Archives for category: Fraud

 

Will Huntsberry of the Voice of San Diego has covered the scandals blighting California’s Charter Industry, especially the A3 online scandal, the largest in American history.

In this article, he goes straight to the heart of the scandals: the flawed audit process.

California lawmakers created a system that places just one process at the forefront of detecting fraud and mismanagement in the state’s schools: a yearly audit, conducted by a “state-approved,” “independent” auditor, according to the Department of Education.

But these auditors are not independent, in so much as they are hired and fired at will by the schools they are auditing. The term state-approved is also something of a misnomer. To qualify as an approved firm, the State Controller’s Office must only verify that the potential auditors are accountants in good standing with the California Board of Accountancy.

No special training or vetting required.

The audits themselves are also not designed to dig deeply into a school’s finances, according to transcripts from a grand jury proceeding into an alleged $80 million charter scam obtained by Voice of San Diego.

A3 Education operated 19 online charter schools around the state. The schools enrolled thousands of students, some real and some fake, prosecutors say. Two men at the top of the alleged scheme funneled $80 million out of the public education system and into companies they controlled, prosecutors say.

Even though few other people ever existed on the companies’ payrolls besides the owners, auditors following standard procedures missed that part of the alleged scam, as well as others, according to the grand jury transcripts.

“They’re not designed to catch fraud at all,” Michael Fine, who runs a state fiscal watchdog agency called the Fiscal Crisis Management and Assistance Team, told Voice of San Diego. “To have a certain confidence level in the numbers, they do some testing of transactions. But that testing is fairly limited.”

Fine said there’s another critical element that could limit the auditors’ effectiveness: They rely on what school management teams show them, rather than getting much behind the numbers.

That makes no sense. Ask the folks in charge of a massive scam to show you the numbers they choose to show.

California and charter fraud are becoming synonymous.

 

Jan Resseger is a profound thinker and a clear writer. I love reading what she writes. Jan is one of the Resistance leaders in my new book SLAYING GOLIATH: THE PASSIONATE RESISTANCE TO PRIVATIZATION AND THE FIGHT TO SAVE AMERICA’S PUBLIC SCHOOLS.

In this post, she explains to Democratic candidates why they should not waffle in their support for public schools.

Her explanation is a rallying cry for educators and parents. Print it out and pin it on the bulletin board next to your computer or tape it to your filing cabinet. Read it over and think about it.

She writes:

Here are my seven reasons for believing Democrats running for President ought to express strong support for public schools and opposition to charter schools:

First:   The scale of the provision of K-12 education across our nation can best be achieved by the systemic, public provision of schools.  Rewarding social entrepreneurship in the startup of one charter school at a time cannot possibly serve the needs of the mass of our children and adolescents. In a new, September 2019 enrollment summary, the National Center for Education Statistics reports: “Between around 2000 and 2016, traditional public school, public charter school, and homeschool enrollment increased, while private school enrollment decreased… Traditional public school enrollment increased to 47.3 million (1 percent increase), charter school enrollment grew to 3.0 million students (from 0.4 million), and the number of homeschooled students nearly doubled to 1.7 million. Private school enrollment fell 4 percent, to 5.8 million students.”

Second:   Public schools are our society’s most important civic institution. Public schools are not perfect, but they are the optimal way for our very complex society to balance the needs of each particular child and family with a system that secures the rights and addresses the needs of all children. Because public schools are responsible to the public, it is possible through elected school boards, open meetings, transparent record keeping and redress through the courts to ensure that traditional public schools provide access for all children. While our society has not fully realized justice for every child in the public schools, it is by striving systemically to improve access and opportunity in the public schools that we have the best chance of securing the rights of all children.

