Archives for category: Fraud

Peter Goodman is a long-time observer of education politics in New York State and New York City.

In this post, he asks a reasonable question: Why, at a time of fiscal stringency and uncertainty, is the Board of Regents of New York State rubber-stamping the expansion of charter schools?

Charter schools, as he shows, cherry-pick their students to inflate their test scores. Despite state law, their doors are not open to all.

He writes:

If you look at charter school data virtually every charter school enrolls fewer than the “comparable” percentages required in the law. The reason is abundantly clear, students with disabilities and English language learners frequently have lower standardized test scores, impact the charter renewal process and are more costly to educate, i.e., lower class size = more teachers.

The Buffalo charter was out of compliance with state law. Why did the Board of Regents approve a five-year renewal of a charter in Buffalo when the Regent from Buffalo proposed a three-year renewal? Buffalo schools face a large deficit, but its charters are on track to take $108 million out of the city’s public budget.

Why did the Board of Regents approve the renewal of a low-performing charter school in the Bronx?

Goodman writes:

Later in the [Regents’] meeting three New York City charter schools were on the agenda, one of the schools wanted to add high school grades; although there is a moratorium on the creation of new charter schools State Ed staff interpreted the law as allowing grade expansion, in my opinion, an attempt to circumvent the law and should have not been allowed by the state.

The math scores in the school were in the “far below standard” category, ninety percent of teachers were “teaching out of their certification area,” the state average is eleven percent and the register in the sixth, seventh and eighth grade, was sharply reduced, from 71 (6th grade), to 46 (7th grade) and 29 (8th grade): what happened to the kids? In addition the school SWD and ELL students are far below the district averages.

Why did the NYC Department of Education approve the application? Why did the SED approve the application?

The school has a lobbyist who was a college roommate of Assembly Speaker Carl Heastie. I’m sure that’s only a coincidence. btw, who paid the lobbyist?

In spite of objections from some Regents members the SED lawyer bundled all three schools together instead of decoupling and voting separately.

Regent Cashin made a motion: a moratorium on approval of new charters and the grade expansion of existing charter schools for the remainder of the COVID emergency. She explained that with sharp cuts in district budgets, with districts facing layoffs and disruptions, to transfer money from public schools budgets to charter school budgets was unconscionable. The SED lawyer ruled her motion was “out of order.”

Any member of the Board can make a motion at any time. The Board should vote on whether to place the motion on the agenda. The Board “owns” the motion, not the lawyer, who is not a Board member.

If the lawyer meant the motion was not “germane” he was still wrong. If he was serving as a parliamentarian he gives advice to the chair, he does not participate in the debate, or make determinate decisions.

The whole business had what Goodman called “a noxious aroma,” a polite way of saying that the Regents’ rush to approve charters of dubious quality in the midst of a fiscal crisis stinks to high heaven.

Why incentivize privately run charters to divert funding and the students of their choice from the public schools.

Why are the Regents betraying the state’s public schools?

That noxious aroma is the smell that is released when politics seeps into decisions about school funding. Someone’s friends are being taken care of, at the expense of the public schools.

Peter Greene explains here how Trump came to Betsy DeVos’ rescue when Congress tried to stop her from punishing students who had been scammed by predatory colleges.

DeVos wanted to withdraw an Obama-era program that helped students who incurred debts to fraudulent colleges. A court intervened to stop her. DeVos considers the students buried by debt to be free-loaders. Congress rebuked DeVos in a rare bipartisan vote. Trump issued his very first veto, simultaneously supporting DeVos and rejecting the thousands of students who had been defrauded.

This is outrageous.

Back to court.

In 2016, John Oliver presented a shocking episode about charter schools.

It has been viewed by 12 million people.

Oliver was the first and possibly the only major media figure to discover that charter schools had some serious problems.

Some close in the middle of the year.

Watch his clip with John Kasich comparing education to getting more pepperoni on a slice of pizza.

Watch his clip of a charter operator quoting Scripture to excuse her criminal behavior.

Watch the clip of the owner of the for-profit White Hat charter chain, who says that “education is first, last, and always a business.”

Give John Oliver credit for being first to expose waste, fraud, and abuse in a new and very profitable industry.

