Archives for category: Fraud

As a native Texan, I have not had a lot of reasons to proud of my state lately. The leadership—Governor Gregg Abbott and Lt. Governor Dan Patrick—compete to see who is meanest. They pushed through a very restrictive abortion law that pays bounties to people who squeal on women who got an abortion (the bill turns citizens into the Stasi of East Germany or the neighborhood spies of Cuba or the morality police of Iran). Dan Patrick is a voucher zealot, whose bad idea gets knocked down by the Legislature regularly. Abbott recently brought up his dim thought of revisiting a 1982 Supreme Court decision that ordered Texas and other states to educate the children of undocumented immigrants. Abbott wants them to remain illiterate, which is likely to cost the state more in the long run than allowing them to go to school (his proposal is also inhumane, but decency and humanity are not part of his calculus.)

But here is some good news from Texas! The editorial board of the Houston Chronicle won a Pulitzer Prize for writing about Trump’s absurd claim that the 2020 election was rigged and stolen from him. His team of lawyers brought dozens of lawsuits claiming election fraud, but lost all of them, even when the judges were appointed by Trump, even twice before the U.S. Supreme Court, which has a lop-sided majority of Republican-appointed justices.

The full series is here. The Chronicle is behind a paywall, and you may have to subscribe (as I do) to read them all. But I couldn’t resist sharing my favorite, which was published on January 8, 2021. It calls on Senator Ted Cruz to resign because of his shameful behavior in promoting The Big Lie.

The editorial says:

In Texas, we have our share of politicians who peddle wild conspiracy theories and reckless rhetoric aiming to inflame.

Think U.S. Rep. Louie Gohmert’s “terror baby” diatribes or his nonsensical vow not to wear a face mask until after he got COVID, which he promptly did.

This editorial board tries to hold such shameful specimens to account.

But we reserve special condemnation for the perpetrators among them who are of sound mind and considerable intellect — those who should damn well know better.

None more than U.S. Sen. Ted Cruz.

A brilliant and frequent advocate before the U.S. Supreme Court and a former Texas solicitor general, Cruz knew exactly what he was doing, what he was risking and who he was inciting as he stood on the Senate floor Wednesday and passionately fed the farce of election fraud even as a seething crowd of believers was being whipped up by President Donald Trump a short distance away.

Cruz, it should also be noted, knew exactly whose presidency he was defending. That of a man he called in 2016 a “narcissist,” a “pathological liar” and “utterly amoral.”

Cruz told senators that since nearly 40 percent of Americans believed the November election “was rigged” that the only remedy was to form an emergency task force to review the results — and if warranted, allow states to overturn Joe Biden’s victory and put their electoral votes in Trump’s column.

Cruz deemed people’s distrust in the election “a profound threat to the country and to the legitimacy of any administrations that will come in the future.”

What he didn’t acknowledge was how that distrust, which he overstated anyway, was fueled by Trump’s torrent of fantastical claims of voter fraud that were shown again and again not to exist.

Cruz had helped spin that web of deception and now he was feigning concern that millions of Americans had gotten caught up in it.

Even as he peddled his phony concern for the integrity of our elections, he argued that senators who voted to certify Biden’s victory would be telling tens of millions of Americans to “jump in a lake” and that their concerns don’t matter.

Actually, senators who voted to certify the facts delivered the truth — something Americans haven’t been getting from a political climber whose own insatiable hunger for power led him to ride Trump’s bus to Crazy Town through 59 losing court challenges, past state counts and recounts and audits, and finally taking the wheel to drive it to the point of no return: trying to bully the U.S. Congress into rejecting tens of millions of lawfully cast votes in an election that even Trump’s Department of Homeland Security called the most secure in American history.

The consequences of Cruz’s cynical gamble soon became clear and so did his true motivations. In the moments when enraged hordes of Trump supporters began storming the Capitol to stop a steal that never happened, desecrating the building, causing the evacuation of Congress and injuring dozens of police officers, including one who died, a fundraising message went out to Cruz supporters:

“Ted Cruz here,” it read. “I’m leading the fight to reject electors from key states unless there is an emergency audit of the election results. Will you stand with me?”

Cruz claims the message was automated. Even if that’s true, it’s revolting.

