Archives for category: Fraud

This column by Gail Collins is a Must Read.

The bad news from the U.S. Department of Education comes so frequently that it is hard to keep track of it.

DeVos is clear in her goals: roll back the federal role in protecting students and taxpayers’ money.

One egregious example: she is diluting, diminishing, removing federal efforts to rein in for-profit Colleges. In fact, she has hired former executives and lobbyists from the industry to write the regulations. Some of her many investments were in the industry, which she obviously sees as part of the future. And surely she has not forgotten Trump University, the fraud associated with the man who appointed her.

Collins writes:

“DeVos is the superrich Republican donor who once led a crusade to reform troubled Michigan public schools by turning them into truly terrible private ones. Now she’s in the Trump cabinet, and she seems to be dedicating a lot of her time to, um, lowering higher education.

“When no one was watching she hired a lot of people that come from the for-profit colleges,” complained Senator Patty Murray of Washington, who feels the additions are far more interested in protecting their old associates than in overseeing them. Murray is the top Democrat on the Health, Education, Labor and Pensions Committee, otherwise known as HELP. These days it’s hard to tell whether that’s a promise of assistance or a cry of distress.

“To oversee the critical issue of fraud in higher education, DeVos picked Julian Schmoke Jr., whose former job was a dean of — yes! — a for-profit university. Specifically a school named DeVry. Last year, under fire from state prosecutors and the Federal Trade Commission, DeVry agreed to pay $100 million to students who complained that they had been misled by its recruitment pitch.

“That sort of thing is getting to be common in the darkest corners of the for-profit world. For instance, there’s a now-defunct “university” that promised to show students how to get rich quick in real estate and wound up paying $25 million to settle the case. …

“Back to the Department of Education. One of DeVos’s top advisers, Robert Eitel, is on a leave of absence from a company that operates for-profits and once paid more than $30 million to settle charges of deceiving students about the loans they were getting.

“Which is, again, even more than that real estate school, where some students claimed they were encouraged by instructors to increase the limits on their credit cards. …

“There are well over 3,000 for-profit colleges and universities in the country, everything from tiny schools that promise to set you off on a career in cosmetology to conglomerates with campuses all over the world. Some of them have names that might seem intended to be confused with somebody else’s. (Not necessarily thinking of you, Brown College, Berkeley College, Columbia Southern University or Northwestern College.)

“Experts say some for-profits are fine. However, there have been a ton of horror shows in which low-income men and women are promised a path to life-changing jobs but wind up with nothing to show except huge loan bills.”

When the Orlando Sentinel published an in-depth expose of Florida’s unregulated, unaccountable, wasteful voucher programs, defenders of vouchers rushed to attack the series.

Remember, Betsy DeVos considers Florida the model that she wants for America.

Scott Maxwell of the Sentinel responds to the critics here.

The nation needs more journalistic scrutiny of the unscrupulous, fraudulent, and incompetent hucksters who are siphoning billions of dollars away from public schools with certified teachers. In Florida, it is $1 Billion a year, and that is only for vouchers, not charters, which has its own share of scams and frauds. In Michigan, the charter industry drains $1 Billion a year away from public schools, and the charters don’t get better outcomes than the public schools; many are far worse, and 80% are for-profit.

Congratulations to the Orlando Sentinel for scrutinizing Florida’s voucher schools.

For the first time ever, I add a newspaper to the honor roll of this Blog.

Here is an excerpt.

“The “Schools without Rules” series exposed scores of problems at these publicly funded schools — everything from forged safety reports to a school run by a pastor accused of lewd or lascivious molestation.

“Just as importantly, it exposed a wicked hypocrisy among politicians who scream for “accountability” for public schools but let anything go when your tax dollars are whisked away to private ones.

“This little-regulated system needs an overhaul. And the world needs more real journalists.

“Among the findings from reporters Beth Kassab, Leslie Postal and Annie Martin:

“Teachers without certification or even college degrees.

“Forged documents: Schools faked up clean bills of health from fire departments, which had found safety problems. Even after the schools were caught, state officials let them remain open.

“Shady hirings: Two teachers worked at voucher schools (the state calls them “scholarship” schools) after being fired from public schools for having porn on their school computers.

“Alleged crime: At one school for special-needs kids, suspicions of impropriety — among parents and even a teacher — continued until authorities arrested the school owner, accusing her of stealing more than $4 million in Medicaid funds.

“Troubling finances and learning environments: Two school were evicted from their locations for nonpayment of rent while the school year was still going on. Another shared office-suite space with a bail bondsman.”

