Archives for category: Fraud

Jon Christian, writing in The Atlantic, reports that Facebook has not been successful in identifying and screening out fake news (Campbell Brown–a close friend of Betsy DeVos– was hired by Facebook to lead this effort earlier this year). No matter how outlandish the story or the headline, people will read it and believe it if it confirms their own views.

Facebook’s fact-checking efforts are on the rocks. Five months after the social-media giant debuted a third-party tool to stop the spread of dubious news stories on its platform, some of its fact-checker partners have begun expressing frustration that the company won’t share data on whether or not the program has been effective.

In the absence of that official data, a study by Yale researchers made waves last week by suggesting that flagging a post as “disputed” makes readers just a slim 3.7 percent less likely to believe its claim. Among Trump supporters and young people, the fact-checking program could even backfire: Those respondents were more likely to believe unflagged posts after they saw flags on others.* That concern was echoed earlier this year by the actor James Woods, who tweeted that a disputed tag on Facebook was the “best endorsement a story could have.”

The study—as well as ongoing revelations about how Russian troll farms might have used Facebook ads to meddle with the U.S. presidential election—has been stirring up the debate about whether and how social-media companies ought to police misinformation and propaganda on their platforms. Facebook claims that its efforts are working, and criticized the Yale researchers’ methodology, but a growing body of scholarship shows how difficult fact-checking has become online. With roots in old-fashioned cognitive biases that are amplified by social-media echo chambers, the problem is revealing itself to be extraordinarily difficult to fight at an institutional level.

Open the link to read the full article and the embedded links.

Facebook is no doubt the most powerful media platform in the world. If it spreads lies and conspiracy theories, this poses a huge problem for everyone. It is an especially big problem for a democracy, which relies on having an informed public. If the public is fed a steady diet of lies, the liars win.

The Founding Fathers believed that the great enemy of sound government was ignorance. They could not have imagined a world in which lies and propaganda are even worse than ignorance. And travel faster.

Heather Vogell, an investigative reporter writing for ProPublica and USA Today, reports that for-profit schools are handing out rewards to students who recruit other students or post positive reviews on Facebook. This practice shows the difference between a business—where the bottom line is profit—and a school, which is dedicated to education and human development.

Vogell writes:

“Lyla Elkins transferred to North Nicholas High School in Cape Coral, Florida, in 2016 with hopes of sailing through its computer-based courses and graduating early. She didn’t realize the for-profit charter school would also be a source of income: a $25 gift card each time she persuaded a new student to enroll.

“I referred almost all of my friends,” said Elkins, 17, who earned three gift cards. She also won a Valentine’s Day teddy bear in a raffle for sharing one of the school’s Facebook posts.

“Such incentives are rampant among for-profit operators of public alternative high schools like North Nicholas, which serves students at risk of dropping out. These schools market aggressively to attract new students, especially during weeks when the state is tallying enrollment for funding purposes. They often turn their students into promoters, dangling rewards for plugs on social media, student referrals or online reviews, a ProPublica-USA Today investigation found. Some also offer valuable perks simply for enrolling.

“The schools’ reality is often less inspiring than their promotions. While they face a daunting mission of salvaging students who struggled elsewhere, they’re characterized by high absenteeism, low graduation rates, little instruction from teachers and few extracurricular activities or elective classes. Their intensive recruitment, when coupled with poor outcomes, “is wrong on so many levels,” said Samuel E. Abrams, a professor at Columbia Teachers College and author of a 2016 book on for-profit education. “It’s not addressing the pedagogical needs of these kids.”

“It’s legal for schools to provide gift cards to students for referrals, and free electronic devices, such as tablets or computers, to newcomers. And students are free to express their opinions on their schools. But advertisements have less protection under the First Amendment, and some for-profit school promotions involving online posts or reviews may violate federal consumer safeguards.

