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North Carolina: Employee of State’s Largest Voucher School Pleads Guilty to Embezzling $400,000

By dianeravitch
June 29, 2017 //
31

Isn’t it great to be free of people watching over your shoulder when you are in charge of the money?

That’s what the employee of North Carolina’s largest voucher school thought. He just pleaded guilty to embezzling $400,000 over an eight-year period from the school.

Lindsay Wagner writes:

Heath Vandevender is a coach, teacher and the employee tasked with managing the payroll operations of the state’s largest private school recipient of state-funded vouchers—Trinity Christian School located in Fayetteville.

In a Wake County courthouse this week, Vandevender pleaded guilty to embezzling nearly $400,000 in employee state tax withholdings over an eight year period while serving in his capacity at Trinity Christian.

Vandevender entered into a plea deal struck with the state, whereby he will serve 3 months in prison, pay a $45,000 fine and be placed under supervised probation for five years. He will also serve 100 hours of community service. Vandevender has already repaid the nearly $400,000 owed to the state.

The basketball coach and journalism teacher will still be able to work at Trinity Christian, which is run by his father, Dennis. As a part of the plea deal, Vandevender will likely serve his incarceration at night while teaching, coaching, and—presumably—continuing to manage payroll operations during the day as part of a work release option.

Vandevender was charged earlier this year with embezzling $388,422 between Jan. 1, 2008, and Dec. 31, 2015, from Truth Outreach Center Inc., located in Fayetteville. Trinity Christian School, which has received more than $1 million in publicly-funded school vouchers since 2014, operates under the Truth Outreach Center’s umbrella.

Categories Fraud, North Carolina, Vouchers

The Corporate Raid on Public Schools in Indianapolis: School Board Election Corrupted by Dark Money

By dianeravitch
June 28, 2017 //
5

At the recent school board meeting of Indianapolis Public Schools, Professor Jim Scheurich of Indiana University-Purdue University in Indianapolis got up to speak. The story he tells is similar to what happened in Denver, where Stand for Children, DFER, and other conduits for anonymous donors bought every seat on the elected school board, swamping the opposition with cash they could not match.

This was his testimony:

“My name is Dr. Jim Scheurich.

“I have been a professor of education for 25 years, first at the University of Texas at Austin and then at Texas A&M University and now at IUPUI.

“Throughout those 25 years, I have studied school success in urban districts, even winning a couple of major national awards as a scholar.

“Based on having studied some of the best urban districts in the country, I would have to say that the IPS school board and administration are among the lowest quality I have seen.

“This conclusion is particularly evident in the many negative issues that have arisen in the school closing processes and decisions.

“What I want to address about these negative issues is how we came to have this particular school board that follows an agenda that consistently disregards what the community wants, like closing legacy high schools.

“Up until 2010, an ordinary citizen of Indianapolis could win a school board seat for $3-5,000.
Starting in 2012, Stand for Children and the Mind Trust provided over $50,000 each for their candidates. Over the last 3 elections, Stand for Children and the Mind Trust have provided around $1.5 million to elect all but one school board member, Elizabeth Gore.

“This means that six of the seven board members became board members through the purchase of our local democracy. This means they owe their allegiance to the agenda of Stand for Children and the Mind Trust and NOT to the Indianapolis community.

“It seems to me that the big money election of these six board members is certainly anti-community and anti-democracy.

“But this is not the end of this scary story.

“The $1.5 million spent on the last three elections flowed through Stand for Children that used a tax designation, 501c4, to hide the source of that money and the ways they spend it.

“Why would Stand for Children and the Mind Trust try to hide the sources and spending of all of this money if they are as community oriented as they say they are?

“What they don’t want you to know is that much of this big money is coming from wealthy individuals and organizations from all around the country.

“Because then you might ask why do wealthy folks who may never set foot in Indianapolis want to buy our school board?

“You also might ask why the same wealthy folks from around the country are doing exactly the same agenda in 35 other urban centers.

“Why are wealthy folks from around the country purchasing so many urban school boards? Why are these 35 purchased school boards following the same agenda, like closing legacy high schools and supporting the opening of charter high schools?

“We in Indianapolis do not want to follow some national agenda created by wealthy individuals and organizations from outside Indianapolis.

“Instead we want to follow an agenda that is Indianapolis centered and focuses on the voices and needs of ordinary Indianapolis people of all races and incomes.

“And, thus, what we don’t need is any closing of our legacy high schools.”

