Archives for category: Fraud

Nick Trombetta, founder of the nation’s first cybercharter, will be sentenced on July 10.

He admitted stealing $8 million in public funds intended for his school.

The long-delayed sentencing hearing of former Pennsylvania Cyber Charter School CEO Nick Trombetta on charges of tax fraud and conspiracy is set for July, according to information filed Wednesday in U.S. District Court.

The July 10 sentencing will come nearly five years after Trombetta, 62, was indicted by a grand jury on 11 counts of tax fraud and conspiracy in August 2013. He pleaded guilty to conspiring to defraud the IRS in August 2016.

He faces up to five years in federal prison.

Trombetta siphoned $8 million from the Midland-based public school and used the money to stockpile retirement money and buy personal luxury goods for himself, his girlfriend and his family — including multiple homes and a twin-engine airplane.

The conspiracy involved Trombetta and several others – including his accountant, Neal Prence – moving the money to other companies created or controlled by Trombetta and filing false tax returns.

He had this great idea. Give a computer and distance instruction to students who enrolled. Collect full state tuition. He collected $10,000 per student and had 10,000 students. He was rolling in dough. $100 million. It is easy to let that kind of money go to your head or your bank account.

There are virtual charter schools operating across the country that are raking in lots of money that they don’t need or deserve. What should they do with it?

If every charter operator who used his school’s credit card as his personal piggy bank were put into jail, the jails would be overcrowded. If they happened to be privatized prisons, the charter industry would turn against privatization and demand decent public prisons.

 

School districts in Missouri customarily have nonpartisan school board elections. No more. Tomorrow voters will go to the polls in the Parkway District (a suburb of St. Louis) to select two new school board members. Five candidates are running for two open positions on the school board.

An organization has entered the race to endorse candidates who are opposed to abortion, sex education, and student protests.

It has endorsed two of the five who are running.

Who is paying for this group’s campaign activities?

No one knows.

The group calls itself Advocates for Educating Taxpayer Accountability.

How ironic that a group that hides the names of its contributors says it favors “accountability” when it refuses to be either transparent or accountable.

Why are they hiding? Why don’t they announce their names?

 

Florida is a state that apparently does not prohibit nepotism or conflicts of interest when it comes to charter schools.

The League of Women Voters in Florida studied charters and documented financial links between charter schools and legislators. 

The Miami Herald recognized years ago that Florida was creating a dual school system, and that the charters were fleecing taxpayers with little oversight or accountability.

The Miami Herald wrote about the most recent examples of family members of legislators cashing in.

”Though far removed geographically from each other, two new Florida charter schools share an uncommon feature: They both have a board member who is married to a state lawmaker heavily involved in crafting state policy on charter schools.

“Anne Corcoran, the founder of a charter school in Pasco County, is assisting with a new Tallahassee school. She’s married to Florida House Speaker Richard Corcoran, R-Land O’Lakes.

“Erika Donalds, the founder of a charter school in Collier County, is leading the effort to open a new Martin County school. Her husband is Rep. Byron Donalds, R-Naples, who shepherded Speaker Corcoran’s bill on vouchers for bullied students in the House.”

Read more here: http://www.miamiherald.com/news/politics-government/state-politics/article207320264.html#storylink=cpy

 

 

Yesterday I posted Rick Hess’s article chastising his fellow reformers for their celebration of D.C.’s “success” as a model, which led to their embarrassment when the falsification of graduation data was revealed.

John Merrow posted a lengthy comment following Hess’s article, which is worth reading.

He wriites:

Rick Hess has, sadly, been singing the praises of ‘school reform’ from the beginning. That he’s acknowledging error now is laudable, but it’s inaccurate, unfair, and disingenuous to suggest that no one has called attention to the fraud of the ‘test and punish’ approach championed by Rhee and Henderson.

Below are nine citations of my own work (#8 with Mary Levy). If readers of this note have time for only a few, please review #1, “Michelle Rhee’s Reign of Error,” #4, “The Premature Celebration of Henderson’s 5-year Anniversary,” and #8, “A Complete History of the DC Reform Fiasco,” written with Mary Levy.

(I also write about this in my new book, “Addicted to Reform: A 12-Step Program to Rescue Public Education.” If you are wondering who and what public education needs to be rescued FROM, well, let me say that Rick Hess, Checker Finn, Mike Petrilli, the Fordham Foundation, Tom Toch, Education Next, Democrats for Education Reform, and the big testing companies are on the list.)

I believe that Hess and other apologists owe far more than an apology to the THOUSANDS of DC students who were lied to about their progress, and to the teachers who were vilified and driven out of their chosen field.

Right now Hess and others of his tribe ought to be working overtime to persuade Mayor Bowser, who shows no visible signs of having learned from this tragedy, to change course.

Yes, the failure of the Washington Post’s editorial page is regrettable, but I doubt that strong editorials would have been enough to drown out the hymns of praise from Hess, Arne Duncan, the big foundations, and local philanthropists.