This is a man who lied, unflinchingly, on national television, claiming on Hannity’s show days after the election that Philadelphia votes were being counted under a “shroud of darkness” in an attempted Democratic coup. As he spoke, the process was being livestreamed on YouTube.

For two months, Cruz joined Trump in beating the drum of election fraud until Trump loyalists were deaf to anyone — Republican, Democrat or nonpartisan journalists, not to mention state and federal courts — telling them otherwise.

And yet, Cruz insists he bears no responsibility for the deadly terror attack.

“Not remotely,” he told KHOU Thursday. “What I was doing and what the other members were doing is what we were elected to do, which is debating matters of great import in the chamber of the United States Senate.”

Since the Capitol siege, Cruz has condemned the violence, tweeting after the death of Capitol Police officer Brian Sicknick that “Heidi and I are lifting up in prayer” the officer’s family and demanding the terrorists be prosecuted.

Well, senator, those terrorists wouldn’t have been at the Capitol if you hadn’t staged this absurd challenge to the 2020 results in the first place. You are unlikely to be prosecuted for inciting the riots, as Trump may yet be, and there is no election to hold you accountable until 2024. So, we call for another consequence, one with growing support across Texas: Resign.

This editorial board did not endorse you in 2018. There’s no love lost — and not much lost for Texans needing a voice in Washington, either.

Public office isn’t a college debate performance. It requires representing the interests of Texans. In your first term, you once told reporters that you weren’t concerned about delivering legislation for your constituents. The more you throw gears in the workings of Washington, you said, the more people back home love you. Tell that to the constituents who complain that your office rarely even picks up the phone.

Serving as a U.S. senator requires working constructively with colleagues to get things done. Not angering them by voting against Hurricane Sandy relief, which jeopardized congressional support for Texas’ relief after Harvey. Not staging a costly government shutdown to repeal the Affordable Care Act in 2013 that cost the economy billions. Not collecting more enemies than friends in your own party, including the affable former House Speaker John Boehner who famously remarked: “I get along with almost everyone, but I have never worked with a more miserable son of a bitch in my life.”

We’re done with the drama. Done with the opportunism. Done with the cynical scheming that has now cost American lives.

Resign, Mr. Cruz, and deliver Texas from the shame of calling you our senator.

I wrote this article that was published in the New York Daily News. It could be subtitled: “Lies that the Charter Lobby Says to Protect Its Money Pit.”

Fix this wasteful federal charter-school fund

By Diane Ravitch

New York Daily News

April 28, 2022 at 5:00 am

The federal Charter School Programs (CSP) began in 1995 as a modest program intended to jump-start new, independent, publicly funded schools free of most regulations. The idea was to free educators from bureaucracy and enable them to create laboratories of innovative practices that could be used to improve district schools. At the time, there were only about 100 charter schools in the nation. It was a bold idea. Having worked in the George H.W. Bush administration, I supported it.

Soon, however, entrepreneurs with no background in education at all realized that the new funding stream could present a profit-making opportunity.

Businessman Ron Packard, with experience at McKinsey and Goldman Sachs, saw a chance to use federal funds to help build the highly profitable K12 Inc. online charter chain (now called Stride), which gets dismal academic results but paid him $19 million during a four-year period.

J.C. Huizenga, the Waste Management heir, used federal CSP dollars to launch his for-profit National Heritage Academies, which helped him amass a real estate empire.

Marcus May, now serving time in prison for massive fraud, got substantial funding from the feds for his New Point Education Partner charter schools, some of which he used to buy a yacht and enjoy extravagant vacations.

Marcus May, the CEO of charter school management company Newpoint Education Partners, was found guilty of racketeering and fraud. He was sentenced to 20 years in prison and fined $5 million.

The program that began with only $6 million has grown into a $440 million fund rife with fraud, waste and abuse. Now there are more than 7,000 charters. The Network for Public Education, an organization I lead, prepared a report called “Still Asleep at the Wheel,” which used data from the U.S. Department of Education to show that 12% of the schools that got federal tax dollars never even opened and another 25% closed within a few years, but the federal money often landed in the entrepreneurs’ bank accounts.