Categories Billionaires, Charter Schools, Closing schools, Corporate Reform, Democracy, Education Industry, Fraud, Indianapolis, Privatization, Stand for Children

Ohio: State Auditor Reprimands ECOT for Using Public Money to Lobby Against Penalty of $60 Million

By dianeravitch
June 28, 2017 //
11

ECOT is the largest virtual charter school in Ohio and among the lowest-performing schools in the state. It has thrived over the years because its founder, William Lager, has given generously to elected officials. The New York Times reported last year that ECOT had the largest graduating class in the nation, but also the lowest high school graduation rate in the nation.

The Electronic Classroom of Tomorrow, an online charter school based here, graduated 2,371 students last spring. At the commencement ceremony, a student speaker triumphantly told her classmates that the group was “the single-largest graduating high school class in the nation.”

What she did not say was this: Despite the huge number of graduates — this year, the school is on track to graduate 2,300 — more students drop out of the Electronic Classroom or fail to finish high school within four years than at any other school in the country, according to federal data. For every 100 students who graduate on time, 80 do not.

Virtual online charters, said the Times, are the new “dropout factories.”

Having abysmal results was not enough to cause a problem for ECOT. If it were a brick and mortar public school, it would have been closed down.

What caused a problem was that the state audited ECOT’s attendance and found that a substantial number of students were phantom. They either did not exist, never logged on, or logged on for a minute or two.

The state sued ECOT, and won a decision that ECOT owed the state $60 million for inflated attendance numbers. ECOT maintains that the state has no right to audit their numbers. Ha.

Now ECOT is flooding the TV space with heartrending advertisements about how the state is picking on the school. And, here is a true demonstration of chutzpah: ECOT is using taxpayer money to pay for the ads defending its right to avoid auditing.

State Auditor Dave Yost has called out ECOT for its audacity. Yost has ordered ECOT to stop using taxpayer dollars to attack the court’s order to repay the state $60.4 million.

Ohio Auditor Dave Yost has ordered ECOT to stop using taxpayers dollars on television ads attacking the state Department of Education’s decision to seek repayment of $60.4 million, saying the commercials are not proper expenditures “and are impermissible.”

In a letter to the giant online charter dated Friday, Yost said he was writing ECOT “to demand that you act without delay to cease and desist the expenditure of public funds” being used for ads.

ECOT has not yet responded, but it is maneuvering in the Legislature to get the debt deferred until it has time for more appeals.

In the latest ad, signed at the end by “Ohio’s children,” a former ECOT student says: “The Ohio Department of Education wants to end school choice and stop parents from deciding what’s best for their children. That’s why I and the over 36,000 students and alumni of ECOT are hoping our elected leaders fix what’s broken and save our school.”

Thank you, Auditor Yost, for upholding the law and requiring accountability even from a big campaign contributor!

As for ECOT, its results speak for themselves: Close it down.

Categories For-Profit, Fraud, Ohio, Virtual Charter Schools

Florida: The Legislature’s Plan to Destroy Public Schools and Enrich Their Cronies

By dianeravitch
June 26, 2017 //
17

Kathleen Oropeza of the parent group Fund Education Now has prepared an analysis of the destructive law passed by the Florida legislature and signed by Governor Rick Scott. To read the links, go to the post here.


HB 7069: Florida’s K-12 nightmare foreshadows the nation’s future

The Florida legislature set a dangerous precedent this year. One that will no doubt be repeated in GOP-controlled states across the nation.

Speaker Richard Corcoran and Senate President Joe Negron under scrutiny from Gov. Scott negotiated every major public education policy into HB 7069 and designed the K-12 budget under a transactional cloak of darkness – locking out everyone but themselves. Each man had his own rigid demands heavily supported by outside influence. Senators and Representatives were rendered so insignificant they should have stayed home.

Secret deals

Scott wanted funding restored to Visit Florida ($86M) and Enterprise Florida ($75M), a corporate incentive slush fund. Negron wanted funding and changes to higher Education and a reservoir near Lake Okeechobee. Corcoran wanted to enact a sweeping assault on public schools setting up Florida to be the poster child for the privatizing “choice expansion” soon to be rolled out by U.S. ED Secretary DeVos. To coerce passage, they included mandated recess and the Gardiner ESE voucher expansion, both bills that would have passed on their own. Politicians have used Florida’s public school children either as collateral or an “acceptable loss” for far too long.

As a result, HB 7069 emerged eligible only for a single up/down vote. No debate.