Third:   Charter schools are parasites sucking essential dollars from the public school districts where they are located. The political economist Gordon Lafer explains that the expansion of charter schools cannot possibly be revenue neutral for the host school district losing students to charter schools: “To the casual observer, it may not be obvious why charter schools should create any net costs at all for their home districts. To grasp why they do, it is necessary to understand the structural differences between the challenge of operating a single school—or even a local chain of schools—and that of a district-wide system operating tens or hundreds of schools and charged with the legal responsibility to serve all students in the community.  When a new charter school opens, it typically fills its classrooms by drawing students away from existing schools in the district…  If, for instance, a given school loses five percent of its student body—and that loss is spread across multiple grade levels, the school may be unable to lay off even a single teacher… Plus, the costs of maintaining school buildings cannot be reduced…. Unless the enrollment falloff is so steep as to force school closures, the expense of heating and cooling schools, running cafeterias, maintaining digital and wireless technologies, and paving parking lots—all of this is unchanged by modest declines in enrollment. In addition, both individual schools and school districts bear significant administrative responsibilities that cannot be cut in response to falling enrollment. These include planning bus routes and operating transportation systems; developing and auditing budgets; managing teacher training and employee benefits; applying for grants and certifying compliance with federal and state regulations; and the everyday work of principals, librarians and guidance counselors.” “If a school district anywhere in the country—in the absence of charter schools—announced that it wanted to create a second system-within-a-system, with a new set of schools whose number, size, specialization, budget, and geographic locations would not be coordinated with the existing school system, we would regard this as the poster child of government inefficiency and a waste of tax dollars. But this is indeed how the charter school system functions.”

Fourth:   While some predicted the expansion of charter schools would improve academic achievement on a broad scale, children in traditional public schools and charter schools perform about the same.  According to the new report from the National Center for Education Statistics, “Academic Performance: In 2017, at grades 4 and 8, no measurable differences in average reading and mathematics scores on the National Assessment of Educational Progress (NAEP) were observed between students in traditional public and public charter schools.”

Fifth:   Opposing for-profit charter schools misses the point.  In most states, charter schools themselves must be nonprofits, but the nonprofit boards of directors of these schools may hire a for-profit management company to operate the school. Two of the most notorious examples of the ripoffs of tax dollars in nonprofit (managed-for-profit) charter schools were in my state, Ohio. The late David Brennan, the father of Ohio charter schools, set up sweeps contracts with the nonprofit schools managed by his for-profit White Hat Management Company.  The boards of these schools—frequently people with ties to Brennan and his operations—turned over to White Hat Management more than 90 percent of the dollars awarded by the state to the nonprofit charters. These were secret deals. Neither the public nor the members of the nonprofit charter school boards of directors could know how the money was spent; nor did they know how much profit Brennan’s for-profit raked off the top. Then there was Bill Lager, the founder of Ohio’s infamous Electronic Classroom of Tomorrow—technically a nonprofit.  All management of the online charter school and the design and provision of its curriculum were turned over to Lager’s privately owned, for-profit companies—Altair Management and IQ Innovations. ECOT was shut down in 2018 for charging the state for thousands of students who were not really enrolled. The state of Ohio is still in court trying to recover even a tiny percentage of Lager’s lavish profits.

Sixth:   Malfeasance, corruption, and poor performance plague charter schools across the states. Because charter schools were established by state law across the 45 states where charters operate, and because much of the state charter school enabling legislation featured innovation and experimentation and neglected oversight, the scandals fill local newspapers. The Network for Public Education tracks the myriad examples of outrageous fraud and mismanagement by charter schools.  Because neoliberal ideologues and the entrepreneurs in the for-profit charter management companies regularly donate generously to the political coffers of state legislators—the very people responsible for passing laws to regulate this out-of-control sector, adequate oversight has proven impossible.