“According to the Federal Trade Commission, companies that use students and other groups as social media marketers should instruct them to disclose publicly that they expect to be paid. In settlements with the FTC, companies that failed to encourage such disclosures have agreed to follow the law — or face a potential penalty of up to $40,000 per transgression. Those instances didn’t involve students.”

For-profit companies have no shame in exploiting their students to lure more students.

“Refer-a-friend programs like the one at North Nicholas are common in the sector. “Bring a friend into Mavericks!” said one 2015 Facebook post for a Palm Springs school in the for-profit Florida charter chain. “They will get help getting their diploma and you will get a gift card.” The post promised a $5 gift card for each referral as part of the “Friends & Family Club,” as long as the recipient had acceptable attendance and no disciplinary problems.

“Mavericks’ new parent company, EdisonLearning, hands out Walmart gift cards for student referrals at its “Bridgescape” schools in Illinois and Ohio. It posted pictures on Facebook this past spring of students displaying their prizes. EdisonLearning officials said the gift cards enable low-income students to buy essentials.”

Shameless.

Jeff Bryant, writing for the Education Opportunity Network, analyzes the U.S. Department of Education’s recent award of $253 Million to the Failing Charter Industry. He is especially appalled by the funding of charters in New Mexico, whose state auditor has identified numerous frauds in the charter sector, and whose public schools are shamefully underfunded.

He writes:

“Previous targets for federal charter grants have resembled a “black hole” for taxpayer money with little tracking and accountability for how funds have been spent spent. In the past 26 years, the federal government has sent over $4 billion to charters, with the money often going to “ghost schools” that never opened or quickly failed.

“In 2015, charter skeptics denounced the stunning selection of Ohio for a $71 million federal chart grant, despite the state’s charter school program being one of the most reviled and ridiculed in the nation.

“This year’s list of state recipients raises eyebrows as well.

“One of the larger grants is going to Indiana, whose charter schools generally underperform the public schools in the state. Nearly half of the Hoosier state’s charters receive poor or failing grades, and the state recently closed one of its online charter schools after six straight years of failure.

“Another state recipient, Mississippi, won a federal grant that was curiously timed to coincide with the state’s decision, pending the governor’s approval, to take over the Jackson school district and likely hand control of the schools to a charter management group.”

(Coincidentally, Stephen Dyer just posted about Ohio’s scandal-plagued charter sector. He wrote that nearly one-third of the charters that received federal funding never opened or closed right after they got the money, I.e., they were “ghost schools.”)

Worst of all, writes Bryant, is the $22.5 Million that will be sent to New Mexico, which has high child poverty and perennially underfunded public schools, as well as a low-performing charter sector.

What possible reason is there to fund a parallel school system when the state refuses to fund its public schools?

“According to a state-based child advocacy group, per-pupil spending in the state is 7 percent lower in 2017 than it was in 2008. New Mexico is also “one of 19 states” that cut general aid for schools in 2017, with spending falling 1.7 percent. “Only seven states made deeper cuts than New Mexico.”

“New Mexico’s school funding situation has grown so dire, bond rating agency Moody’s Investors Service recently reduced the credit outlook for two-thirds of the school districts in the state, and parent and advocacy groups have sued the state for failing to meet constitutional obligations to provide education opportunities to all students.

“To fill a deficit gap in the state’s most recent budget, Republican Governor Susana Martinez tapped $46 million in local school district reserves while rejecting any proposed tax increases.

“Given the state’s grim education funding situation, it would seem foolhardy to ramp up a parallel system of charter schools that further stretches education dollars, but New Mexico has doubled-down on the charter money drain by tilting spending advantages to the sector.”

To make matters worse, charter schools are funded at a higher level than public schools, and the state’s three online charters operate for profit. Despite their funding advantage, the charters do not perform as well as public schools. There is seldom any penalty for failure.

The state auditor in New Mexico has called attention to frauds and scams that result from lack of oversight in the charter industry.