Derivative of 55 other bills, the only supporters of HB 7069 were the Koch Bros, Jeb’s Foundations and the charter industry lobby. Without exception, legitimate parent groups, who sent over 150,000 letters, joined stakeholders ranging from teachers to districts and superintendents in opposition of this bill.

Florida has been in the throes of a devastating public K-12 “reform” policy experiment for twenty years. Jeb Bush weaponized the Florida “A-F Accountability System” with high stakes tests, mandatory retention, school grades that mostly reflect zip codes and a profound disrespect for professional educators.

Thanks to HB 7069, even highly effective teachers are no longer sure of a job the following year. Florida politicians consistently talk about placing the best teachers in Title 1 schools where they may no longer be ranked “highly effective.” The Best & Brightest Bonus expansion in HB 7069 effectively punishes these teachers. As a result, politics are stifling the ability of teachers to serve at risk students by denying even the smallest gesture of job security.

Universally opposed by advocates

Every public education advocate in the nation should be concerned about what Florida is doing. The state’s longstanding 3:1 ratio of GOP to Democrats makes political balance impossible. This session, Speaker Corocran made no attempt to hide his contempt for public education. He began by calling teachers “downright evil, crazy, disgusting and repugnant.” HB 7069 disrespects the authority of duly elected school boards by forcing them to share their only capital outlay money with corporate charter chains. In addition, the state gives charters up to $100M per year from Public Education Capital Outlay funding derived from a telecommunications tax. Districts never see a dime!

Of course, Corcoran accuses them of whining, “It’s their bloat, inefficiency and gross over-spending. Their problem is their mismanagement…They just want to build Taj Mahals.” This deception ignores the fact that the Florida legislature has refused to invest any additional funds in K-12 education since 2008. Gov. Scott is proud that the 2017 budget includes a paltry $100 extra per student for just one year. Thanks to HB 7069 that money is already spent on new students, making up for lost capital funding and attempting to rescue programs that will be cut due to the shift in Title 1 expenditures.

Hostile to public education

Perhaps the worst policy found in HB 7069 is the $140 million dollar “Schools of Hope” which forces districts to either immediately close “D” and “F” schools or permanently hand them over to for-profit charter chains with zero history of successfully mitigating the impact of generational poverty. There’s no guarantee that these struggling students will actually attend a “school of hope.” This program is designed to escalate the takeover of district schools by a corporate charter chain.

Further, legislators purposely ignore proven public school successes such as the Evans Community School in Orlando.

People are angry about HB 7069. All indications are that it will be an issue in the 2018 mid-term elections. Sen. Gary Farmer is mulling over a lawsuit concerning the legality of using legislation to strip constitutionally granted authority from school boards.

Voucher mission creep

Gov. Scott chose to sign HB 7069 at an ESE Catholic School knowing that DeVos intends to kill the separation of church and state and pursue publicly funded vouchers for religious schools. Knowing that intent might not be well received, Scott used the expansion of the Gardiner ESE voucher as a beard to avoid praising the divisive contents of the bill. The Gardiner ESE voucher is another corporate tax credit that forces recipients to leave the state K-12 school system, giving parents the ability to choose an education for their child devoid of standards or any accountability. Make no mistake this program encourages mission creep toward Jeb and Betsy’s dream of universal vouchers. And some form of ESE voucher will be coming to your state, if it hasn’t already.

Jeb, along with the Milton Friedman Foundation and a formidable slew of “Return on Investment” billionaire philanthropists ranging from Bill Gates to Betsy DeVos share a singular view. Instead of truly wanting every child to get an excellent education, they are obsessed with liquidating our greatest public asset for the sake of profit and “choice” ideology.

Profit over people

Florida’s history of unmitigated charter growth is a tale of wasted tax dollars, scandal, closed schools and abandoned students The latest charter school fraud involves Newpoint Charters, racketeering charges and $57 million up in smoke.

Study the contents of HB 7069 carefully. This bill was born of secrecy, power-hoarding and deceit. It’s a blatant strategy to pass hostile pieces of legislation that could never be voted up alone. It’s a clear-eyed warning that the profiteers coming to dismantle Florida public schools will not be contained to a single state.

What’s in Florida’s HB 7069?

Title 1 Funds

• Redirects and dilutes Title I funds currently used by districts to provide a variety of district-wide programs that benefit some of the most vulnerable students.
• Eliminates district-wide programs currently funded with a portion of Title I money such as, AVID, mentorship programs, and some services offered by school transformation offices.

