped up by entrepreneurs and grifters!

Thanks, Reed Hastings, Eli Broad, Bill Bloomfield, the Fischer family (the Gap and Old Navy), the Walton family, and all the other billionaires who make this piracy possible and who fund the CCSA!

Why spend money on public schools when it can go right into the bank accounts of smart and savvy entrepreneurs?

 

Categories Accountability, Billionaires, California, Charter Schools, Corruption, Education Industry, For-Profit, Fraud, Privatization, Virtual Charter Schools
« Older Entries
Newer Entries »