Seventh:   The federal Charter Schools Program should be shut down immediately. Here is a brief review of the Network for Public Education’s findings in last spring’s Asleep at the Wheel report.  A series of federal administrations—Clinton, Bush, Obama, and Trump have treated the federal Charter Schools Program (part of the Office of Innovation and Improvement in the U.S. Department of Education) as a kind of venture capital fund created and administered to stimulate social entrepreneurship—by individuals or big nonprofits or huge for-profits—as a substitute for public operation of the public schools. Since the program’s inception in 1994, the federal Charter Schools Program (CSP) has awarded $4 billion in federal tax dollars to start up or expand charter schools across 44 states and the District of Columbia, and has provided some of the funding for 40 percent of all the charter schools across the country. The CSP has lacked oversight since the beginning, and during the Obama and Trump administrations—when the Department of Education’s own Office of Inspector General released a series of scathing critiques of the program—grants have been made based on the application alone with little attempt by officials in the Department of Education to verify the information provided by applicants. The Network for Public Education found that the CSP has spent over a $1 billion on schools that never opened or were opened and subsequently shut down: “The CSP’s own analysis from 2006-2014 of its direct and state pass-through funded programs found that nearly one out of three awardees were not currently in operation by the end of 2015.”

Last June in The American Prospect, Robert Kuttner defined the political philosophy known as neoliberalism and showed how this kind of thinking has driven privatization across many sectors previously operated, for the public good, by government: “Since the late 1970s. we’ve had a grand experiment to test the claim that free markets really do work best… (I)n the 1970s, libertarian economic theory got another turn at bat…  Neoliberalism’s premise is that free markets can regulate themselves; that government is inherently incompetent, captive to special interests, and an intrusion on the efficiency of the market; that in distributive terms, market outcomes are basically deserved; and that redistribution creates perverse incentives by punishing the economy’s winners and rewarding its losers. So government should get out of the market’s way.”

For three decades, neoliberalism has reigned in education policy. The introduction of the neoliberal ideal of competition—supposedly to drive school improvement—through vouchers for private school tuition and in the expansion of charter schools has become acceptable to members of both political parties.

The late political philosopher Benjamin Barber explains elegantly and precisely what is wrong with neoliberal thinking in general. I think his words apply directly to what has been happening as charter schools have been expanded to more and more states. The candidates running for President who prefer to waffle on the advisability of school privatization via charter schools ought to consider Barber’s analysis:

“Privatization is a kind of reverse social contract: it dissolves the bonds that tie us together into free communities and democratic republics. It puts us back in the state of nature where we possess a natural right to get whatever we can on our own, but at the same time lose any real ability to secure that to which we have a right. Private choices rest on individual power… personal skills… and personal luck.  Public choices rest on civic rights and common responsibilities, and presume equal rights for all.  Public liberty is what the power of common endeavor establishes, and hence presupposes that we have constituted ourselves as public citizens by opting into the social contract. With privatization, we are seduced back into the state of nature by the lure of private liberty and particular interest; but what we experience in the end is an environment in which the strong dominate the weak… the very dilemma which the original social contract was intended to address.” (Consumed, pp. 143-144)

 

John Cassidy of The New Yorker wrote about the indictment and arrest of two men who were leaving the country with one-way tickets. Photographs of these men have been published showing them having a meeting at the White House with Trump and on another occasion, dining with Rudy G. at a Trump hotel and also a photo of them with Don Jr.

Cassidy writes:

What’s the most arresting detail that’s been unearthed so far in the unfolding scandal of Rudy Giuliani and the Ukrainian grifters? The more you delve into the story, the more it reads like something Elmore Leonard and Carl Hiaasen cobbled together after a guys’ getaway to Kiev. To make the selection a bit easier, let’s make it a multiple-choice question:

(a) Igor Fruman and Lev Parnas, whom the Wall Street Journalpolitely describes as “Florida businessmen who are U.S. citizens born in former Soviet republics,” were both carrying one-way tickets out of the country when federal agents arrested them at Dulles International Airport, on Wednesday night, and charged them with breaking campaign-finance laws by disguising donations from foreign entities.

(b) Parnas, a forty-seven-year-old native of Ukraine who arrived in the United States in 1976, owns a company called Fraud Guarantee. Evidently, it’s some sort of fraud-prevention advisory service. According to the Times, this company paid Giuliani hundreds of thousands of dollars for “business and legal advice.”

(c) According to Buzzfeed News, Parnas has in the past “worked for three stockbrokerages that were later expelled by regulators for fraud and other violations—though he was never individually charged—and racked up nine court judgments for failing to pay loans and other debts.”