School Districts must give Charters a portion of locally levied capital outlay funding

• Requires school districts to share locally derived capital outlay funds with charters leaving a huge deficit in the sole funding source used by school boards to build, maintain and improve schools. Ex: Palm Beach County district expects to lose at least $230 million over 10 years; Broward County will lose at least $300 million over 10 years.
• Districts must prove need, charters do not.
• Once this capital outlay funding is shared, private corporations are free to keep the money to invest in buildings and improve property that the public will never own.
• No language to prevent taxpayer funds for capital projects from enriching for-profit corporate charters

Schools of Hope/High Impact Corporate Charter welfare (line 184)

• Creates the “Schools of Hope” program, funded with $140 million by the legislature for out of state charters to take over the education of the most vulnerable students in Florida with zero proof that there is any record of success in turning around schools
• Redirects further funding from traditional public schools and provides a corporate welfare program for charters.
• Does not require the charters to service the students in the schools that they are taking over.
• Increases the number of schools subject to charter take over because it requires school districts to prepare emergency plans if any school in the district earns a “D” or “F”
• Language from HB 7101, including the mandate that school districts use a standard contract and any amendments to the contract are deemed to violate charter schools flexibility per statute
• Allows charters to use district facilities at a deeply discounted rate that my not reflect the fair market value of properties.
• Allows just 25 schools from districts to compete for Schools of Hope funding – If Florida invested in struggling schools, Schools of Hope would be redundant

Charters get to grade District public schools

• Permits charter schools to “grade” school districts on their performance
• Does not allow for school districts to do the same to charters

Charter School Land Use

• Allows charter schools to bypass any land use or zoning requirements of local jurisdictions
• Preempts the authority of local jurisdictions and doesn’t permit local community participation on land use or zoning decisions that potentially affect their property uses and values
• Doesn’t allow for local governments or local citizens to evaluate the impacts on their communities caused by charter schools on issues such as traffic capacity and consistency with approved uses already in place
• School districts are not given the same flexibility as corporate charter chains.

Charter access to public facilities

• Allows charters to use district facilities at a deeply discounted rate that my not reflect the fair market value of properties.
• Requires districts to report to DOE if any facility or portion of a facility is vacant, underused, or surplus.
• Expands the current requirement of reporting surplus properties.
• Could result in a charter school operating simultaneously as an operating public school, affecting the ability of a district to properly plan for future growth.
• Grants charter schools sovereign immunity equal to what public entities currently have under state law.

Charters can hire non-certified teachers

• Allows “Schools of Hope” to hire non-certified teachers and administrators.
• These teachers and administrators are servicing some of the most vulnerable students in Florida.
• Why would the standards for these teachers and administrators be lowered?

Exempts corporate charter chains from paying for District services

• Caps the administration fees a school district may charge a charter for educational services.
• Exempts Charters from paying for additional services outside the agreed administrative fee, causing Districts to subsidize the cost of these extra services
• Impedes a district’s ability to provide adequate educational services for students enrolled in its district.

Charters Usurp Superintendent Authority/Schools of Excellence

• Mandates that a school of excellence be a part of the principal autonomy program which attempts to usurp superintendent powers under the constitution.
• Caps the administration fees a school district may charge a charter for educational services.
• If a district provides additional services to a charter outside what is contemplated with the administrative fee, it would result in school districts having to subsidize charter school programs and potentially affect a district’s ability to provide adequate educational services for students enrolled in its district.
Charters Usurp locally elected school boards
• Grants charter school systems governing board a designation as an local educational agency
• Allows charters to bypass local control and allowing them to remain largely unaccountable to the public despite receiving a significant amount of taxpayer funding.

School Grade Manipulation

• Requires the educational data from a student that transfers to a private school or comes from a private school to be factored into a school’s grade, despite the fact that the school is not providing educational services to the student.

