Archives for category: Fraud

Clayton Christensen, the leading advocate of DISRUPTION, will address the “National Summit on Education Reform,” sponsored by Jeb Bush’s Foundation for Educational Excellence. He will speak on Thursday November 30 in Nashville, as Jeb’s group celebrates a solid decade of efforts to privatize public education. Don’t expect to see or hear about charter school frauds or the failure of vouchers to improve student test scores or the looting of public funds by virtual charter schools.

If you are going, be sure to read the debunking of disruption by Harvard professor Jill Lepore. She demonstrates that disruption is a fraud, a hoax. Even the business disruptions that Christensen boasts about were actually failures. “Disruption is a theory of change founded on panic, anxiety, and shaky evidence….”

Read Judith Shulevitz’s takedown of disruption in The New Republic, and how it has emboldened those who want to destroy public education and diminish democracy. Eli Broad’s love of disruption produced the failed leadership of Michelle Rhee and Joel Klein.

Shulevitz wrote (in 2013):

“But when Broad’s “change agents” move into the institutions they’ve been taught to shake up, as dozens have now done, we can see how disruption, well, disrupts—not just “the status quo,” but peoples’ lives. Teachers quit en masse or are fired. Nearby schools close, forcing students to travel to distant ones. School boards divide and bicker. Parents picket. Broad-affiliated superintendents all over the country—Atlanta; Philadelphia; Rochester, New York; Sumter, South Carolina—have resigned or been forced out after no-confidence votes, corruption or cheating scandals, or, in one case, the discovery of alleged irregularities with a doctorate degree.”

Bringing a disruptor into your school district is like inviting an arsonist into your home. You will have change aplenty, but you will lose your home and possibly your family.

Thanks to Bill Phillis of the Ohio Coalition for Equity and Adequacy for alerting me to this shocking and disgusting story.

A charter school sponsor, the Ohio Council of Community Schools, is responsible for 50 charter schools. It was exempted from any accountability because it split from its partner, the University of Toledo.

“The council and the university have been partners for 15 years in sponsoring – creating and overseeing charter schools – after the state decided to let more organizations beyond the Ohio Department of Education sponsor schools. While the university was the official legal sponsor, it created the council as a non-profit to do all the oversight work.

“The relationship has been a controversial one, drawing accusations over the years of favoritism and nepotism. See below for more on those concerns.

“Most recently, the state rated the two as “ineffective” as a charter sponsor last fall after their 50 schools landed an academic rating of zero – the equivalent of an F – as a group. Those schools include 11 in Cleveland.

“If student test scores did not improve by the end of this school year, the partners would have been booted out of the sponsorship business.

“Not anymore.

“By splitting from the university, the Council moves on with a clean slate and the poor results will be assigned to the university.”

No results. No accountability. State money wasted. Children’s education harmed.

Who are the criminals in state government who permit this fraud to continue.

Samuel Abrams is director of the Teachers College, Columbia University, Center on the Study of Privatization of Education. He wrote a wonderful book called “Education and the Commercial Mindset.” Most of the book is focused on the haplessness and failure of the for-profit Edison Project, which became Edison Schools, which became EdisonLearning, and which lost money, a lot of money. Abrams’ book represents deep scholarship into the consistent failures of for-profit education.

I reviewed it in the <em>New York Review of Bookss, along with Mercedes Schneider’s superb “School Choice.”

Barron’s just posted a negative review of the Abrams’ book by a reviewer who has made a career of besmirching public schools, teachers, and unions. He hates them all, so of course, he hates Abrams’ elegant expose of the profit motive in education. The reviewer is a polemicist, not a scholar, so he probably didn’t understand the book.

I don’t subscribe to Barron’s so I can’t post the review. You probably don’t subscribe either. I wish I could quote it but I can’t. I know it is hostile to Abrams’ scholarly work because the title of the review is “Slurring Charter Schools: A skewed defense of our failing public schools, and a hit job on Harvard Business School.”

But I know a great deal about the reviewer, Bob Bowdon.

Bowdon wrote and produced a “documentary” called “The Cartel,” in which he compared the teachers’ union in New Jersey to the Mafia. He is a familiar figure on far-right TV shows, where he bashes teachers and public schools.