(d) Parnas once tried to produce a movie called “Anatomy of an Assassin.” It didn’t go well. “Mr. Parnas is a con man, he is a crook,” Dianne Pues, a New Jersey woman who invested in the project, toldthe Miami Herald. “He conned us from day one. . . . He financially ruined us.”

(e) As he travelled around doing whatever he did, Parnas didn’t stint on expenses. “There were bills running to hundreds of dollars at exclusive restaurants such as Novikov in London and BLT Prime in Washington,” Buzzfeed reported. “During one of his many trips to the Ukrainian capital of Kyiv, there was a $657 charge at Tootsie, the popular strip club in the heart of the city.”

(f) Fruman, a fifty-three-year-old native of Belarus, apparently runs an import-export business that ships goods to and from Ukraine. He also reportedly owned, or owns, a beach club in the Black Sea city of Odessa, which has long been a stronghold of organized crime. The name of the club: Mafia Rave.

(g) In the spring of last year, after the dynamic duo donated three hundred and twenty-five thousand dollars to America First Action, a super pac that supports Donald Trump, they were invited to the White House, where they had dinner with the President and got their pictures taken with him. “Thank you President Trump !!! Making America great !!!!!! incredible dinner and even better conversation,” Parnas posted on his Facebook account.

(h) On Thursday, Trump said, “I don’t know those gentlemen.”

As I said, it’s a tough choice. On human-interest grounds, I’m choosing Option D, but the grip-and-grin picture of Parnas and Trump at the White House is also priceless—as is a picture of him having coffee with at Giuliani the Trump International Hotel in Washington last month. And let’s not forget the shot of Fruman and Parnas having breakfast in Beverly Hills last year with Donald Trump, Jr., and Tommy Hicks, Jr., a friend of Trump, Jr., who was then running America First Action.

But humor and Schadenfreude aside, this is a deadly serious matter. While there is still a good deal of murk surrounding the activities of Fruman and Parnas, we do know that they were two very busy and well-connected fellows. In addition to doing some of Giuliani’s bidding in Ukraine, as he sought to dig up dirt on Joe Biden and his son Hunter, Parnas got hired by a law firm run by two other Trump supporters and frequent Fox News guests, Joe DiGenova and Victoria Toensing. According to the Wall Street Journal, the law firm “hired Mr. Parnas in July to serve as an interpreter related to their representation of Dmitry Firtash, a Ukrainian oligarch, who was detained in Vienna, in 2014, on corruption charges filed in the U.S.”

Meanwhile, Parnas and Fruman were also representing, and acting at the behest of, at least two Eastern European parties who haven’t yet been identified. The indictmentsays that their political donations, some of which were routed through shell companies to hide their identities, “were made for the purpose of gaining influence with politicians so as to advance their own personal financial interests and the political interests of Ukrainian government officials, including at least one Ukrainian government official with whom they were working.”

Who was this Ukrainian official, and what did he or she want? That’s one of the things we don’t know yet, but the indictment says that Parnas met with a U.S. congressman, widely believed to be the former Texas Republican congressman Pete Sessions, and sought his “assistance in causing the U.S. Government to remove or recall the then-U.S. ambassador to Ukraine”—Marie Yovanovitch—and these “efforts to remove the Ambassador were conducted, at least in part, at the request of one or more Ukrainian government officials.”

We also know that the other Eastern European who was employing Parnas and Fruman is Russian. The indictment says that some of the donations that Fruman, Parnas, and two other individuals made in 2018 were really funded by a certain “Foreign National-1,” with a view to obtaining licenses for a recreational-marijuana business in certain U.S. states, including Nevada. One of the other conspirators is quoted in the indictment, and he says Foreign National-1’s identity was kept hidden because of “his Russian roots and current political paranoia about it.”

What does all this add up to? Although Parnas and Fruman hardly appear to fit the bill of men of international intrigue, they clearly played significant roles in the Giuliani-inspired effort to pressure the Ukrainian government to investigate the Bidens, get rid of Yovanovitch, and help Donald Trump get reëlected. That means they are potentially important witnesses in the Presidential-impeachment inquiry.

