Archives for category: Fraud

The confirmation hearings for Billionaire Betsy are scheduled to begin on January 11. It is assumed that she will breeze through because the DeVos family gives so much money to Republican politicians. That is usually enough to get a wealthy donor given an ambassadorship, but it is not typically the case for cabinet positions. Members of the president’s cabinet are expected to have some experience in the department and sector where they will take charge of federal policy. Billionaire Betsy has none. Her only involvement in education is as a lobbyist for private school choice. Since some 85% of children in the U.S. attend public schools, this means that she is totally out of touch with public education, for which she has repeatedly demonstrated hostility and contempt.

 

If she had her druthers, every child in America would attend a religious school, preferably evangelical Christian, to further her religious goals.

 

She and her husband tried and failed in 2000 to change the state constitution in Michigan, which forbids spending public money on religious schools. Voters turned down the revision overwhelmingly, by 69-31%.

 

So Billionaire Betsy and her husband went all in for charter schools, the next best route to privatization. They stood firmly against any regulation of charter schools, and the result–according to a year-long investigation by the Detroit Free Press in 2014–is a sector that is dominated by for-profit charters, that has low quality and poor performance, and that wastes $1 billion of taxpayers’ dollars every year. (I will explain in the next post why I am not including a link to the DFP series about the incompetence and corruption of the state’s charter sector.)

 

Here is one of dozens of stories of charter school corruption.

 

A husband and wife team (the Cancilliaris) started multiple charter schools; she was a teacher, he was a contractor. They were charged with self-dealing and conflicts of interest for steering millions of dollars to their private, for-profit companies. But the law is so weak on conflict of interest that almost anything goes. He was paid $200,000 as facilities director; she was paid $250,000 as program director, while also running an off-site textbook company that she and her husband founded.

 

 

In 2008 and again in 2012, Central Michigan raised questions about insider dealings, mostly involving the Cancilliaris; Mike Witucki, the former Flat Rock schools superintendent whose company, Helicon Associates, was brought in to manage the Summit schools; and the schools’ lawyers. At issue:

 

■ Companies founded by Witucki and Dino Cancilliari received millions of dollars in school funds for janitorial and tutoring services.

 

■ Emma Street Holdings, another company founded by the two men, provided loans and sold real estate to the schools.

 

■ Lawyers for the schools’ boards incorporated several of the Dino Cancilliari and Witucki companies, but CMU said they failed to disclose those relationships to the boards.

 

■ A company owned by Dino Cancilliari and his brother got construction contracts worth millions of dollars.

 

■ Helicon Associates paid Alison Cancilliari for consulting work, even as the two schools, with her at the helm, paid Helicon fees for managing the schools.

 

An expert on ethics says she sees ‘conflicts of interest at every turn

 

John Austin, president of the Michigan Board of Education, which makes education policy and advises lawmakers, said “self-dealing and personal enrichment of one’s self and family members in operating a public school would not stand the light of day at a local school board meeting.”

 

Diane Swanson, a professor of management at Kansas State University who specializes in ethics, said she sees “conflicts of interest at every turn.”

 

Swanson said dealings like those at Summit “make it look like the chartered schools are set up to funnel money into private hands. … I have serious concerns whether the primary stakeholders are really being served: the children, parents and the state itself.”

 

Two years ago, the National Association of Charter School Authorizers rated charter laws and said that Michigan has one of the worst charter school laws in the nation. 

 

Of particular note, the report said Michigan’s standards for renewing a charter are too low, the law doesn’t provide for automatic closure if a school is academically failing and doesn’t include minimum quality standards for authorizers. It also said the law doesn’t require authorizers to produce an annual report on the academic performance of its schools.

 

In brief, a public school with low test scores may be closed and turned over to a charter operator. A charter schools with low test scores will never be closed.

 

That’s Billionaire Betsy’s idea of the way education should run. Anyone who steps up is eligible to get a charter. For-profit companies run 80% of the schools. With no accountability, no transparency, no oversight, no conflict of interest laws.

 

Call your Senator. Call his or her office in Washington. Call her/his office in your state and/or district. Say NO to DeVos.

 

The Salt Lake City Tribune published an impassioned opinion piece by educators in opposition to billionaire Betsy DeVos.

 

Here is a part of the article:

 

Now is the time to contact your members of Congress to proclaim — unequivocally — that the hope for the future of our children is directly connected to support for public education. President-elect Donald Trump’s nomination of Betsy DeVos as the next secretary of education delivers a severe blow to the future of public education. While her statements indicate a desire to provide all parents the opportunity to choose the best schools for their children, a deeper look into her promotion of unregulated, for-profit charters and vouchers indicates a very different agenda.