If there were newspapers in every state willing to investigate the privatization of their public schools, the public would understand the scandal that is going on in the dark. In Ohio, local newspapers started paying attention to charter scandals, and it affected public opinion. In the past two years, charter enrollments have fallen in Ohio as the public understands the risks they are taking by enrolling their children in schools without roots and the damage they are doing to their public schools.

More coverage, please!

Most of the time, scandals come and go and no one remembers them after a day or two. But sometimes scandals cause a seismic reaction. Think Harvey Weinstein. Powerful men have sexually assaulted women in their employ and hoping to be in their employ or just in their proximity for as long as anyone can remember. Despite a number of high profile scandals, the larger phenomenon is ignored. Many people assumed Trump’s gloating about his sexual assaults would doom his campaign but it didn’t. Bill O’Reilly had to leave FOX news, but that passed. The Harvey story has gotten more attention and more outrage than any of the others.

Could the Ref Rodriguez corruption scandal awaken the public to the systemic problem of giving public money to private corporations and individuals without regular oversight and accountability? Could this be the Big One that tarnishes the privatization movement?

Nonprofit Quarterly writes:
“Something is rotten in the world of Los Angeles school board politics.

“Partnerships to Uplift Communities (PUC) charter school network founder and L.A. Unified School District Board member (and, until recently, board president) Refugio Rodriguez faces three felony charges, 25 misdemeanor charges, and conflict-of-interest allegations for laundering money in his school board campaigns in 2014 and 2015. Charges were filed last month by the city’s ethics commission.

“It might seem unusual that a charter school founder (and recent employee) would head the school board for a major city’s public K-12 system, but this was no accident. Rodriguez was part of a slate, “one of four board members who came into power with the strong backing of charter school supporters and who now make up a majority of the seven-member body.” As Rachel Cohen writes for The Intercept, Rodriguez “was backed by the well-heeled charter school movement, which spent more than $2 million to help elect him. This past spring, education reform advocates won three more seats, giving the board a slim pro-charter majority for the first time ever. Rodriguez was then elected board president in July.” After the ethics charges were filed, Rodriguez stepped down as board president, but remains a school board member.

“Then this past Monday, the other shoe dropped and a second investigation was launched. As another Los Angeles Times article explains, “Officials at PUC Schools, a local charter school network, have filed a complaint with the state Fair Political Practices Commission.”

The filing alleges that Rodriguez, who co-founded PUC, ordered the transfer of about $265,000 from PUC to a nonprofit that appeared to be under his control. An additional $20,000 went to a private company in which he might have owned a stake.

““PUC”, according to the Los Angeles Times, “operates 17 schools in Los Angeles and one in Rochester, N.Y. It is a nonprofit that operates under its own board, with L.A. Unified authorizing its local schools individually.”

“Last Friday, PUC accepted the resignation of Rodriguez’s cousin “senior manager Elizabeth Tinajero Melendrez. In PUC records reviewed by the Times, Melendrez is listed as the person who requested eight of the checks Rodriguez authorized, adding up to nearly $188,000.”

“As NPQ has reported previously, conflicts of interest, or even the appearances of them, put the entire organization at risk of losing its credibility. Jacqueline Elliott, the cofounder of PUC, has distanced herself from the scandal in the media, perhaps hoping to maintain the reputation of the charter network with funders. (Elliott is not under any investigation.)

“A large and complicated web of money and influence has been woven under the feet of Los Angeles’ education leaders. Untangling it will certainly cost the district time and credibility, especially since, as noted above, the balance of the school board recently shifted toward charter school supporters, who strongly supported Rodriguez and who now occupy four of the seven board seats.“

NPQ ends hopefully on the note that “Big money and scandal are not, obviously, necessary or even frequent companions to large charter networks.“

As we have seen time and again, “big money” is indeed a necessary and frequent companion of large charter networks. Whether scandal follows depends on the extent to which there is public oversight of public money.

Given the fact that the charter industry controls the school board in Los Angeles, don’t expect LAUSD to clean its own house. Expect it to join the coverup, even if Ref is thrown off the island as a necessary sacrifice.

Will the public wake up to the waste of their tax dollars? Will this scandal be the one that ignites outrage? Should the public pay $1 Million a year for visas for Turkish teachers? Should the public pay charter CEOs over half s Million a year? Should the public pay for executives at virtual charters who collect millions a year in compensation? Should the public turn a blind eye to the millions from hedge fund managers and other financiers and rightwing foundations that want to privatize public education?