Teachers

• Removes teacher bonus caps for IB, AP, and CAPE without funding.
• Teacher Contracts: Contains a provision limiting the employment contracts that school districts may award to teachers to one year.
• Makes VAM teacher evaluation system optional for districts

Best & Brightest Teacher Bonus

• Reduces bonus for teenage SAT/ACT scores and highly effective rank from $10K to $6K for the next three years
• Adds a principal bonus of $4K, uses qualifications that have no proven correlation to teacher or principal performance.
• $1,200/year before taxes to “highly effective” teachers
• Up to $800/year before taxes to “effective” teachers
• Does not provide much-needed permanent teacher raises

Gardiner ESE Voucher

• Adds an additional $30 million to the existing program which offers $10K vouchers to parents of ESE students
• In exchange, parents give up child’s right to a free and appropriate public education (FAPE).
• Funding is generated by allowing corporations to divert what would be Florida general revenue taxes to Step up for Students, the designated “Scholarship Funding Organization” who earns a management fee off of the gross

Recess

• Mandates 100 minutes of recess per week for all K-5 students in District public schools
• Exempts charter schools from this mandate – granting a carve-out from any expenses incurred by the recess mandate

Kathleen Oropeza is co –founder of FundEducationNow.org, a non-partisan public education advocacy group working to bring voters into a thoughtful discussion about school reforms and the threat of privatization. She also writes The EdVocate Blog and is the mother of two public school children. Reach Kathleen at: Kathleen@fundeducationnow.org

Categories Accountability, Betsy DeVos, Bush, Jeb, Charter Schools, Corporate Reformers, Education Industry, Fraud, Funding, Privatization, Testing

Ohio: ECOT Uses Taxpayer $$ to Fight Accountability

By dianeravitch
June 25, 2017 //
24

The Electronic Classroom of Tomorrow (ECOT) has collected hundreds of millions of dollars from Ohio taxpayers to pay for online schooling st home. The owner of ECOT makes large campaign gifts to legislators. The “school” delivers low-level instruction and gets terrible results. High attrition, low test scores, and (according to the New York Times) the lowest high school graduation rate in the nation.

Incredibly, the Ohio Department of Education audited ECOT and found that its enrollment numbers are vastly inflated. The state ordered ECOT to refund $60 million.

ECOT went to court to challenge the state’s right to demand accountability. ECOT lost. ECOT announced layoffs.

Now ECOT is blitzing the state with TV ads to protest the state’s efforts to recover the$60 million in overcharges.

http://www.dispatch.com/news/20170624/ecot-continues-tax-funded-ad-blitz-despite-layoff-announcement

This is the definition of chutzpah.

Categories Accountability, For-Profit, Fraud, Technology, Virtual Charter Schools

Jeff Bryant: Why Is There Bipartisan Support for Charter Scams and Corruption?

By dianeravitch
June 25, 2017 //
38

Jeff Bryant points out an irony that should enrage every taxpayer and citizen: Both major political parties love charter schools, despite the numerous scandals that accompany unregulated, unaccountable charters.

http://educationopportunitynetwork.org/charter-schools-do-bad-stuff-because-they-can/

Here is a part of his great piece on the malfeasance that is now commonplace in the charter industry. There are many links:

“Charter schools have become a fetish of both Democratic and Republican political establishments, but local news reports continue to drip, drip a constant stream of stories of charter schools doing bad stuff that our tax dollars fund.

“An independent news outlet in New Orleans, where the school district is nearly 100 percent charter, reports that two homeless children were kept out of class for a month because they didn’t have monogrammed uniforms.
In Oakland, California, a state-based news outlet reports charter school enrollment practices ensure charter schools get an advantage over district schools when academic performance comparisons are made. The advantage comes from charters being able to enroll students who are more “academically prepared” than students who attend district-run schools.

“Oakland charters, when compared to public schools, also tend to enroll fewer students with special needs and fewer students who enter the school year late and are, thus, often academically behind.

“In Arizona, which has a higher percentage of students enrolled in charter schools than any other state, the demographic characteristics of charter school students don’t resemble anything close to what characterize public schools in the state. According to a state based news outlet, “enrollment data show the schools don’t match the school-age demographics of the state and, in many cases, their neighborhoods. White – and especially Asian – students attend charter schools at a higher rate than Hispanics, who now make up the greatest portion of Arizona’s school-age population.”

“In Florida, local newspapers tell of an operator of a chain of charter schools who is charged with racketeering in a scheme to use public education money from the charter operation for his own personal gain.

“The charter operator allegedly used more than $1 million for “personal expenses and to purchase residential and business properties.” The charges include falsely marking up bills for school supplies, inflating student enrollments in grant applications, spending public funds on companies affiliated with the owner, and using school money to pay for plastic surgery and cruises and trips to the Caribbean, Europe, and Asia.