Almost three decades later, the Biden administration has proposed modest reforms to restore the program’s original purposes, such as barring for-profit charter operators. The charter industry has reacted to his effort to regulate the program with outrage, falsely claiming that he is trying to shut down charter schools. Rather than supporting reform, commentators from the Washington Post to the far-right-wing Newsmax have pummeled the proposed regulations.

Opinion pieces defending the status quo sound as if they were written by the charter industry’s lobbyists. Their lies have become so bold that the chair of the House Appropriations Committee, Rosa DeLauro, issued a scathing condemnation, lambasting the “unserious efforts and false claims” advanced by the “national trade organization of low-quality for-profit companies,” arguments that according to DeLauro are intended to “shift outrage and attention away from the risky, low-quality for-profit charter schools they represent.”

What these proposed regulations will do is make sure that federal funds do not flow to charter schools operated by for-profit corporations. The for-profit operators can still open schools if their state allows them, but they won’t get federal dollars to do it.

The regulations would give a few bonus (priority) points to charter schools that try to be good neighbors with local public schools and find ways to share ideas and services. Is it a requirement? No. But remember, cooperation between charters and publics was one of the original purposes of the program. It makes sense that both sectors should share best practices.

Contrary to the critics’ claims, the local public schools would not have to be over-enrolled for a charter school to get a grant. The proposed regulations are clear. Over-enrollment is only one of many ways that a new charter school can demonstrate that it is needed.

Some critics claim that the regulations will force new charters to be diverse, but this is not true. Under the changes, charter schools in areas where there is no racial diversity would still be able to get CSP funds. And if you are in a diverse community and you want to open a white-flight charter school you can still do it, but not with federal start-up funds. CSP money should not be used to fund white-flight charters.

Finally, the regulations would require states to supervise how the money is being spent — something that has been sorely lacking. That would be a big improvement over the status quo, which has wasted a billion dollars since 1995 on schools that never opened or opened and eventually closed.

Conservatives always prided themselves on being good stewards of tax dollars. There is nothing conservative about refusing to regulate a federal program that hands over $440 million a year to entrepreneurs and grifters without oversight.

Ravitch is president of the Network for Public Education, a nonprofit nonpartisan organization that exists to support and improve public schools. An education historian recently retired from New York University, she served as assistant secretary of education for research under U.S. Secretary of Education Lamar Alexander.

Mercedes Schneider writes here about an outrageous financial scam in Wisconsin and Minnesota that was inflicted on members of the Hmong community.

The Securities and Exchange Commission announced charges against a Hmong woman who had made extravagant promises to investors, then defrauded them.

On April 13, 2022, the Securities and Exchange Commission (SEC) filed charges against Wisconsin resident, Kay Yang, for “conduct[ing] a fraudulent investment scheme targeting members of the Hmong-American communities in Wisconsin and Minnesota.”

Schneider goes into the details, and she points out that the same financial advisor counseled a Hmong charter school to invest the school’s endowment in a risky fund. Unfortunately, they took her advice, although the school leaders violated Minnesota law by making a risky investment with the school’s funds.

There is another twist in Yang’s story, one that the April 13, 2022, Twin Cities Pioneer Press captures as it alludes to Yang as “having ties to a St. Paul (MN) charter school board”:

Kay Yang has been described in a separate legal matter as a “close personal friend” of Christianna Hang, founder and former superintendent of Hmong College Prep Academy, one of Minnesota’s largest charter schools.

Hang was looking to invest some of the school’s money in May 2019 when Yang referred her to Woodstock Capital LLC, a hedge fund based in London.

That fall, Hang wired Woodstock $5 million in school funds, in violation of state statutes that limit what schools may invest in. Eighteen months later, just $700,000 remained.

The school now is suing Woodstock, alleging its investment either was stolen or badly mismanaged.

Woodstock called the loss a matter of bad timing, saying the coronavirus pandemic made it “possibly the worst time in recent world history for investments such as those made by hedge funds in general.”

Hang and her husband, chief operating officer Pao Yang, resigned from the school at the end of last year with a combined $350,000 in separation payments.

No criminal or civil enforcement charges have been filed in the charter school matter.

The school gambled away its $5 million

Wow.

Through her foolishness, Hang lost $4.3Mof the $5M of HCPA’s money.

The nonprofit, nonpartisan group “In the Public Interest” explains the need to regulate the $440 million federal Charter Schools Program, which is awash in waste, fraud, and abuse.