The advocacy group called Public Funds a Public Schools gathered a useful archive of research studies of vouchers.

The studies were conducted by nonpartisan academic and federal researchers.

The findings are broadly congruent.

Voucher schools are academically inferior to public schools.

Voucher schools divert funding from public schools, which enroll most children.

Voucher programs lack accountability.

The absence of oversight promotes fraud and corruption.

Voucher programs do not help students with disabilities.

Voucher schools are allowed to discriminate against certain groups of students and families.

Voucher programs exacerbate segregation.

Voucher programs don’t work, don’t improve education, and have multiple negative effects.

Robert Shepherd writes comments on the blog frequently, and he also writes his own blog. He is a recently retired teacher in Florida who spent decades as a writer, editor, and developer of curriculum and assessments in the education publishing industry.

Since he has often expresssed his views of the current occupant of the White House, I invited him to assemble a Trump glossary.

He did.

Some people respond to crises with focused, quiet intensity. Not our 73-year-old President in the orange clown makeup. He can’t stop tweeting and blabbering randomly and profusely. And what does he tweet and blab about? Well, he suggests holding events at his resorts, he attacks perceived enemies, and he praises himself. And then on Memorial Day, while others are laying a wreath on the grave of Uncle Javier who died in Vietnam, Trump accuses a journalist of murder and goes golfing.

This demonstrated lack of concern for others (for victims and survivors of natural disasters and war and disease, for example) shows that Donald Trump doesn’t give a microbe on a nit on a rat’s tushy about anything but Donald Trump. Obviously, he cares only about money (sorry, Evangelicals, his only God is Mammon) and about himself.

But hey, Trump’s a romantic figure, a man in love. This must be his appeal. And when he speaks, in his toddler English, about the love of his life, Donald Trump, you can be certain that he will use terms like “a winner,” “the greatest,” “the best,” and so on. He will tell you about his “great genes” and his uncle who was “a super genius [which is a lot better than an ordinary genius] at MIT.”

OK, over the years, I’ve had my disagreements with the man to whom I variously refer as Moscow’s Asset Governing America (MAGA); Don the Con; IQ 45; The Don, Cheeto “Little Fingers” Trumpbalone; Vlad’s Agent Orange; the Iota; our Child-Man in the Promised Land; our Vandal in Chief; Dog-Whistle Don; The Man with No Plan and the Tan in the Can; President Pinocchio; Trump on the Stump with His Chumps; Jabba the Trump; Don the Demented; King Con; Donnie DoLittle; the Stabul Jenius; Scrotus Potus; The Mornavirus trumpinski orangii; Ethelorange the Unready; our First Part-time President, now become, in his nonresponse to the pandemic, Donnie Death. However, I do agree with him that in descriptions of Trump, SUPERLATIVES ARE IN ORDER.

The British writer Nate White wisely observed, in a post that Diane Ravitch shared on her indispensable blog, that Donald Trump’s “faults are fractal: even his flaws have flaws.” Trump is a one-person compendium of human vices and failings. In this respect, truly, HE HAS NO EQUAL. And so I offer here an ABECEDARIUM of adjectives, each of which demonstrably describes the occupant of the now Offal Office in the now Whiter House, the fellow who has shamed us before the world, made us a laughing stock, and led the now Repugnican Party in an unprecedented Limbo Dance (“how low, how low, how low can we go?).

Trump is. . . .