“Next up, a Philadelphia news outlet reports a charter school, unable to pay employee and other expenses due to a dispute with the district over $370,578 in missed payments to the teacher pension system, simply closed shop over the weekend. It’s unclear how parents would have found out about the closure, and teachers weren’t told until late Monday afternoon, in an email, that students would not be returning.

“In Michigan, a charter school recently closed before the school year ended because of a dispute over $640,000 owed to the financial firm supporting the school. Even though the school is closing, it will still get state school aid payments through August.

“A news report from Arkansas tells of a charter school that has been in operation for nine years and has never met proficiency standards established by the state.

“And here’s a California charter school chain that “misappropriated public funds, including a tax-exempt bond totaling $67 million” and “failed to disclose numerous conflict-of-interest relationships.” The charter operator was able to divert $2.7 million of public charter school funds without any supporting documents. Eight different entities the charter operator was associated with benefited from doing business with the schools.

“Public schools are occasionally plagued with similar scandals, but there is an important distinction to be made from public school scandals and what happens in the charter school industry.

“As University of Connecticut professor Preston Green explains to me in an email, much of the malfeasance of charter schools comes from the entities that manage them. Called education management organizations (EMOs) or charter management organizations (CMOs), these outfits “create an agency issue with charter school governing boards that generally does not occur in traditional public schools,” Green explains.

“Public schools do not sign over operations to EMOS,” Green states. “By contrast, EMOs operate 35-40 percent of all charter schools.” And while nonprofit boards governing charters may want to ensure their schools are operating in a fiscally sound manner, the EMOs running the show “have the incentive to increase their revenues or cut expenses,” says Green.

“Those incentives can lead to numerous bad acts including engaging in conflicts of interest or cherry picking students.

“Where is the regulatory function that could intervene in these cases and ensure public tax money is being appropriately spent?

“In the case of the NOLA charter impeding the education of homeless students, a federal law requiring schools to accommodate homeless students was the basis for any grievances. But the state’s charter school regulations consider such treatment of students a breach of contract that warrants the school to only provide the students with the opportunity for make-up work or tutoring. In other words, the consequences are more of a burden for the student than they are for the school.

“In the case of the Oakland charters gaining an edge over public schools because of their enrollment practices, the report that outs the malfeasance notes that state “revenue policies” incentivize charter schools’ bad behavior.

“Charter school closings like we see occurring in Florida, Pennsylvania, and elsewhere are a feature of charter schools, not a bug. An analysis by the National Education Association finds that “among charter schools that opened in the year 2000, 5 percent closed within the first year, 21 percent closed within the first five years, and 33 percent closed within the first ten years.”

“Charter school scandals of the sort we see in Florida and California have become routine occurrences, yet a national organization that ranks state laws governing the charter industry rates Florida in the top ten of its annual assessment of states with the best charter school laws. And efforts to rein in the abuses committed by California charters have been routinely turned back by the state’s governor, Jerry Brown, who started two charter schools in Oakland.

“As for that Arkansas charter school that was able to stay in business despite poor performance, the school has “powerful friends,” according to the reporter. “The Walton Family Foundation, [the charity operated by the heirs of the Walmart fortune,] provided cash infusion to fix [the school’s] red-ink-bathed books. The money was passed through an opaque, unaccountable charter management corporation,” and lobbyists in the state legislature “put the cherry on this hot mess sundae” in support of the school.”

Categories Accountability, Charter Schools, Education Industry, Education Reform, Fraud, Privatization

SHOCKER! Massive Charter Scandal Stretches from Ohio to Florida

By dianeravitch
June 24, 2017 //
17

The Akron Beacon-Joirnal reports on a multi-state charter scandal.

“The founder of an Akron-area charter school company is accused of using thousands of dollars parents paid for student lunches and uniforms and millions more from Ohio and Florida taxpayers to fund home mortgages, plastic surgery, extensive world travel, credit card debt and more.

“Criminal charges filed last week in Florida against Marcus May also allege he improperly used private and public funds earmarked for students’ education to expand his charter school empire in Columbus, Akron, Cleveland and Dayton.

“Florida State Attorney William “Bill” Eddins brought the charges of racketeering and organized fraud against May, the founder of Newpoint Education Partners and Cambridge Education, a Fairlawn company that manages about 20 charter schools in Cincinnati, Dayton, Columbus, Akron, Youngstown, Canton and Cleveland.

“In a prepared statement provided to the Beacon Journal on Friday, Cambridge Executive Director John Stack said: “My co-owners and I asked for and today accepted Mr. May’s resignation as managing member of Cambridge. We are now in discussions to remove him completely from ownership in the company because we feel it’s in the best interest of our schools.