Did you know that the federal government spends $440 million every year to help start privately run charter schools?

Did you know that some of that money ends up in the hands of people who never actually open schools or open them and quickly close them? And that some goes to charter schools run by for-profit organizations in communities that do not want them.

Some even goes to charter schools with a history of worsening racial segregation and others that exclude, by policy or practice, students with disabilities and students who are English Language Learners.

That’s why it’s a big deal that Department of Education just proposed new rules to reform its funding program.

And why YOU, as an individual and/or an organization, need to send a comment in support of the department’s proposed changes.

Please open this link and comment or attach a letter (the deadline is April 13).

Make sure you write that you support the proposed changes. Try to personalize it as much as you can. Talk about how charter schools are impacting your school district or how they might if they started opening and taking away public school dollars. (Here’s a post from education historian Diane Ravitch with more on what to write.)

If you’re short on time, just say who you are and that you support the changes.

Here are the most important proposed reforms:

  • A proposed charter school would need to divulge how it will impact the local school district, including finances, demographics, and educational needs.
  • A proposed charter school would need to demonstrate how it would serve the local community.
  • Charter schools operated by for-profit organizations would no longer be eligible for funding.

The charter school industry is fighting the new regulations with all they’ve got. Opinion pieces are echoing across right-wing media.

Let the Department of Education know they are supported. Comment before April 13. It will only take a few minutes.

If you need help writing a comment, don’t hesitate to email us.

Keep in touch,

Jeremy Mohler
Communications Director
In the Public Interest

P.S. We have a new website!!!

While Tennessee Governor Bill Lee is eagerly expanding the charter school sector, a state panel decided to close a Memphis charter school because of its leaders “misappropriating” nearly $800,000.

MEMPHIS, Tenn. — Charter revoked. Today a state panel agreed with the Memphis Shelby County School board to pull the plug on a local charter school.

The Memphis Academy of Health Sciences (MAHS) appealed a January 12th decision by the board to revoke the charter and close the school. Today, the appeal was denied, MSCS’ ruling was upheld by the Tennessee Public Charter School Commission.

The decision follows allegations of former school administrators misspending school money, accused of misappropriating nearly $800,000 in funding.

“At least six years of mismanagement, and it’s hard to un-ring that bell,” said a member of the state charter school board.

The parents and students were disappointed but the missing money mattered.

Tom Southern writes in WIRED about the spectacular collapse of Putin’s well-oiled disinformation machine after he ordered the invasion of Ukraine. Very few people—other than a small number of extremists on the right and the left—were fooled by his claims that he was “liberating” Ukraine from its “Nazi” government.

Southern writes:

FOR DECADES NOW, Vladimir Putin has slowly, carefully, and stealthily curated online and offline networks of influence. These efforts have borne lucrative fruit, helping Russia become far more influential than a country so corrupt and institutionally fragile had any right to be. The Kremlin and its proxies had economic holdings across Europe and Africa that would shame some of the smaller 18th-century empires. It had a vast network of useful idiots that it helped get elected and could count on for support, and it controlled much of the day-to-day narrative in multiple countries through online disinformation. And many people had no idea.

While a few big events like the US’ 2016 election and the UK’s Brexit helped bring this meddling to light, many remained unaware or unwilling to accept that Putin’s disinformation machine was influencing them on a wide range of issues. Small groups of determined activists tried to convince the world that the Kremlin had infiltrated and manipulated the economies, politics, and psychology of much of the globe; these warnings were mostly met with silence or even ridicule.

All that changed the moment Russian boots touched Ukrainian soil. Almost overnight, the Western world became overwhelmingly aware of the Kremlin’s activities in these fields, shattering the illusions that allowed Putin’s alternative, Kremlin-controlled information ecosystem to exist outside its borders. As a result, the sophisticated disinformation machinery Putin spent decades cultivating collapsed within days.