So the U.S. Department of Education under Betsy DeVos is now in the business of funding failure. Quality doesn’t matter. Ethics don’t matter. Undermining the educational opportunity of the majority of children doesn’t matter. For sure, money matters, but only when it is spent for privatization.

A few pundits predicted that DeVos would be unable to inflict harm on the nation’s public schools. They were wrong.

At the same time that Betsy DeVos is shoveling millions more dollars for charter schooos, states are unable to keep track of frauds and misappropriation of funds by charter owners.

The state auditor in New Mexico warned then-State Commissioner Hanna Skandera, but she didn’t listen. Like her mentor Jeb Bush, she believes in non-regulation of charter schools.

So this happened:

For six years, La Promesa Early Learning Center’s former assistant business manager allegedly diverted nearly half a million dollars from the school into her personal bank account and deposited about $177,000 worth of questionable checks.

Like all state charter schools, La Promesa was audited annually by an independent firm – a process organized by the New Mexico Public Education Department.

But the alleged fraud and embezzlement were not detected until a vendor called the Office of the State Auditor’s confidential hotline in April to report a suspicious tax form.

So how did years of alleged financial misconduct get past the audits?

State Auditor Tim Keller told the Journal that the problems at La Promesa are part of a larger pattern.

“This isn’t just about one instance, the state needs to do a whole lot more supporting and overseeing of our education dollars to protect them from fraud, waste and abuse,” Keller said in an emailed statement.

“Over the last several years, we’ve urged the Public Education Department to step up oversight and provide the training and support our schools need to succeed. Unfortunately, by the time the Department stepped in at La Promesa, nearly $700,000 was already gone.”

Tom Ultican left a career in Silicon Valley to become a high school teacher of physics and mathematics. He is one of our most perceptive critics of the role of technology in schools, having lived in both worlds: high-tech and high-school.

In this important post, he lays waste some of the most pernicious frauds of our times.

There is a great deal of optimism about the tech market in schools, but none of it is about making schools better. It is about making money for investors.

He begins:

Last year, IBIS Capital produced a report for EdTechXGlobal stating, “Education technology is becoming a global phenomenon, … the market is projected to grow at 17.0% per annum, to $252bn by 2020.” Governments in Europe and Asia have joined the US in promoting what Dr. Nicholas Kardaras called a “$60 billion hoax.” He was referring specifically to the one to one initiatives.

An amazing paper from New Zealand, “Sell, sell, sell or learn, learn, learn? The EdTech market in New Zealand’s education system – privatisation by stealth?” exposes the promoters of EdTech there as being even more bullish on EdTech. “The New Zealand business organisation (they spell funny) EDTechNZ, indicates on its website that educational technology is the fastest growing sector of a global smart education market worth US$100 billion, forecast to grow to US$394 by 2019.”

These initiatives are fraud based agendas because they focus on advancing an industry but are sold as improving schools. Unfortunately, good education is not the driver; money is.

He writes:

The trumpeting of a “STEM shortage crisis in America” is and always was a hoax. This same con is deforming public education. The new Common Core State Standards and the Next Generation Science Standards were motivated respectively by Bill Gates (Microsoft) and Louis Gerstner (IBM). As a result they devalue humanities and glorify science and engineering based on this same fraudulent STEM claim. There must be a thousand charter schools that advertise themselves as STEM academies.

Here in California this same lie is being used to promote yet another attack on local control of public schools. In July, Raul Bocanegra (D-San Fernando) announced new legislation that would create a State authorized STEM school for 800 students. It would be privately managed and sited in Los Angeles county.

The news organization Capital and Main stated, “For a district that is already the largest charter school authorizer in the nation and is still gun-shy after recently fending off a takeover attempt by billionaire school choice philanthropist Eli Broad, any scheme that promises further stratification is an existential threat.”

Eli Broad wanted a STEM school to call his own but paid for with public money, and the state’s two major newspapers thought it was a grand idea to let a billionaire get a school just because…he is a billionaire:

It seems the fourth estate no longer ferrets out fraud and corruption but is instead complicit in these nefarious plots.