The House Democrats who are investigating Trump will most certainly want to hear what Parnas and Fruman have to say. (At least one House committee has already served a subpoena on them.) And, according to ABC News, the U.S. Attorney’s Office for the Southern District of New York, which brought the campaign-finance case against Parnas and Fruman, is also investigating their business relationship with Giuliani. That’s not good news for Rudy or Trump.

On Thursday, a federal judge in Virginia ordered the pair to be held in detention until they secure a bail bond of a million dollars each. Right now, they are being represented by John Dowd, a former lawyer for Trump, which would suggest they aren’t about to turn on their former associates and spill. But, like Michael Cohen, they could always have a change of heart.

  • John Cassidy has been a staff writer at The New Yorker since 1995.

 

Hedge fund managers decided in 2005 that the best way to advance the charter school idea was to create a faux organization called Democrats for Education Reform (DFER), then to funnel campaign cash to Democratic candidates who promised to support charter schools. This worked for a time. Senator Barack Obama spoke at the inaugural meeting of DFER at a penthouse in Manhattan filled with Wall Street types. When Obama was elected, DFER recommended Arne Duncan to be Secretary of Education, and Obama picked him over the highly qualified Linda Darling-Hammond, who had been his spokesperson during the campaign.

But some Democrats realized that DFER was a wolf in sheep’s clothing. The Democratic Party of California passed a resolution demanding that DFER drop the D because it was a front for corporate interests. The Democratic party of Colorado also passed a resolution denouncing DFER.

In 2016, DFER supported a referendum in Massachusetts to expand the number of charter schools, in company with the Waltons and big Republican donors. The charter campaign went down to a crashing defeat, after charters were denounced by the state Democratic Party and almost every school district committee in the state. The only demographic that supported the expansion of charters was members of the Republican Party.

Today, the loudest champion of charter schools is Betsy DeVos. The biggest allies of the charter movement are Republican governors and legislatures.

Sensing the change in the air, recognizing that charter schools now belong to ALEC and DeVos, almost every  Democratic candidate for President has steered clear of charter schools. Bernie Sanders endorsed the NAACP call for a moratorium on new charters.

But wait! DFER has commissioned a poll to demonstrate that Democrats actually favor charters!

Peter Greene says the poll is baloney. He explains it here. His advice: Ignore it.

Cathy Frye is an experienced journalist who switched careers. Three years ago, she was hired to work for the Arkansas Public School Resource Center as communications director. Before she was hired, she was asked if she had any qualms about charter schools, and she said no. When she quit her job in June 2019, she decided to tell what she had learned, and she started to report about her experiences on her blog. 

Here is the lowdown. Eighty-five percent of the rural public school districts in the state belong to the Arkansas Public School Resource Center, but the APSRC is a Walton-funded school choice operation.

When Frye quit, she said she felt a burden lift.

No more working in an environment steeped in secrecy and paranoia. No more placating a male boss who acted more like an abusive stalker ex-boyfriend than an actual leader. No more weird workplace silos that left “team leaders” completely in the dark as to what other departments were doing. No more legislative education committee meetings that reeked of conspiracy, deception and stale men’s suits in dire need of dry-cleaning. 

I think the turning point for me was when, at the beginning of APSRC’s annual membership drive in the spring/summer of 2019, Smith said on three occasions – in my presence – that “If you can’t dazzle them with brilliance, baffle them with bullshit.” 

“Them” refers to public school districts – as in APSRC’s current member districts and potential member districts.

I spent decades looking for facts. I believe in transparent and ethical journalistic practices.

Baffle them with bullshit?

Um, that’s a hard no. 

We’re talking about the education of Arkansas’ children. We’re talking about the teachers who work long hours for pitiful pay. We’re talking about inadequate funding, inadequate facilities and the fact that the state has taken its largest school district hostage just so that it can take it apart and reinstate segregation in the Little Rock School District.

There will be no “baffle them with bullshit” from my little corner of the universe. 