RUSSIA’S NETWORK OF influence was as complex as it was sprawling. The Kremlin has spent millions in terms of dollars and hours in Europe alone, nurturing and fostering the populist right (Italy, Hungary, Slovenia), the far right (Austria, France, Slovakia), and even the far left (Cyprus, Greece, Germany). For years, elected politicians in these and other countries have been standing up for Russia’s interests and defending Russia’s transgressions, often peddling Putin’s narratives in the process. Meanwhile, on televisions, computers, and mobile screens across the globe, Kremlin-run media such as RT, Sputnik, and a host of aligned blogs and “news” websites helped spread an alternative view of the real world. Though often marginal in terms of reach in and of themselves (with some notable exceptions, such as Sputnik Mundo), they performed a key role in spreading disinformation to audiences in and outside of Russia.

Please open the link and finish this important article.

Pro Publica warns about the fake news and doctored videos that are circulating on the Internet. While some are pro-Ukrainian, most are designed to support Putin’s narrative. The famous Russian troll farm that was active on behalf of Trump in 2016, ProPublica says, is now busily creating phony “fact checks” and disinformation.

It begins:

On March 3, Daniil Bezsonov, an official with the pro-Russian separatist region of Ukraine that styles itself as the Donetsk People’s Republic, tweeted a video that he said revealed “How Ukrainian fakes are made.”

The clip showed two juxtaposed videos of a huge explosion in an urban area. Russian-language captions claimed that one video had been circulated by Ukrainian propagandists who said it showed a Russian missile strike in Kharkiv, the country’s second-largest city.

But, as captions in the second video explained, the footage actually showed a deadly arms depot explosion in the same area back in 2017. The message was clear: Don’t trust footage of supposed Russian missile strikes. Ukrainians are spreading lies about what’s really going on, and pro-Russian groups are debunking them. (Bezsonov did not respond to questions from ProPublica.)

In another post, ProPublica reports that the Russian troll farm is branding current events happening in Ukraine as “fake” and “Ukrainian propaganda.” The same sources are creating phony videos and branding them as Ukrainian propaganda. Experts say a recent wave of pro-Putin disinformation is consistent with the work of Russia’s Internet Research Agency, a network of paid trolls who attempted to influence the 2016 presidential election...

The pro-Putin network included roughly 60 Twitter accounts, over 100 on TikTok, and at least seven on Instagram, according to the analysis and removals by the platforms. Linvill and Warren said the Twitter accounts share strong connections with a set of hundreds of accounts they identified a year ago as likely being run by the IRA. Twitter removed nearly all of those accounts. It did not attribute them to the IRA...

The most successful accounts were on TikTok, where a set of roughly a dozen analyzed by Clemson researchers and ProPublica racked up more than 250 million views and over 8 million likes with posts that promoted Russian government statements, mocked President Joe Biden and shared fake Russian fact-checking videos that were revealed by ProPublica and Clemson researchers earlier this week. On Twitter, they attacked jailed Russian opposition leader Alexei Navalny and blamed the West for preventing Russian athletes from competing under the Russian flag in the Olympics...

The Internet Research Agency is a private company owned by Yevgeny Prigozhin, a Russian entrepreneur known as “Putin’s Chef.” Prigozhin is linked to a sprawling empire ranging from catering services to the military mercenary company Wagner Group, which was reportedly tasked with assassinating President Volodymyr Zelenskyy. The IRA launched in St. Petersburg in 2013 by hiring young internet-savvy people to post on blogs, discussion forums and social media to promote Putin’s agenda to a domestic audience. After being exposed for its efforts to influence the 2016 U.S. election, the IRA attempted to outsource some of its English-language operations to Ghana ahead of 2020. Efforts to reach Prigozhin were unsuccessful.

But it never stopped its core work of influencing Russian-speaking audiences. The IRA is part of a sprawling domestic state propaganda operation whose current impact can be seen by the number of Russians who refuse to believe that an invasion has happened, while asserting that Ukrainians are being held hostage by a Nazi coup.

The following is an excerpt from historian Heather Cox Richardson’s blog. The rest of the post is about the January 6 Commission’s efforts to get to the bottom of Trump’s role in the insurrection.

On July 27, 2016, even before the Republican National Committee changed the party’s platform to weaken the U.S. stance in favor of Ukraine in its struggle to fight off Russia’s 2014 invasion, U.S. News & World Report senior politics writer David Catanese noted that senior security officials were deeply concerned about then-candidate Trump’s ties to Russia.