abhorrent, amoral, anti-democratic, arrogant, authoritarian, autocratic, avaricious, backward, base, benighted, bloated, blubbering, blundering, bogus, bombastic, boorish, bullying, bungling, cheap, childish, clownish, clueless, common, confused, conniving, corrupt, cowardly, crass, creepy, cretinous, criminal, crowing, crude, cruel, dangerous, delusional, demagogic, depraved, devious, dim, disgraceful, dishonest, disloyal, disreputable, dissembling, dog-whistling, doltish, dull, elitist, embarrassing, erratic, fascist, foolish, gauche, gluttonous, greedy, grudging, hate-filled, hateful, haughty, heedless, homophobic, humorless, hypocritical, idiotic, ignoble, ignominious, ignorant, immature, inarticulate, indolent, inept, inferior, insane, intemperate, irresponsible, kakistocratic, kleptocratic, laughable, loathsome, loud-mouthed, low-life, lying, mendacious, meretricious, monstrous, moronic, narcissistic, needy, oafish, odious, orange, outrageous, pampered, pandering, perverse, petty, predatory, puffed-up, racist, repulsive, rude, sanctimonious, semi-literate, senile, senseless, sexist, shady, shameless, sheltered, slimy, sluglike, sniveling, squeamish, stupid, swaggering, tacky, thick, thin-skinned, thuggish, toadying, transphobic, trashy, treasonous, twisted, ugly, unappealing, uncultured, uninformed, unprincipled, unread, unrefined, vain, venal, vicious, vile, and vulgar.

Aside from those peccadilloes (we all have our faults, don’t we?), I have no problem with the guy.

ProPublica dug up a shameful story, just one more for an era of shameful stories. I wrote previously that the Trump presidency will make Teapot Dome look like a tea party. For those of you who don’t know, Teapot Dome was taught in the textbooks as the prime example of political corruption.

The following is a textbook case of profiteering at the expense of vulnerable people.

A former White House aide won a $3 million federal contract to supply respirator masks to Navajo Nation hospitals in New Mexico and Arizona 11 days after he created a company to sell personal protective equipment in response to the coronavirus pandemic.

Zach Fuentes, President Donald Trump’s former deputy chief of staff, secured the deal with the Indian Health Service with limited competitive bidding and no prior federal contracting experience.

The IHS told ProPublica it has found that 247,000 of the masks delivered by Fuentes’ company — at a cost of roughly $800,000 — may be unsuitable for medical use. An additional 130,400, worth about $422,000, are not the type specified in the procurement data, the agency said.

What’s more, the masks Fuentes agreed to provide — Chinese-made KN95s — have come under intense scrutiny from U.S. regulators amid concerns that they offered inadequate protection.

TIME magazine has a depressing expose about the $160 billion in tax breaks that the CARES Act awards to the real estate industry, including the family business of Jared Kushner.

The CARES Act is the coronavirus relief package of $2 trillion intended to save mom-and-pop businesses and other small businesses at risk of failing due to the prolonged shutdown.

When Democrats realized that the real estate moguls had pulled a fast one, they wrote repeal legislation that has no chance of passing in the Senate.

TIME’s analysis of drafts of the bills and lobbying disclosures, along with interviews with half a dozen staffers and lobbyists, show that the provisions originated with Senate Finance Committee Chairman Chuck Grassley’s office, which was working with other Republicans on the committee, and were lobbied for heavily by the real estate industry, including a prominent real estate trade group, of which Jared Kushner’s family’s company is a member…

Jared Kushner’s family’s company, Kushner Companies, is a member of NMHC’s advisory committee, according to the organization’s website. That membership appears to be the lowest level of membership and requires an annual fee of $5,000. The NMHC website also lists Avi Lebor, Kushner Companies’ director of acquisitions, as the contact for the company on the membership directory. Lebor was in prison with Kushner’s father and joined Kushner Companies after they were both released, according to Bloomberg. The Trump Organization, which will also benefit from the tax provisions, is not publicly listed as a member of NMHC.

War profiteers.

This story was first reported in the Los Angeles Education Examiner by Sara Roos.

I mistakenly attributed the initial reporting to parent advocate Carl Petersen .

Roos reported that Superintendent Austin Beutner, a former investment banker, has brought management consultants Bain and Company to provide strategic guidance to the district.

With Governor Cuomo assigning the task of “reimagining” education in New York, and Austin Beutner calling on Bain and Company, it bears mentioning that none of these people are educators.

Los Angeles has an elected school board.

Why is the superintendent turning to a management consulting business with no experience in education to guide the district in these troubled times? Why isn’t the school board, which is Beutner’s employer, making the strategic decisions?

This is “disaster capitalism” (Naomi Klein’s apt term) at its worst. This is another instance of the Pandemic Shock Doctrine.

Beutner works for the board. They should stop him before he outsources the district management to unaccountable and unqualified “experts.”