When the editorial boards of the nation’s most powerful newspapers—the New York Times, the Washington Post, the Los Angeles Times— consistently defend private and unaccountable charters and support privatization, it makes you wonder how big a scandal is necessary before they wake up and defend the public interest? Do they know they are supporting the agenda of ALEC and Betsy DeVos? Do they care?

The invaluable Nonprofit Quarterly asks whether Harvey Weinstein cynically used philanthropy to cloak his unconscionable actions.

We might ask the same questions of many of the heartless corporations and individuals now poring hundreds of millions into charter schools, simultaneously destroying democratic public schools.

What about the Waltons? They claim they love poor children and children of color, so they spend at least $200 Million every year to dismantle their community schools and replace them with privately managed charters.

They break the unions that assure the parents of these children a living wage. They refuse to pay their own 1 Million plus workers a living wage.

If they really cared about the children, why don’t they care about the conditions in which they live?

This is what NPQ calls depravity.

The story includes this quote:

“Jelani Cobb, a staff writer at the New Yorker, offers us something new to consider about this ugly story. “The great mystery of evil is not that it persists but, rather, that so many of its practitioners wish to do so while being thought of as saints.” As the idiom “a wolf in sheep’s clothing” warns, beware of the champions of progressive causes with whom contact is dangerous. According to countless reports, Weinstein was apparently a wolf in wolf’s clothing.”

How many corporate reformers are impoverishing the people of Puerto Rico by demanding that PR pays 100% on the bonds they scooped up at a deep discount? Their advice to PR: pay us back and close schools and hospitals and all other public services. Maybe they should send in KIPP, Eva, Uncommon, and Achievement First. Oops. You can’t get blood from a stone. They may have to write off their losses on their tax returns.

Call them what they are: predators.

Giving letter grades to schools is a fraud.

In New York City, the Department of Health gives letter grades to restaurants, and almost every restaurant gets an A unless there are unhealthy, unsanitary conditions discovered by inspectors, like mouse droppings in the kitchen.

School letter grades attempt to grade schools largely by test scores, whether performance or growth. The scores largely reflect the affluence or poverty of the students. If you want to understand how stupid it is to judge schools by test scores, read Daniel Koretz’s new book, “The Testing Charade: Pretending to Improve Education.” Give a copy to your superintendent and the school board.

A school is a complex institution with a complex mission, far more complex than a restaurant.

Arizona has decided to recalculate it’s fraudulent school grades.

Could it be because the charter school in Snowflake, Arizona, got an F? That is the Charter beloved by Sylvia Allen, chair of the State Senate Education Committee?

However they are recalculated, they will still be fraudulent.

The Los Angeles Times reports that the charter chain founded by LAUSD board member Ref Rodriguez has now accused him of financial misdeeds. He was accused last month of money laundering during his campaign for the board seat. Rodriguez was put into office by the charter billionaires associated with the California Charter School Association. After the defeat of Steve Zimmer by Nick Melvoin last spring, The board had a charter majority for the first time and was on the cusp of privatizing many more schools. After his indictment, Rodriguez stepped aside as board president but refused to give up his seat.

Will Rodriguez cling to his seat? Will Eli Broad and Reed Hastings and Alice Walton have to buy a new board seat?

“The charter school network that L.A. school board member Ref Rodriguez co-founded and ran for years has filed a complaint with state regulators alleging that Rodriguez had a conflict of interest when he authorized about $285,000 in payments drawn on its accounts.

“Officials at Partnerships to Uplift Communities, or PUC Schools, filed the complaint Friday with the state’s Fair Political Practices Commission.

“According to the complaint and documents reviewed by The Times, the vast majority of the money transfers that Rodriguez authorized and PUC has flagged went from school accounts to Partners for Developing Futures, a nonprofit under his control.

“An attorney who reviewed the records for the school network said he has found little or no evidence so far of services provided for these payments.

“The payments were made in 2014, but do not appear to have been properly authorized,” said attorney Gregory Moser, whose firm was hired by PUC to conduct the investigation. “Nor are the purposes of the expenditures and benefit to the schools adequately documented, our investigation revealed.”

“PUC’s senior managers said they uncovered the transfers — made in a series of checks — while responding to questions and requests from The Times in compliance with the state’s Public Records Act.

“The conflict-of-interest allegations could add to Rodriguez’s legal problems.

“Last month, prosecutors charged him with three felonies and 25 misdemeanors for alleged money laundering in his school board campaign. Rodriguez is accused of soliciting people to give him donations and then illegally paying them back.”