That repentant apologists like Rick Hess and unrepentant ones like Tom Toch continue to dine out on and parade their supposed expertise is beyond ironic.

1.https://themerrowreport.com/2013/04/11/michelle-rhees-reign-of-error/
2.https://themerrowreport.com/2013/05/15/michelle-rhee-and-the-washington-post/
3.https://themerrowreport.com/2014/07/24/michelle-rhees-high-priced-pr/
4.https://themerrowreport.com/2015/12/08/a-premature-celebration-in-dc/
5.https://themerrowreport.com/2015/12/16/kaya-hendersons-track-record-redux/
6.https://themerrowreport.com/2015/12/16/kaya-hendersons-track-record-redux/
7.https://themerrowreport.com/2018/02/12/graduation-rates-school-reform-fraud/
8.https://themerrowreport.com/2017/11/11/the-d-c-school-reform-fiasco-a-complete-history/
9.https://www.pbs.org/wgbh/frontline/film/education-of-michelle-rhee/

 

This is a really good article by Rick Hess of the DeVos-funded American Enterprise Institute about reformers’ credulous embrace of every claim made by D.C. and using it as their model for the success of “reform.” Having elevated D.C. as their paradigm, they were unprepared for and blindsided by the recent graduation-rate scandal.

He faults the Washington Post, for its infatuation with Michelle Rhee and Kaya Henderson. And he faults President Obama for saluting a fake graduation rate increase.

Kudos to Rick for his fearless chastising of his compatriots.

He writes:

“Lots of self-styled “reformers” had good reason to observe DCPS through rose-tinted glasses. A wealth of advocates, funders, consultants, researchers, and friends had a rooting interest in DCPS’s success — and had every incentive to focus on the good news. This includes the senior author of this piece, who counted many DCPS leaders as friends of long standing — and who wrote admiringly about some of their efforts.

“After all, Washington, D.C., as much as any city over the past decade, served as a laboratory where philanthropists, policy analysts, and high profile media outlets converge. Philanthropists have poured more than $120 million into the school system since 2007. By 2010, the nation’s largest 15 philanthropies were spending more on K-12 education in D.C. than in any other school district in America.”

Curiously, he places some of the blame on critics of these fraudulent reforms, because their criticism made the reformers circle their wagons.

Maybe the reformers should have listened to critics like Guy Brandenburg and others who blew the whistle early on, instead of closing their ears and circling the wagons. Maybe they should have taken seriously the testing scandal that USA Today reported in 2011, instead of sweeping it under the rug.

 

 

Betsy DeVos may be mocked by the media and parents, but she has a friend in Mike Petrilli at the Thomas B. Fordham Institute. 

Is TBF angling for a federal grant? Mike was an original member of the “NeverTrump” movement, but now he is very impressed by Betsy DeVos. He is star struck, in fact.

Congress has handled her budget requests unsympathetically. She asked for deep cuts in the ED Department’s budget, but Congress increased spending on the programs she wanted to eliminate. The ED budget is actually larger, not smaller.

Betsy wanted $1 billion for school choice, but Congress killed that.

The only win she got was an increase in the funding of charter schools, which now goes up to $400 million a year.

This is a big win for ALEC, the Koch brothers, the DeVos family, and all the Red State governors who want to privatize public education. Make no mistake, it is a win for Donald Trump.

The big push to eliminate public schools in urban districts will resume, thanks to Congress.

This surely makes Corey Booker, one of DeVos’s strongest supporters, happy, along with Andrew Cuomo (NY), Dannel Malloy (CT), and Jerry Brown (CA).

Democrats who say they oppose the DeVos agenda of privatization (like Senator Patty Murray of Washington State) got rolled by DeVos.

New funding for charters, despite the scandals and frauds association with them, will be at least $600 million from the federal government, with its $400 million a year, and the Walton family’s $200 million a year.

If charters were really saving lives, as Petrilli claims, why are Detroit, Milwaukee, and D.C. still among the lowest performing districts in the nation, even though they are all charter-heavy?

When public money goes to private entrepreneurs without accountability, that is an invitation to fraud. And there are plenty of fraudsters lined up to take the money and run.

 

The Washington Post reports that the Alt-Right conspiracy theorists have created fake portraits and videos to attack student leader Emma Gonzalez. The most infamous is a doctored video allegedly showing her tearing up the Constitution, changing the original, in which she ripped an NRA target.

Disgraceful. There is no limit to how low the far right will go.

 

The Michigan House decided to let charters share in the bounty of votes on millage, where citizens vote to fund their public schools. 80% of charters in Michigan operate for profit, so this will boost their bottom line and steal taxpayer dollars intended for the 90% of children in public schools. The decision now goes to the State Senate.

LANSING, Mich. (AP) — Charter schools could receive the same designation as public schools in a district’s millage ballot under a bill narrowly approved by the Michigan House.