Also, covering the 2019 legislative session left me disturbed and downright angry about what is happening in public education. The 2017 General Assembly gave me serious pause. The 2019 session revealed the seamiest side of the school-”choice” movement.

In this post and those that will follow, I’m going to share the details of my three years at APSRC. Since quitting, I’ve learned that most people – even those in education – don’t realize how APSRC is structured or how it operates. Yes, it’s a nonprofit primarily funded by the Waltons. But it’s also a powerful and influential force where the governor and state Legislature are concerned. 

This is a blog that I will follow.

The Waltons, like their fellow billionaires the Kochs and the DeVos family, are dedicated to the destruction of public schools.

How clever to launch a “public school resource center” with which to peddle their anti-public school venom.

 

 

The Charter Industry has insisted that charter schools need no regulation, supervision, or oversight so they can have maximum flexibility. But where government money flows, accountability is imperative.

The importance of accountability was demonstrated again recently in Dallas, where the CEO of a charter school was convicted of steering a contract to a friend in exchange for a kickback.

Donna Houston-Woods, CEO of Nova Academy charter school, was convicted of all four counts against her: three counts of wire fraud and one count of conspiracy to commit mail and wire fraud.

Houston-Woods, 65, the school’s longtime chief executive, approved the $337,951 federal contract for the firm by copying the bid of a competing company that was initially selected for the job, the government alleged.

ADI’s owner, Donatus Anyanwu, returned the favor by secretly paying Houston-Woods about $50,000 in kickbacks, prosecutors said.

Anyanwu, 61, pleaded guilty to his role in the scheme in July. He did not testify during the weeklong wire and mail fraud trial in downtown Dallas.

Houston-Woods and Anyanwu were indicted in December 2017. Houston-Woods was accused of using her position as head of Nova Academy to steer the federal contract to ADI in return for kickbacks. ADI botched the job and shouldn’t have gotten the contract in the first place, prosecutors said.

Michigan blogger “Up North Progressive” describes a clever, underhanded bait-and-switch pulled by a for-profit charter founder. 

He needed money for a new school and he showed plans of an expansive campus. Once he got the money, the reality emerged that the new school would be in an industrial office building surrounded by a parking lot, not playing fields.

For-profit Charyl Stockwell Academy likes to call itself a school district even though they don’t have boundaries, an elected school board, nor can they hold elections to approve bonds or millages. Those are methods of funding reserved for real public school districts that have real boundaries and real elected school boards. Charyl Stockwell Preparatory Academy plans to expand their business to a third building just for the middle school aged customers in 2020.

When for-profit charter schools want to expand, they have to either take out a loan or ask for donations. Sometimes, they even embezzle money from one for-profit charter school to pay for another, and then ask the non-elected board of the first for-profit charter school to call the stolen taxpayer’s school funding a loan so they can avoid paying taxes on the money they embezzled.

Last spring Chuck Stockwell, founder of Charyl Stockwell Academy, decided to show parents of children attending the middle school in 2020 designs for a brand new building at their big fundraiser event, the Beluga Ball. Parents were impressed with the plans for the new school Stockwell promised to break ground that spring, and would be completed in time for fall of 2020. The location for this project was “Brighton Interior Drive just around the corner from the present CSPA campus.” Plans shown to the parents with images and a videoconsisted of a new, breathtaking modern school with enough land to provide adequate outdoor space for students.

The catch of course was in order to begin construction this new building for the CSA franchise Chuck needed money to fund the project. Parents believing they were getting a brand new school building dug deep and donated funds to CSA.

Then Up North Progressive explains what really happened and reminds parents that they have until October 2 to enroll their child in a real public school.

That is today! Change now or the charter will vacuum up your child’s tuition money for the entire year even if you withdraw him or her.

The charter Industry faction on the Los Angeles School Board wants to introduce a Jeb Bush-style evaluation system to rank and rate schools. It hasn’t worked anywhere else in the nation, so why not introduce it in Los Angeles.

Every other state has demonstrated that the school grading system ranks schools by the income of parents. Schools that enroll the poorest children get the lowest grades. Schools that enroll affluent children get the highest grades.