“Despite this distraction, my colleagues at Cambridge and I will continue to focus on our core mission and the students we serve as we have always done.”

“Cincinnati businessman Steven Kunkemoeller also was charged in the First Judiciary Circuit, a regional court in Florida. Kunkemoeller is a longtime business partner of May, according to a Beacon Journal/Ohio.com report from December and a multi-state investigation that included help from the Summit County Prosecutor’s Office.

“Kunkemoeller was arrested Wednesday in Florida. May’s attorney has reportedly talked with authorities there. Neither man could be reached for comment.

“The Florida prosecutor alleges that the men fabricated invoices, embellished enrollment, misappropriated public funds and created an elaborate network of limited liability companies in order to bilk the federal and state governments, as well as parents and students.

“In Akron, where Cambridge manages Towpath Trail High School, Middlebury Academy and Colonial Prep Academy, school board members are taking caution but not jumping to conclusions.

“We are keeping a close eye on it and discussing alternatives if they are needed,” said Ron McDaniel, president of Towpath Trail High School. “But we need to be responsible and not make snap decisions. Our schools are running well and run responsibly. We verify things better than the Florida schools did from what I understand.”

“The mark up

“School and business records obtained by the Beacon Journal and detailed by a forensic accountant working on the case show that May and Kunkemoeller marked up the price of services and supplies provided to the charter schools they managed in Ohio and Florida, sometimes more than doubling the cost of school uniforms, desks, computers, chairs and website design.

“Florida investigators questioned the vendors who sold the goods and could find “no apparent business reason” for the mark ups. May and Stack, Cambridge’s executive director, have said that the schools pay more upfront for more flexible financing terms.

“Fabricated invoices

“Items listed on invoices, from iPads to furniture, could not be found when Florida investigators swept schools for evidence of how public dollar were spent…

“Property and bank records reviewed by investigators showed May and his wife, Mary May, purchased a Florida home soon after “rebate” payments began. In 2014, two payments of $175,000 were applied to Kunkemoeller’s mortgage and the May’s home equity line of credit. Investigators traced the money to a laundry list of other non-public expenses, including $381,631 for credit cards, $207,415 for Marcus May and his family, $52,388 for a homeowner’s association fees (including swimming pool services), $4,735 taken as cash, personal loans to other people, a $10,000 jet ski from Barney’s Motorcycle Sales in St. Petersburg, $5,000 to the Fairlawn Country Club, $11,000 for plastic surgery and additional money for trips to Amsterdam, the British Virgin Islands, Brussels, Cancun, China, France, Hong Kong, Iceland, India, Japan, Los Cabos, the U.S. Virgin Islands and Italy.”

Florida officials are investigating; Ohio officials don’t seem to care.

The story goes on to detail massive fraud, double-billing, and other misappropriation of public money.

When will the mainstream media report this story? We know that Betsy DeVos won’t care. As long as parents are choosing these schools, why worry about the money?

Categories Charter Schools, Corporate Reformers, Education Industry, For-Profit, Fraud, Privatization

Florida: Charter Operator Charged with Theft, Fraud

By dianeravitch
June 21, 2017 //
13

When will the citizens of Florida say “Enough is enough”?

When will taxpayers stop subsidizing frauds who open charter schools?

The founder of a charter chain in Florida was charged with racketeering and fraud

The founder of a charter school company that managed two schools in Jacksonville was charged Monday, along with a business partner, with racketeering and organized fraud allegedly involving 15 charter schools in Florida.

“Prosecutors say Marcus May, owner of Newpoint Education Partners, is accused of misusing and co-mingling charter school money, as well as taking excessive payments and “kickback” fees, and spending the proceeds on such things as cruises, numerous trips to foreign countries, plastic surgery, home mortgages and a personal watercraft.

“May obtained more than $1 million of public funds from a pattern of thefts from the state department of education, six school districts and 15 Newpoint-managed charter schools,” said District 1 State Attorney Bill Eddins, in a prepared statement.

“In total, Newpoint’s charter schools in Florida received $57 million from the state and from six school districts, including Duval, between 2007 and 2016, the affidavit attached to the charges states.

“In Jacksonville, Newpoint ran the San Jose Academy and San Jose Preparatory High schools on Sunbeam Road. Both are now managed by a different company and serve 310 middle and high school students.”