In the age of Trump, investigative reporting doesn’t matter. Nor does principle. Money matters.

Of course, technology can be well used, but what is happening today is that technology is being used to replace human contact. That is a mistake and a fraud.

Hi-Tech and digital initiatives are careening down a dark road. Because of the extreme power of hi-tech corporations like Apple, Google, Microsoft, IBM, and many others, the development of education technology is being driven by their needs and not the needs of students. Students have become their guinea pigs as they release one untested technology after another into America’s classrooms.

Technology has a potential to enhance education but it also has the potential to cause great damage.

A century ago, there were people taking correspondence courses and getting great value from them. Today, the modern equivalent of the correspondence course is the online class.

However, students at screens like correspondence students will never achieve equal benefit to students with a teacher, because the teacher-student relationship is the most important aspect in education.

Teacher-student relationships are different than those with friends, parents or siblings. My personal experience was that I felt a genuine selfless lover for my students and we communicated about many things; often personal but mostly academic. I also felt a need to protect them. In America’s public schools, a student might have that kind of close relationship with more than 40 adults during their 12 years in school. This is where the great spark of creativity and learning leaps from teacher to student.

I have put students at screens in my career, but I never found great benefit in the exercise. On the hand, I have found technologies like graphing utilities to be highly beneficial, but it was the interaction with my students that was of most value for deep learning, enhancing creativity and developing a love for learning. If technologies destroy these relationships then they become a net evil.

Here is his ominous conclusion. We ignore it at our peril, and the peril of our youth:

A faculty colleague of mine said, “the last thing 21st century students need is more screen time.” I believe Jean M. Twenge, professor of psychology at San Diego State University and the author of Generation Me and iGen would enthusiastically agree. She recently wrote an article for Atlantic magazine describing the dangers of screen time to the current teen generation she calls the iGen. Based on her research she said,

“Teens who spend three hours a day or more on electronic devices are 35 percent more likely to have a risk factor for suicide, such as making a suicide plan. (That’s much more than the risk related to, say, watching TV.)”

“The results could not be clearer: Teens who spend more time than average on screen activities are more likely to be unhappy, and those who spend more time than average on nonscreen activities are more likely to be happy.”

“There’s not a single exception. All screen activities are linked to less happiness, and all nonscreen activities are linked to more happiness.”

“In 2011, for the first time in 24 years, the teen suicide rate was higher than the teen homicide rate.”

Obviously, many of our institutions have been corrupted by the immense power of concentrated wealth and especially by hi-tech industries. The money being chased is enormous, but there are more of us. If we educate ourselves, our families and our neighbors we can reform these greed driven forces into forces for good, but we need to pay attention.

Ohio legislators and the State Department of Education continue to fund the Electronic Classroom of Tomorrow, despite scandal after scandal.

Phantom students. The lowest graduation rate of any school in the nation.

And now auditors discover that ECOT overbilled the state by another $20 million last year, by inflating the number of students it claimed to enroll.

Read the article to see what an awful “school” this is. Only 2.9% of its graduates earn a college degree within six years.

What an amazing trick can be accomplished with campaign contributions! Ohio officials should be ashamed.

Betsy DeVos apointed her friend and ally in the school choice movement, former Governor of Michigan John Engler, as chair of the National Assessment Governing Board, which administers the National Assessment of Educational Progress.

Engler is a charter member of the “schools-are-failing” club. He recently retired as president of the Business Roundtable, an association representing some of the nation’s leading businesses, and before that was head of the National Association of Manufacturers.

Expect every release of NAEP scores to be a dire warning about how terrible our public schools are, how we are no longer globally competitive, and why we need drastic steps (school choice?) to close the achievement gaps.

Maybe some enterprising journalist will ask Engler about the failure of his reforms in Michigan, as reflected in NAEP scores. Since Michigan became a laboratory for choice, its NAEP scores plummeted.