 

From the Reagan administration through the Obama administration, a market-based agenda has spread an often-inaccurate narrative — leading Americans to believe that our public schools, teachers and students are failing miserably. This story was used to steamroll the country with privatization mandates while shifting billions of tax dollars to those who manufactured the narrative.
This is a fine article that echoes both research and common sense.

 

Stop Billionaire Betsy before she does to the nation what she has done to Detroit.

Frank Rich, a veteran political and cultural critic, makes a safe prediction: we are about to enter an era of corruption and influence peddling that will make Warren Harding’s Teapot Done scandal look like child’s play.

 

Rich writes:

 

“After the press revealed that a hastily assembled “Opening Day Foundation,” with Donald Jr. and Eric Trump on its board, was selling access to the president-elect and his family the day after his inauguration, for $500,000 to $1 million, the Trump family abruptly distanced itself.

 

“Simultaneously, Trump surrogate Newt Gingrich floated the idea of using the presidential pardon to help advisers get around conflict rules. What happens if Trump doesn’t work out a consistent conflicts-of-interest policy before his inauguration?
I hate to break it to anyone at this time of year, but (a) there is no Santa Claus, and (b) there will be no conflicts-of-interest policy in the Trump administration. What there will be are rampant conflicts of interest, more than you can count, as the Trump family and his appointees rip off anything they can — from taxpayers, from consumers, from shareholders — in a spree of deregulation, special dealing, lax white-collar-law enforcement, and corporate welfare. Just in the past day we’ve learned that the billionaire investor Carl Icahn will be Trump’s adviser on deregulation and do so under a legal dodge (he won’t collect a government salary) that will allow him to hold on to his own investments in the industries he’ll be enriching.

 

“Only hours before the Icahn announcement we had learned that Corey Lewandowski, Trump’s former campaign manager and ever-loyal wingman, was opening a “consulting” firm “just a block from the White House” (this was the language in the press release) to facilitate access to the White House for corporations, trade associations, and heaven knows what other favor seekers. As I’ve said before, the Trump kleptocracy is going to make the Harding administration’s pay-for-play Teapot Dome scandal look like a Sunday-school picnic.

 

“And so instead of draining the swamp, Trump is going to build a bigger and better swamp smack in the middle of the Rose Garden.

 
“Many have noted the hypocrisy: Trump promised to “drain the swamp” in Washington. Gingrich explained the seeming discrepancy in that same NPR interview in which he proposed that the new president evade ethics laws by granting mass pardons to any administration hands that get caught in the till. “I’m told he now just disclaims that,” Gingrich said of Trump’s current attitude toward his former catchphrase. “He now says it was cute, but he doesn’t want to use it anymore.” (Gingrich has since disowned his own phraseology in a subsequent tweet.) Instead of draining the swamp, Trump is going to build a bigger and better swamp smack in the middle of the Rose Garden — and, don’t worry, it will be fantastic. Meanwhile, it says all you need to know that Gingrich, the first Speaker of the House ever to be punished for ethics violations, is stepping into the vacuum to serve as moral arbiter of this new regime.”

 

 

 

 

The founder of a small charter chain in Michigan has been sentenced to 41 months in prison. 

 

I have written about Ingersoll here and here.

 

Steven Ingersoll founded the Grand Traverse Academy in Michigan.

 

Blogger Anita Senkowski has followed this scandal from its beginnings. She writes about Ingersoll’s sentencing here.

 

In its December 15, 2016 sentencing memorandum, the government stated:

 

In general, the four purposes of sentencing are retribution, deterrence, incapacitation, and rehabilitation. In a tax case such as this, the sentencing purposes of retribution and deterrence are especially important. A sentence within the guideline range of 41 to 51 months is necessary to accomplish those purposes.

 

“When looking first at the need for retribution, Ingersoll has committed a serious offense, and his sentence should reflect it. His offense was not a one-time lapse in judgement, or a record-keeping mistake with purely civil tax consequences. His criminal tax-loss amount exceeds a million dollars. And he was convicted of tax evasion and fraud with respect to three years of false income tax returns.

 

Ingersoll has done nothing to repay the money that he owes. To the contrary, he has continued to violate the tax laws to this day by failing to file any personal income tax return since 2012.

 

The profit and loss statement that Ingersoll previously filed with the court shows that from 2012 to 2015, he earned over two million dollars in gross income. The only income tax payment he has made for those tax periods, however, was a $10,000 payment submitted when he applied for an extension to file his 2012 return.

 

Defendant’s repeated and significant criminal conduct warrants a lengthy sentence.”

 

 

Here is a quote from an earlier post linked above:

 

“This is one of the most curious, most convoluted charter scandals I have come across. Of course, it happened in Michigan, where about 80% of charters operate for-profit and where the state exercises minimal oversight of the charter sector.