Shawgi Tell, professor at Nazareth College in New York, describes the multiple ways in which corporate charter chains are cashing in during the pandemic.

He begins:

While private businesses like non-profit and for-profit charter schools have been seizing enormous sums of public money for decades,1 they continue to seize hundreds of millions of public dollars during the “COVID Pandemic”—a move that further undermines the nation’s public education system and economy.

The latest example of this massive transfer of public funds to segregated charter schools involves $200 million set aside a few weeks ago for large corporate charter school chains by billionaire Betsy DeVos, U.S. Secretary of Education. This pay-the-rich scheme is taking place in the context of more brutal cuts to public school budgets around the country.

On top of this, in the current crisis, which is worse than the 2008 economic collapse engineered by Wall Street, charter school advocates are also taking virtue-signaling to new heights, casually and repeatedly lauding themselves as saviors and as “tried-and-true online experts,” even though many have ironically(?) turned away from notoriously poor-performing cyber charter schools in this disruptive transition to inefficient digital “communication” at all levels of education. Most people have simply not turned to online charter schools during this crisis. They recognize that online charter schools are subpar and not the way forward. Even well-funded organizations that support charter schools, like the neoliberal Center for Research on Education and Outcomes (CREDO) at Stanford University, bemoan the persistently abysmal performance of cyber charter schools.

The conceited charter school sector believes, however, that this virtue-signaling will suddenly cause people to forget that charter schools are notorious for all sorts of corruption, fraud, and scandal. While the “COVID Pandemic” has overwhelmed many, people have not spontaneously forgotten the poor track record of cyber charter schools or brick-and-mortar charter schools.

The necessity today is for governments at all levels to cease funneling much-needed public funds to private business like charter schools and to direct these funds to public schools that serve 90% of the nation’s students. Public funds belong to public schools and charter schools are not public schools. There is no such thing as a public charter school, especially given the fact that charter schools are now openly claiming to be small private businesses so as to obtain public Small Business Administration money (from the CARES Act) that regular public schools, precisely because they are actually public, do not have access to.

Read on.

As the old saying goes, better to steal a million dollars than to steal a loaf of bread. The former is smart thinking, the latter is a crime.

In Livermore, California, the leaders of a charter chain were charged with securities fraud. But they got off without any criminal charges or jail time.

When you read this story, you realize what clever guys they were to figure out such a complex scheme. You have to be an accountant to follow the money.

The U.S. Securities and Exchange Commission has charged former CEO of the Tri-Valley Learning Corporation, Bill Batchelor, with allegedly misleading investors when acquiring a $25 million bond for Livermore charter schools.

Batchelor and John Zukoski, the former director of finance for the schools, were charged with a violation of the antifraud provision of the Securities Act of 1933. They were accused of helping prepare and sign a bond-offering document of $25.54 million to fund the purchase and renovation of a Livermore building to house two schools in May 2015. One was a charter school run by the Tri-Valley Learning Corporation (TVLC) and the other was a private school, which Batchelor also managed.

But according to the complaint by the Securities and Exchange Commission filed in the U.S. District Court of Northern California and made public this week, both men were aware that TVLC had “serious cash flow problems” that would negatively affect the corporation’s ability to make payments on the bonds. The commission also alleges that TVLC was delinquent on payments owed to vendors, had other debt from a private loan that was overdue by a year and had drawn a bank line of credit to its limit in a previous bond.

But, the bond document failed to disclose that TVLC was in “serious financial distress,” and both Batchelor and Zukoski signed documents stating the material had no misrepresentations or omissions.

Without admitting any wrongdoing, Batchelor and Zukoski agreed to not participate in any future municipal debt offerings. Batchelor agreed to pay a $20,000 penalty, and Zukoski a $15,000 penalty. Both settlements are subject to a court approval, according to the Securities and Exchange Commission.

TVLC and California Preparatory Academy, the private high school school, went before the Alameda County Board of Supervisors seeking approval for a $30 million municipal bond to finance the purchase of a new high school building at 3090 Independence Drive in May 2015.

The bond was approved, and the Livermore Valley Charter Prep high school and the private school ended up sharing the same space on Independence Drive in Livermore.