As a seven-year member of that board, I can tell you we zealously protected the scores from politicization. Don’t expect Engler to maintain that tradition.

Jan Resseger writes here about the fate of legislation that would establish accountability for the Electronic Classroom of Tomorrow (ECOT), which is the worst performing school in the state and is owned by one of the biggest donors to Republican politicians.

ECOT has a bad habit of claiming tuition for students who are theoretically enrolled but never turn on their computer. There apparently are thousands of phantom students. The state has attempted to claw back millions of dollars from ECOT but ECOT has fought them in court.

Can William Lager, owner of ECOT, ever be held accountable for his collection of hundreds of millions of dollars from Ohio taxpayers? It will be settled in court. Unfortunately, Lager has contributed to the campaigns of several judges on Ohio’s Supreme Court.

The law needs fixing, to protect students and taxpayers:

Ohio State Senator Joe Schiavoni ought to be a hero to public school teachers and parents—and to citizens who support responsible stewardship of tax dollars. Except that thanks to the power of the Republican leadership in the Ohio legislature, few people are really aware of Schiavoni’s heroic effort to put a stop to Bill Lager’s massive scam—the Electronic Classroom of Tomorrow.

Schiavoni is a Democrat and his bill to regulate online charter schools has been pushed aside for over a year now. As Schiavoni explained in testimony last February, “Senate Bill 39 is the updated version of Senate Bill 298 from the last General Assembly.” In March of 2016, Schiavoni first introduced a version of this bill—designed to reign in Bill Lager’s giant scam. ECOT was (and still is) charging the state, which pays charter schools on a per pupil basis, for students who have enrolled at ECOT but are not regularly logging onto their computers to participate in the educational program.

Here is how Schiavoni described the bill (then Senate Bill 298) at that time: “We need to make sure that online schools are accurately reporting attendance and not collecting tax dollars for students who never log in to take classes. Online schools must be held accountable for lax attendance policies. Without strong oversight, these schools could be collecting millions of dollars while failing to educate Ohio’s school children.” Schiavoni’s bill required e-schools to keep accurate records of the number of hours student spend doing coursework. It required online schools to notify the Ohio Department of Education (ODE) if a student failed to log-in for ten consecutive days. It required that a qualified teacher check in with each student once a month to monitor active participation. In the last legislative session, the bill was never fully debated and never brought to the Senate floor for a vote.

Schiavoni re-introduced the bill in February, and this afternoon at 3:15, Peggy Lehner, the chair of the Senate Education Committee, is finally holding a hearing on Schiavoni’s bill. When he testified in February about the bill he was introducing, Schiavoni explained why it is needed: “Other than the requirement that e-schools provide no less than 920 hours per year of learning opportunities, there are no specific statewide standards related to the number of hours per day or week that e-school students must be engaged in learning. In an environment where a teacher is not physically able to see students in a classroom, this lack of accountability is very concerning.”

Schiavoni believes Senate Bill 39 will address the outrageous problems at Ohio’s on-line charter schools: “Senate Bill 39 requires each e-school to keep an accurate record of how long each individual student is actively participating in learning in every 24-hour period. This information must be reported to ODE on a monthly basis, and ODE would be required to make this report available on their website. Senate Bill 39 would also require a teacher who is licensed by the Ohio Department of Education to certify the accuracy of student participation logs… on a monthly basis.”

The New Mexico Attorney General demanded that a charter founder resign, but she refuses to do so.

You think taxpayers just don’t care what happens to their money? You think taxpayers think that anyone should step up and claim public money and do with it as they please?

New Mexico Attorney General Hector Balderas is demanding the immediate resignation of Analee Maestas from the Albuquerque Public Schools Board of Education after fraud and embezzlement allegations involving the charter school she founded and managed.

“School board members have a duty to treat their position as a public trust and at all times act in a manner that justifies the public’s confidence in them,” Balderas said in a statement.

Balderas emailed a letter to Maestas on Monday saying “it is clear that you are no longer qualified to hold your position as a board member” and that if she did not immediately resign, “my office will take all appropriate legal actions.”