The purpose of school grades is to set schools up to be privatized.

Sara Roos, who blogs as Red Queen in L.A., writes that the school district does not need a Yelp system. She is right.

She points out that board member Jackie Goldberg wants the school system to help schools that are in need of support, not devise a system to call them “failures.”

The charter advocates are pushing the Jeb Bush Plan because it will help build the charter industry. It will do nothing for children.

 

Investigative journalist Jeff Bryant has published a bombshell article about entrepreneurs who operate superintendent searches, then call on their Superintendents to buy professional development, technology, training, and other services. The conflicts of interest and self-dealing are shocking. Districts lose millions of dollars and buy services they don’t need, while the search service continues to pay them.

Most of us are familiar with the case of Barbara Byrd-Bennett, former Superintendent of Chicago Public Schools, who is currently serving a jail sentence for taking kickbacks.  But the web of corruption has involved many superintendents and school districts.

Bryant writes:

In July 2013, the education world was rocked when a breaking story by Chicago independent journalist Sarah Karp reported that district CEO Barbara Byrd-Bennett had pushed through a no-bid $20 million contract to provide professional development to administrators with a private, for-profit company called SUPES Academy, which she had worked for a year before the deal transpired. Byrd-Bennett was also listed as a senior associate for PROACT Search, a superintendent search firm run by the same individuals who led SUPES.

By 2015, federal investigators looked into the deal and found reason to charge Byrd-Bennett for accepting bribes and kickbacks from the company that ran SUPES and PROACT. A year-and-a-half later, the story made national headlines when Byrd-Bennett was convicted and sentenced to prison for those charges. But anyone who thought this story was an anomaly would be mistaken. Similar conflicts of interest among private superintendent search firms, their associated consulting companies, and their handpicked school leaders have plagued multiple school districts across the country.

In an extensive examination, Our Schools has discovered an intricate web of businesses that reap lucrative school contracts funded by public tax dollars. These businesses are often able to place their handpicked candidates in school leadership positions who then help make the purchasing decision for the same businesses’ other products and services, which often include professional development, strategic planning, computer-based services, or data analytics. The deals are often brokered in secrecy or presented to local school boards in ways that make insider schemes appear legitimate.

As in the Byrd-Bennett scandal, school officials who get caught in this web risk public humiliation, criminal investigation, and potential jail time, while the businesses that perpetuate this hidden arrangement continue to flourish and grow.

The results of these scandals are often disastrous. School policies and personnel are steered toward products that reward private companies rather than toward research-proven methods for supporting student learning and teacher performance. School governance becomes geared to the interests of well-connected individuals rather than the desires of teachers and voters. And when insider schemes become public, whole communities are thrown into chaos, sometimes for years, resulting in wasted education dollars and increased disillusionment with school systems and local governance.

Bryant lays out the evidence of collusion, corruption, and conflicts of interest. He reviews districts in Illinois, Maryland, and elsewhere. The evidence is devastating.

Nashville was victimized by entrepreneurs who manipulated the district and the process.

One of the first school districts to become entangled in the conglomeration of firms Wise and Sundstrom assembled was Nashville, which in 2016 chose Jim Huge and Associates to help with hiring a new superintendent. The following year the board hired Shawn Joseph, whom Huge had recommended.

Shortly after Joseph arrived in Nashville, according to local News Channel 5 investigative reporter Phil Williams, he began pushing the district to give $1.8 million in no-bid contracts to Performance Matters, a Utah-based technology company that sells “software solutions” to school districts.

Williams found Joseph had spoken at the company’s conference and he had touted the company’s software products in promotional materials while he was employed in his previous job in Maryland. Williams also unearthed emails showing Joseph began contract talks with Performance Matters two weeks before he formally took office in Nashville. What also struck Williams as odd was that despite the considerable cost of the contract, district employees were not required to use the software.

In addition to pushing Performance Matters, Williams reported, Joseph gave an “inside track” to Discovery Education, a textbook and digital curriculum provider and another company he and his team had ties to from their work in Maryland. With Joseph’s backing, Discovery Education received an $11.4 million contract to provide a new science, technology, engineering, art, and math (STEAM) program even though a smaller company came in with a bid that was a fraction of what Discovery proposed.