Read his Wikipedia entry, where it says:

Bowdon directed The Cartel, a 2009 documentary film about corruption in American public education that was distributed by Warner Brothers.[1] The film views the current state of public schools in the U.S. as a “national disaster for the workforce of the future.” Bowdon notes that the U.S., by many measures, “spends more on education than any country in the world,” and chooses to concentrate principally on his own state, New Jersey, which spends more per student on public education than any other state, but where average standardized-test scores in public schools are very low. In an effort to explain where all the money allocated to public education is going, Bowdon portrays a union-dominated institutional culture in which bureaucracies are overstaffed by highly paid administrators, expenditures on school-construction projects are unsupervised and out of control, corruption and patronage are rampant, incompetent teachers cannot be fired, and excellent teachers cannot be rewarded. As a solution to the problem, Bowdon proposes school choice and charter schools.[3]

New Jersey Governor Chris Christie, who watched The Cartel twice, has praised it as an influence on his own ideas about school reform.[4][5]

When my book “The Death and Life of the Great American School System: How Testing and Choice Are Undermining Education” was published in 2010, I was invited to be interviewed by Judge Napolitano. I learned when I got there that I was going to debate Bob Bowdon. Judge Napolitano was on Bowdon’s side, and he said snidely, “would you allow any child of yours to attend a public school?” I vowed never again to appear on any show on FOX, as my experience left me feeling deeply outraged by their hostility to the views I had formed over 40 years of study. Bowdon knew nothing whatever about education, nothing whatever about teaching. All he knew was that privatization was good, public schools bad.

It is an ugly experience to get into the ring with someone who literally doesn’t know what he is talking about but is sure of his opinions.

The hits just keep on coming!

Betsy DeVos just hired a former dean from for-profit online DeVry University to police fraud in higher education.

DeVry was forced to pay $100 million for defrauding students.

Get a cup of coffee and sit down. John Oliver dissects Alex Jones, the rightwing provocateur who makes money saying insane things. Jones is the talk-show host who pushed the outrageous claim that the Sandy Hook massacre never happened, that it was staged by the federal government to promote gun control.

Oliver totally demolishes Jones’ credibility. Jones complained that his critics take his words out of context, so Oliver shows his remarks in full, in context. They don’t get any better.

This segment demonstrates the power of humor to inform and the power of evil to mislead.

Leonie Haimson assesses the latest test scores from New York. New York is still using the Common Core, but with a new name, so of course the majority of students in the state “failed,” which was the purpose of the Common Core standards, to make public schools look bad so that privatization would be easier to sell to the public.

Leonie has something that no one in the New York State Education Department has: a historical memory, clear knowledge of the frequent changes in cut scores, constant manipulation of the data.

Leonie writes:

“The NY state and city test scores were released this week. Proficiency rates statewide increased again though by a smaller amount than last year. In English Language Arts, the percentage of students in grades 3-8 who scored at proficient levels increased by an average of 1.9 percentage points; from 37.9% in 2016 to 39.8%. In math, the students who scored at proficiency rose to 40.2%, up 1.1 points from 29.1% last year.

“In NYC the increases were a little larger: a gain of more than two points in ELA proficiency to 40.6% and 1.4 points to 37.8% proficiency in math.

“Commissioner Elia, Mayor de Blasio and Chancellor Farina claimed that the increase in proficiency since 2013 was strong evidence that our students and schools are making progress.

Yet the reality is that the trends over the last 15 years have not matched any of the trends on the more reliable national test called the NAEPs, for either NYC or the state as a whole.

“In fact, the NY State Education Department has appeared unable since 2002 to produce a reliable test and score it consistently enough to allow one to assess if there’s been any sort of improvement in our schools. Instead, Commissioners and their staff have repeatedly changed cut scores and set proficiency rates to make political points.

“There are many ways to show increases in proficiency — a metric notoriously easy to manipulate — including making the tests easier, shorter, giving them untimed, and/or changing the scoring by lowering the raw scores to scale scores or the cut scores need for proficiency. The state has used all these tricks over time.”

Read it all. She nails the fraud perpetrated by the state and ignored by journalists.

Peter Greene reports that ECOT (the Electronic Classroom of Tomorrow) has found a way to escape its current woes and keep on collecting state money.

Having attracted the ire of the state for inflating enrollment, having lost its court battle to hang on to its profits for producing low-quality education, having been labeled the school with the lowest graduation rate in the nation, what’s an entrepreneur to do?

Go into the business of dropout recovery!

What a clever idea: First you create the dropouts, then you remediate them. Or claim to.

Another day, another charter scandal. This one is in Lauderhill, Florida, in Broward County.

“LAUDERHILL, Fla. – The Paramount Charter School was, by all accounts, a disaster for its young students, but now that the publicly financed, F-graded K-8 school is closed, there is a big question that remains: Where did the money go?

In all, taxpayers coughed up more than $3 million for the charter school in Lauderhill, which promised a first-rate education for its predominantly financially disadvantaged students.

“Now American Charter Development, the Utah-based charter school company that was Paramount’s landlord and primary investor, alleges it lost well over $1 million during the two years the school was in operation and suspects public funds were misappropriated.