Legislators on Thursday voted 56-53 to pass an amendment to the General Property Tax Act allowing districts to describe charter schools as “public schools” on ballots. The initiative now heads to the Senate and follows a January law signed by Gov. Rick Snyder to let charter schools receive revenue from certain voter-approved property tax hikes….

Democrats counter that voters would be unaware of their tax dollars being funneled to for-profit education corporations.

 

 

 

Arizona was long known as the Wild West of charters, but that was before Ohio, Florida, and Michigan jumped into the game.

This charter scandal was so bad that even the president of the state charter board denounced it. 

“This is probably one of the most egregious, most outrageous things I’ve ever read about a charter school,” Kathy Senseman, President of the Arizona State Board for Charter Schools, said in a special session Tuesday.

“The board was made aware of an investigation by a bankruptcy court and U.S. Department of Justice into potential fraud at the Starshine Academy. Investigators allege founder Trish McCarty used taxpayer money for personal expenses. Recent records show the school nearly $3 million in debt.

“I’ve done absolutely everything that I can do in every single case to do everything right,” McCarty told ABC15 by phone.

“Investigators questioned a cash advance made at a Sante Fe casino, car rentals and Walmart purchases paid for by the school. McCarty said the purchases were legitimate because Starshine had a location there. Still, the state board said many financial records were missing or incomplete.

“According to the most recent overall academic rating in 2014 by the charter school board, Starshine ranked 48.96 on a 100-point scale, classifying it “does not meet standard.” The school fell from a 70 out of the 100-point ranking in 2012.

“McCarty said around half of the school’s 90 students are refugees and Starshine faced dropping enrollment, accounting for the low rating.

“Starshine filed for bankruptcy protection in 2016 after failing to keep up with payments on a $12-million expansion.

“This case “is the poster child of basically what’s wrong with charter schools in Arizona,” said Jim Hall, Founder of Arizonans for Charter School Accountability.”

 

Betsy DeVos has been put in charge of a task force to make recommendations on school safety. The only members are Cabinet members. No students, teachers, principals, or Superintendents will be on the task force or commission. Anyone who has worked in the federal government will tell you that Cabinet members are very busy people, and they are surrounded by yes-men and -women and assistants and speech writers. In their own domains, they are sovereign. They will give very little time or attention to this sham assignment. This is a farce. Chances are that the report has already been drafted by an NRA member of Betsy’s staff.

Politico reported this morning:

WHY TRUMP’S SCHOOL SAFETY COMMISSION OMITS STUDENTS, TEACHERS: The new White House commission on school safety will consist of just four Cabinet secretaries – prompting concerns from parents, students, teachers and school administrators who feel they should play a bigger role. But the Trump administration says it’s about getting to work quickly.

– Education Secretary Betsy DeVos on Tuesday testified during a hearing of the House Appropriations subcommittee that oversees education funding. While she was there to discuss the Trump administration’s fiscal 2019 budget proposal, she offered new details about the commission’s makeup. DeVos will chair the commission, which was recently unveiled by the White House in response to the school shooting in Parkland, Fla., last month that left 17 people dead. Attorney General Jeff Sessions, Health and Human Services Secretary Alex Azar and Homeland Security Secretary Kirstjen Nielsen will join her, she told lawmakers.

– “Is that it? Just four Cabinet secretaries? No experts? No Democrats?” asked Rep. Katherine Clark (D-Mass.). DeVos replied, “This is an urgent matter and we want to ensure that we’re able to move and operate as quickly as possible and without getting bogged down by a lot of bureaucracy.”

– What does DeVos mean by “bureaucracy”? Keeping the commission to just four federal officials who have jurisdiction over school safety issues means the group can “get up and running as quickly as possible,” said Education Department spokeswoman Liz Hill.

– “Advisory commissions with non-Federal employees have to follow Federal Advisory Committee Act rules, which adds significant bureaucratic bloat,” Hill said in a statement. “FACA imposes many bureaucratic hurdles, such as requiring a charter that must be approved by the General Services Administration and the appointment of an Agency Committee Management Officer and a Designated Federal Officer, as well as other requirements that would delay the start of this important effort.”

– Input from students, parents and teachers “will be critical,” Hill added. “The Commission will receive input from and hold meetings over the coming weeks and months with students, parents, teachers, schools safety personnel, administrators, law enforcement officials, mental health professionals, school counselors and others holding a wide variety of views.”

– Still, education groups want to ensure they’re heard. “It is critical that parents have a seat at the table whenever decisions are made that impact their children, and particularly on the critical issue of school safety,” said Jim Accomando, president of National PTA, which represents parent-teacher associations nationwide.

– “As school building leaders, principals must be heard on school safety and student well-being issues,” said L. Earl Franks, executive director of the National Association of Elementary School Principals. Noelle Ellerson Ng, associate executive director for policy and advocacy at AASA, The School Superintendents Association, said that “by keeping it only to Cabinet members, it’s necessarily political … I would venture a guess that the commission described by Secretary DeVos today isn’t set it up to be super productive.”