July 27 was the day Trump referred at a news conference to his opponent and then–secretary of state Hillary Clinton’s emails that were not turned over for public disclosure from her private server and said: “Russia, if you’re listening, I hope you’re able to find the 30,000 emails that are missing, I think you will probably be rewarded mightily by our press.” (We know now that Russian hackers did, in fact, begin to target her accounts on or around that day.)

Former secretary of defense Leon Panetta, who served under nine presidents, told Catanese that Trump was “a threat to national security,” not only because of his call for help from Russia, but because of his suggestion that he would abandon the North Atlantic Treaty Organization (NATO) if he were elected and, as Catanese put it, “his coziness toward Russian President Vladimir Putin.”

Former National Security Advisor Thomas E. Donilon also expressed concern over the hack of the Democratic National Committee by Russian operatives, and said that such an attack mirrored similar attacks in Estonia, Georgia, and, most prominently, Ukraine. He called on officials to confront Russian leaders publicly.

Cybersecurity expert Alan Silberberg told Catanese that Trump looked like an ally of Putin. “The Twitter trail, if you dig into it over the last year, the Russian media is mirroring him, putting out the same tweets at almost the same time,” Silberberg said.

“You get the sense that people think it’s a joke,” Panetta said. “The fact is what he has said has already represented a threat to our national security.”

Putin’s attempt to destroy democracy in Ukraine militarily has invited a reexamination of the cyberattacks, disinformation, division, attacks on opponents, and installation of puppet leaders he used to gain control of Ukraine before finally turning to bombs. This reexamination, in turn, has led journalists to note that those same techniques have poisoned politics in countries other than Ukraine.

Over the weekend, British investigative journalist Carol Cadwalladr warned that we are 8 years into “The first Great Information War,” a war sparked by Putin’s fury at the removal of his puppet Viktor Yanukovych in February 2014 from the presidency of Ukraine. Putin set out to warp reality to confuse both Ukrainians & the world. The “meddling” we saw in the 2016 election was not an attempt to elect Trump simply so he would end the sanctions former president Barack Obama had imposed on Russia in 2014 after it invaded Ukraine. It was an attempt to destabilize democracy. “And it’s absolutely crucial that we now understand that Putin’s attack on Ukraine & the West was a JOINT attack on both,” she wrote.

Today in The Guardian, political and cultural observer Rebecca Solnit wrote a piece titled “It’s time to confront the Trump-Putin network.”

A reader sent this Wikipedia description of Senator Scott, who is apparently interested in winning the support of the far-right faction of the Republican Party in 2024, which has no scruples:

In 1987, after serving in the United States Navy and becoming a law firm partner, he co-founded Columbia Hospital Corporation. Columbia later merged with another corporation to form Columbia/HCA, which eventually became the nation’s largest private for-profit health care company.[6] Scott was pressured to resign as chief executive of Columbia/HCA in 1997. During his tenure as chief executive, the company defrauded Medicare, Medicaid and other federal programs. The Department of Justice ultimately fined the company $1.7 billion in what was at the time the largest health care fraud settlement in U.S. history.[7][8]

Bob Shepherd, a frequent contributor to the blog, is an education polymath. He has authored textbooks, written assessments, developed curriculum, and was most recently a classroom teacher in Florida. He has a long history in the education industry.

He explains here why standardized testing today is neither valid nor reliable.

He begins:

The dirty secret of the standardized testing industry is the breathtakingly low quality of the tests themselves. I worked in the educational publishing industry at very high levels for more than twenty years. I have produced materials for all the major textbook publishers and most of the standardized test publishers, and I know from experience that quality control processes in the standardized testing industry have dropped to such low levels that the tests, these days, are typically extraordinarily sloppy and neither reliable nor valid. They typically have not been subjected to anything like the validation and standardization procedures used, in the past, with intelligence tests, the Iowa Test of Basic Skills, and so on. The mathematics tests are marginally better than are the tests in ELA, US History, and Science, but they are not great. The tests in English Language Arts are truly appalling…

The Common Core tests, he says, are especially useless.

They are almost entirely content free. They don’t assess what students ought to know. Instead, they test, supposedly, a lot of abstract “skills”–the stuff on the Gates/Coleman Common [sic] Core [sic] bullet list, but as we shall see below, they don’t even do that.

Open the link and read on. This is a very important exposé by an expert.