Charter Schools Education Los Angeles Board of Education

Denis Smith worked in the charter office of the Ohio Department of Education until he retired in 2011. He continues to be amazed by the growth and scale of charter fraud, waste, and abuse, which the legislature ignores. Of course, the charter industry has been shielded because charter lobbyists wrote the law!

In this post, he describes some of the most flagrant abuses, several of which involve real estate and exorbitant rentals and leases that allow the charter company to pocket taxpayers’ dollars.

Here is one of the most flagrant abuses:

“The Columbus Primary Academy, part of the Imagine Schools charter chain, is saddled with a lease that requires exorbitant rent to Imagine’s for-profit real estate subsidiary. In two other states, federal courts deemed the leases “self-dealing’’ and ordered Imagine to pay $1 million fines. The latest state audit shows the academy’s current lease extends to 2033, while the latest state report cards shows the school continues to fail our kids.”

An inflated lease that runs through 2033 for a failing Charter School!

Why do Ohioans tolerate this misuse of taxpayer dollars?

How many more scandals will be exposed before the legislature stops waste, fraud, and abuse in the charter industry?

Bill Phillis, executive director of the Ohio Coalition for Equity and Adequacy, objects to the billions of dollars that have been diverted from public schools to privately managed charter schools.

He read lawyer Robert Amsterdam’s “Empire of Deceit”—about the Gulen Network of charters—and was outraged.

He wrote:

“Gulen organization receives 40 percent of the earnings of Turkish employees of charter schools

“Mustafa Emanet, a former H-1B employee of the Gulen organization, indicates that 40 percent of the salaries of Turkish employees in the Gulen charter industry are deducted from their paycheck, and additional contributions to Gulenists causes are required.

“Emanet provided a copy of the bylaws of Tuzuk to Robert Amsterdam, author of EMPIRE OF DECEIT: An Investigation of the Gülen Charter School Network. These bylaws specify salary schedules that are 40 percent below the actual salary.

“The Gulen Empire makes major contributions to Gulen-friendly politicians. Other perks include free trips to Turkey.

“It is amazing that some politicians put the nation at risk in exchange for perks and campaign contributions.

“Why are the news media organizations reluctant to delve into this matter? Just wondering…

“Robert Amsterdam’s book EMPIRE OF DECEIT: An Investigation of the Gülen Charter School Network is available online at http://empireofdeceit.com”

Audrey Amrein-Beardsley writes here to explain the importance of judicial decision to terminate VAM in Houston. Houston tied test scores to very high stakes. In one year alone, 221 teachers were fired based on their VAM scores.

Yet when the case went to trial, representatives of the district could not explain or justify the algorithms that determined the fate of teachers.

This case should be cited wherever VAM is used. It is an inexplicable and punitive formula that is incapable of evaluating teacher quality. It is a fraud.

This is why unions exist. No teacher has the resources to fight VAM. The union did, and he awarded the union its legal expenses.

I hope all those unjustly fired teachers get their jobs back.

Remember when privatizers came up with the “parent trigger?” It was 2010, right after the release of the charter propaganda film “Waiting for Superman,” and the “reformers” assumed that parents everywhere were longing to seize control of their public school and give it to a charter chain. They thought it was a brilliant idea to turn public schools over to the charter industry and use parents to do the deed. All that was needed was a petition that was sign ed by 50% of parents plus one, and the school could by law be privatized.

The first such bill was passed in late 2010 by the California Legislature. A charter enthusiast named Ben Austin created an organization called Parent Revolution, funded with millions from Eli Broad, Michael Bloomberg, the Waltons, and other billionaires. Parent Revolution sent organizers to poor communities to foment parent anger and collect signatures.

The producer of “Waiting for Superman” signed up star talent for another movie to promote the idea of the Parent Trigger. The movie was called “Won’t Back Down.” It failed at the box office and was the lowest grossing movie of the year.

Other states passed Parent Trigger legislation, on the assumption that parents were yearning to turn their public schools over to charter operators.

One of those states was Louisiana, which passed a Parent Trigger in 2012.

Mercedes Schneider reports here that the law is On the books, but no parent group has ever applied to turn its public school into a charter.

The only option for those who pull “the trigger” is to join the celebrated Recovery School District. Schneider lists the names of the Failing schools in the RSD.

Guess it is not that easy to fool parents into privatizing their schools.

Seven years after passage of the Parent Trigger law in California, either one or two schools have converted to charter status, and only after a bitter fight among parents about the validity of petitions. Its main effect is to divide communities.

How many millions were spent to convert one or two schools to charters? Billionaires probably for a tax write off. They don’t care.