“In our view, there’s been fraud,” Rob Giordano, senior vice president of business development at American Charter Development, told Local 10 News.

“Giordano said the company conducted its own examination of the school’s finances and found that, in addition to a nonprofit company that had been set up to run the school, called the Advancement of Education in Scholars Corp., there was a second for-profit company formed with an almost identical name.

“Giordano said his firm obtained Paramount bank documents showing large sums of money going to the for-profit company.

“It was tens of thousands of dollars in excess of $30,000 a month going to this shell organization,” Giordano said.”

Not to worry. This failed “public charter school” will be replaced by another. The taxpayers’ money? It’s gone, along with the time that children lost in this school.

Alan Singer pulls together the threads of charter school corruption across several states in this post. The corruption is pay-to-play. Give money to a politician and turn him or her into your advocate. Florida presents a different twist on the story: charter owners and employees and family members are elected legislators who shamelessly vote to enrich themselves. In Ohio, charter owners contribute to legislators who then turn on the money spigot and shower their benefactors with riches. In New York, Governor Cuomo accepts millions from billionaires who love entrepreneurial schools and hate public schools–and Voila!, Cuomo becomes a charter champion.

“In Arizona charter schools routinely receive exemptions from state oversight requirements, despite a history of misusing tax dollars. They also receive over 25% of state education funds, although they only enroll 15% of Arizona’s school age students. The right-wing Republican governor of Arizona was accused by the even further right-wing elected Superintendent of Arizona schools of establishing a “shadow faction of charter school operators” committed to “moving funds from traditional public schools to charter schools.”

“The reasons for the lack of accountability and the disproportionate state funding are examined in a report by Arizonians for Charter School Accountability. Among other things, they found that Benjamin Franklin, a for-profit charter school, is owned by Arizona State Representative Eddie Farnsworth (R). In 2016, the charter school spent $155,106 more on facilities than on classroom instruction. It leases its schools from LBE Investments, a for-profit real estate company also owned by Farnsworth.

“Arizona has a state board that grants charter status to “qualifying applicants” and is supposed to “oversee charter schools.” The President of the board is a political lobbyist who defines her role as promoting school “choice” and “sponsoring charter schools,” not regulating them. The Board Vice-President is founder of a charter high school. Other members include the operator of a charter school, a charter school teacher, a lawyer for charter schools, a building company CEO who also serves on the Board of Directors for the local Teach for America chapter, and the CEO of a charter school network.”

For the links, open the article.

In Atlanta, teachers were sentenced to prison under the RICO statute (racketeering) for cheating on tests and are out on appeal.

When, if ever, will public officials round up the criminals who are engaged in buying influence for the enrichment of charter schools? In too many states, the public officials who should enforce the law are charter operators or receive millions from charter operators. The charter industry starts to look like the Tweed Ring. Will it clean up its own act or is public corruption now woven into its fabric?

Peter Greene identifies the dirty secret of the charter industry. Two words. Real estate.

In Ohio, a charter lobbyist wrote the charter law for the state. When a charter operator insisted that he owned everything the charter bought with public money, the courts upheld him. It was in the law.

In Pennsylvania, charter schools own the property where the charter school is housed, and they charge rent. They charge rents above the market rate. The state doesn’t ask questions. The state doesn’t even notice that the charter operator owns the property and pays himself rent.

Greene offers a few examples from across the nation, and he didn’t even include Florida, where the charter scams are commonplace:

Carl Paladino, the notorious bad boy of the Buffalo school board, has made a mint in charter-related real estate deals. Not only does Paladino build the charters and lease them, but he builds the new apartment buildings near the shiny new school– a one-man gentrification operation. And he sits on the public school board, where he can vote to approve and support the growth of charters.

That’s not even the most astonishing sort of charter real estate scam. A 2015 report from the National Education Policy Center outlined what might be the worst. Take a public school building, built and paid for with public tax dollars. That building is purchased by a charter school, which is using public tax dollars. At the end of this, you’ve got a building that the public has paid for twice– but does not now own.

In February of this year, researchers Preston Green, Bruce Baker and Joseph Oluwole dropped the provocative notion that charter schools may be the new Enron. It’s a lot to take in, but Steven Rosenfeld pulled out five takeaways for Alternet, if you’d like a quicker look. But just some little factoids give you a taste. For instance, Imagine Schools take 40% of the money they collect from taxpayers and put that right back into lease agreements. In Los Angeles, owners of a private school leased room on their campus for a charter school that they were also involved in running– then jacked that rent up astronomically.

His article has links. Follow them. This is the most underreported story of the charter world: The big money is in the real estate, not necessarily the students.