Maestas’ attorney, Marc M. Lowry, said she has no plans to step down.

“The Attorney General’s letter is more concerned with capturing a headline than it is with the pursuit of the truth,” Lowry said in an emailed statement.

“Dr. Maestas has not engaged in any conduct that violated her oath of office with the APS Board, or any other law. Dr. Maestas has brought over 45 years of experience and commitment to childhood education to uphold her oath to APS and maintain the public’s trust, and used her APS office only to advance the public benefit. The Attorney General is wrong to suggest otherwise.”

Balderas’ letter mentions two reviews by state Auditor Tim Keller that found serious problems with apparent misuse of funds regarding La Promesa Early Learning Center, the charter school Maestas started in 2008.

This month, Keller released a report that said it appeared Maestas’ daugther, the school’s then-assistant business manager, had embezzled nearly $500,000 under the watch of Maestas. And an earlier report in February 2016 showed that the school submitted a suspicious receipt to the New Mexico Public Education Department for reimbursement when Maestas claimed the $342.40 invoice was for carpet cleaning at the school. However, it appeared the receipt had been written over and the cleaning company reported that it actually worked on ducts at her home.

In his letter, Balderas wrote that “those investigations appear to implicate potential violations of numerous criminal and civil statutes.”

“While those matters are pending, the New Mexico Constitution does not require that you be found guilty of any conduct related to them to be declared unfit to hold your office, and your oath to uphold the very same Constitution now demands your resignation,” he wrote to Maestas.

But Lowry said that “if the Attorney General had read the State Auditor’s report, he would understand that Dr. Maestas is innocent, and that the State Auditor did not make a single finding suggesting that Dr. Maestas participated in that report’s allegations of embezzlement or fraud.”

Last week, Maestas denied any knowledge of the financial mismanagement at her school and blamed her daughter’s substance abuse problems.

Julieanne Maestas diverted about half a million dollars from the charter school into her personal bank account from June 2010 to July 2016, according to Keller’s investigation. In addition, she deposited about $177,000 worth of checks that were payable to the former executive director – her mother – as well as to her boyfriend, who was a school vendor.

This looks like a good deal for the leaders of a charter school who were accused of misappropriating
Ropristing $3 million for their personal use. No jail time. A payback of $600,000 and pocket change. And an agreement not to lead any other charters until 2020. The fines apparently will be paid by insurance companies, not the defendants.

“The former leaders of a public charter school for disabled and at-risk teenagers have agreed to settle a District lawsuit alleging they sought to enrich themselves by diverting millions of dollars in taxpayer money meant for the school into private companies they created.

“Donna Montgomery, David Cranford and Paul Dalton, all former managers at Options Public Charter School, agreed to a collective settlement of $575,000, which will be paid to the school that now operates under new leadership as Kingsman Academy. Jeremy Williams, a former chief financial officer of the D.C. Public Charter School Board, who allegedly aided the scheme, agreed to a settlement of $84,237 in a separate deal signed last week. The defendants agreed that they would not serve in a leadership role of any nonprofit corporation in the District until October 2020.

“This settlement ensures that more than $600,000 in misappropriated funds will now go to Kingsman Academy to serve disabled students in the District of Columbia, and will deter future wrongdoing,” said Robert Marus, a spokesman for the Office of the Attorney General. “As the referees for the District’s nonprofit laws, our office will continue to bring actions against any who would misuse funds meant for public or charitable purposes.”

“A statement issued by attorney S.F. Pierson, who represents Dalton, said all three former managers “continue to contest the District’s claims and continue to maintain their position that they managed Options to the highest standards.” Pierson said the former school leaders are “not personally paying” anything to settle the District’s claims. It’s common that insurance plans cover litigation-related costs for nonprofit directors or corporate officers.”

This is a big win for the accused, but a loss for the disabled students, who didn’t get the services intended for them.