Categories Charter Schools, Corporate Reformers, Education Industry, Florida, Fraud, Privatization

Maurice Cunningham: Dark Money Combines to Privatize Public Schools: PLEASE READ THIS!

By dianeravitch
June 21, 2017 //
20

This may be the most important post you read today.

Maurice Cunningham, a professor of political science at the University of Massachusetts, began investigating the millions of dollars pouring into the state during the referendum on charter schools last fall. He wondered why so many billionaires from other states wanted to expand the number of charter schools in Massachusetts. He continued his investigation after the election and has lifted the curtain on groups like Families for Excellent Schools, Stand for Children, and Educators4Excellence, and Leadership for Educational Excellence (a group connected to TFA).

He began researching the intersection between philanthropy and dark money.

My descent into darkness led me to decipher the hidden funding of Families for Excellent Schools, a New York based organization that poured over $17 million in dark money into the Great Schools Massachusetts ballot committee for 2016’s Question 2 on charter schools. That brought me to the initial funding to get FES up and running in Massachusetts, which came from a Boston based Internal Revenue Code 501(c)(3) charity called Strategic Grant Partners. The investments from SGP are consistent with the practice of wealthy individuals using charitable entities to influence the direction of public policy, a topic I explored in Unmasking the Philanthrocapitalists Who Almost Bought Massachusetts Schools. One way for wealthy individuals to grease the path to their public policy goals is to fund organizations that undermine teachers unions, a topic I took up in Philanthrocapitalists Brandish BEANball at BTU.

In the course of this research I have created a database of all Strategic Grant Partners’ publicly available grants since its inception, from its Form 990PF tax returns. The non-profit has dispensed many grants for family support and educational purposes over that time to about seventy grantees, only five of which I would characterize as engaging in political activities: advocacy/organizing/mobilizing for three of them, adding lobbying activities for two, Stand for Children and Families for Excellent Schools. There were no grants to political activities organizations until Stand for Children in 2009, and then no other such organization received a grant until 2013 when Education Reform Now and Families for Excellent Schools received funding.

He concludes:

The Stand for Children and Families for Excellent Schools initiatives both led toward the ballot box and thus we could look at OCFP reports; but these days the reports only tell us which dark money front is laundering for which elegantly named shell. That’s the tip of the iceberg. But there is much more.

Professor Cunningham, keep up the research. Check out Donors Trust, another group that bundles dark money for school privatization. Add ALEC and its donors.

Dark Money wants to destroy our public schools and our democracy.

The people behind these activities use “civil rights” rhetoric to advance anti-democratic goals. They are thieves of democracy.

Categories Accountability, Billionaires, Charter Schools, Corporate Reformers, Dark Money, Education Industry, Fraud, Privatization, Stand for Children

Pennsylvania: Haverford School Board Opposes Charter “Reform” Legislation

By dianeravitch
June 19, 2017 //
1

The Pennsylvania legislature is considering a bill to “reform” charter schools, but it still allows charters to drain resources from public schools without reimbursement, and it still preserves the low-performing cybercharters that milk resources from public schools with providing a decent education to any students.

Many grassroots groups oppose this bill, and the Haverford School Board just voted 7-1 against it.

The board of school directors recently joined Education Voters of Pennsylvania, the Philadelphia Federation of Teachers, Pennsylvania School Boards Association, Education Law Center and other school districts around the state that have voiced opposition to provisions for charter school reform in House Bill 97.

School directors voted 7-1 to adopt a resolution opposing the bill, which they allege “fails to establish meaningful change” from the state’s 20-year-old Charter School Law.

Approved by the state House in April, HB 97 is currently in the Senate Education Committee where amendments are under consideration, said school director and chair of the Delaware County School Boards Legislative Council Larry Feinberg, the resolution’s sponsor.

The resolution states that charter schools that are “publicly funded and privately operated institutions governed by non-elected boards …not accountable to taxpayers, yet paid for with local school district funds….”

Larry Feinberg said that while Haverford has no brick and mortar charter schools, the district has spent $2.4 million since 2012 on historically underperforming cybercharters, with $90.9 million spent county wide for “something that doesn’t work.”

And, “I have grave concerns about accountability,” Feinberg said, recalling Pennsylvania Cyber Charter founder Nick Trombetta’s diversion of funds to make lavish purchases for himself, his girlfriend and family members.

Categories Accountability, Charter Schools, For-Profit, Fraud, Funding, Pennsylvania, Resistance
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