By June 2018, Nashville school board member Amy Frogge was questioning Joseph about possible connections these vendors might have to ERDI. A district audit would confirm that ERDI’s affiliated companies—including Performance Matters, Discovery Education, and six other companies—had signed contracts totaling more than $17 million with the district since Joseph had been hired.

Frogge also came to realize that all these enterprises were connected to the firm who had been instrumental in hiring Joseph—Jim Huge and Associates.

“The search that brought Shawn Joseph to Nashville was clearly manipulated,” Frogge told Our Schools in an email, “and the school board was kept in the dark about Joseph’s previous tenure in Maryland and his relationships with vendor companies.”

Frogge said some of the manipulation occurred when the search firm told school board members that disputes among current board members—over charter schools, school finances, and other issues—indicated the district was “‘too dysfunctional’ to hire top-level superintendents and therefore needed to hire a less experienced candidate.”

But previous investigations of school leadership search firms conducted by Our Schools have found companies like these frequently forego background checks of prospective candidates they recommend, promote favored candidates regardless of their experience or track record, and push board members to keep the entire search process, including the final candidates, confidential from public scrutiny.

“Too often, national search firms are also driven by money-making motives and/or connections with those seeking profit,” Frogge contended. That conflict of interest is a concern not only in Nashville but also in other districts where school leaders with deep ties to education vendors and consultants have resulted in huge scandals that traumatized communities and cost taxpayers millions…

Frogge noted school boards have alternatives to using private search firms that promote tainted candidates willing to feed the search firms’ side businesses.

“School board members need to become better informed and more savvy about profit motives and organizations that seek to influence their selection,” she wrote. “School boards can instead opt to hire a local school boards association (for example, the Tennessee School Boards Association) or a local recruiter with a reputation for personal integrity to conduct a search. They can also choose to hire from within.”

Shawgi Tell, a professor of education at Nazareth College in upstate New York, has a straightforward answer to the question he raises. His answer: No. Charter schools are not public schools.

He writes:

Charter school advocates have always desperately sought to convince themselves and the public that privately-run nonprofit and for-profit charter schools that operate like businesses are actually public and similar in many ways to public schools.

Nothing could be farther from the truth. Charter schools are not public schools.

In reality, privately-operated nonprofit and for-profit charter schools differ in many profound ways from public schools that have been educating 90 percent of America’s youth for more than a century.

Below is an abbreviated list of the many ways in which privately-operated nonprofit and for-profit charter schools differ significantly from public schools.

Charter schools are exempt from dozens, even hundreds, of state and local laws, rules, regulations, policies, and agreements that apply to all public schools.

At least 90% of charter schools have no teacher unions—the opposite of public schools.
Some charter school owners-operators openly and publicly insist that charter schools are private entities.

Unlike public schools, charter schools are not governed by a publicly elected school board, but by a self-selecting, corporate-style board of trustees.

Many charter schools are not subject to audits, at least not in the same way as public schools.

Many charter schools do not uphold open-meeting laws; they dodge many such public requirements.

Many charter schools do not provide the same services as public schools, e.g., transportation, nurses, food, sports, education services, etc.

Thousands of charter schools are directly and/or indirectly owned, operated, or managed by private, for-profit entities.

Many, if not most, charter schools regularly use discriminatory student enrollment practices. Students with disabilities and English Language Learners in particular are usually under-represented in charter schools. So are homeless students and other students…

Charter means contract. Charter schools are contract Performance contracts are at the heart of charter schools. Contract is the quintessential market category. Contracts make commerce possible. Contract law is part of private law, not public law. Charter schools are legally classified as nonprofits or for-profits. Unlike public schools, they are not political subdivisions of the state. In some places, like New York State, charter schools are not considered political subdivisions of the state. Unlike public schools, charter schools are not state agencies.

He offers many more reasons to support the conclusion that charter schools are not public schools.