 

“In 1999, an optometrist named Steven Ingersoll was among the first to see the potential in the charter industry. He developed his own pedagogy called Integrated Visual Learning and opened the first of four charters, Grand Traverse Academy. The board of directors were other optometrists who liked Ingersoll’s ideas. Certainly, optometrists would be drawn to a teaching method based on “visual learning.”

 

“There were chummy relationships among Ingersoll, the management company he hired, and board members:

 

“It was not until lawyers for the school began asking questions that the tangled financial relationship between Ingersoll’s management company and the charter he founded began to unravel, culminating in the most significant federal criminal case in the history of Michigan’s 20-year-old charter school industry. Ingersoll, who started Smart Schools Management, Inc., stands accused of illegally diverting construction loan money for another charter school to his private account, in part to pay back money he had taken from the Grand Traverse charter. His hand-picked members on the school board knew he had advanced himself money from Grand Traverse, but had no problem with the arrangement, school records show.
“Ingersoll will go on trial next month on seven criminal charges of bank fraud and tax evasion. The allegations of financial self-dealing and cozy relations between Ingersoll, his associates and board members could not come at a worse time for the Michigan charter movement. The state’s powerful, mostly for-profit charter school industry has found itself on the defensive since the Detroit Free Press published a devastating series last June chronicling how charters receive nearly $1 billion a year in state taxpayer money with little accountability or transparency on how that money is spent. The series detailed how board members at some charter schools were forced out when they pushed to learn more about finances from management companies, and how state law failed to prevent self-enrichment by those operating some low-performing charter schools.”

 

“One blogger, Anita Senkowski, doggedly followed the case of Steven Ingersoll and posted documents. Her blog is called “Glistening Quivering Underbelly,” where she calls herself Miss Fortune. She described Ingersoll as the poster boy for Michigan’s lack of charter oversight.”

 

Ingersoll was convicted and has been sentenced to 41 months in prison.

 

 

From Public SchoolsFirst in NC:

 

“We are desperately trying to get 500 folks here at 430pm – we want to show strength before they close building at 5 pm – come for one hour – they will pass these laws but we can show our anger and we can bear witness- Please folks, I’m begging you, be a witness to this crime on Jones Street, be a witness to the right wing extremist taking over our North Carolina Constitution. Come witness a political coup underway to take away your voice and vote – if you can’t come then be relentless in your phone calling, your emailing, and your tweeting. Don’t stop, don’t get weary, and don’t give up, but a thorn in the side of bigotry. Please share –
WHY YOU ARE NEEDED to show up at 4:30 pm TODAY (and keep showing up and keep emailing and calling when you hear about their final votes!)

Folks we are in the midst of a political coup by the right wing conservative extremists. These are not patriots but powering grabbing white Republicans – they held a Jim Crow caucus consisting of white men (and a few token white women) to draft these bills against the will of the people in secrecy and with intent to take power from the people.
The GOP controlled General Assembly led by Senator Berger and Representative Moore, are using every dirty trick in the book to preserve their privileges since NC voters elected a democrat as their new governor.
In other words, the political elites – mostly Phil Berger, Art Pope, Thom Tillis, Richard Burris and Tim Moore are preserving their grip on power in any way they can, legally (even if undemocratic) and illegally (even if it costs our tax payers) – they are trying to sell this as normal, political business as usual but it is really an ‘overthrow’ of our democracy and our constitution and actually is only intended to preserve authority in the hands of the few.NC General Assembly has gone too far. They came to Raleigh under the pretense of protecting NC hurricane and forest fire victims but have now filed over 20 bills, including unprecedented laws that strip Governor-elect Roy Cooper of executive powers, hurt public education, create gridlock in the state and county boards of elections and circumvent the will of the people, and do further harm to the people of our state. Extremists in the legislature are upset about the outcome of our election and are trying to maintain their control.
HB 17 goes to extraordinary lengths to take away all powers of our Governor-elect, slashing the number exempt positions he can oversee from 1,500 to 300, and eliminating his ability to make appointments to university campus boards of trustees.
Additionally, the bill radically reorganizes governance of North Carolina’s public schools. In almost every possible way, the bill strips power from the State Board of Education to provide more authority to the newly-elected Republican Superintendent of Public Instruction. If the bill becomes law, it will certainly be challenged in court due to constitutional issues. The bill – which was unveiled under a cloud of secrecy last night – is quickly moving through the General Assembly without adequate public input or transparency.
The North Carolina State Constitution clearly gives the State Board of Education the responsibility for running our public school system. The State Board, which consists of 11 members appointed to eight-year terms by the Governor, would be stripped of its powers under HB 17. The new law would unconstitutionally place these powers with the newly-elected Superintendent of Public Schools, Mark Johnson, a lawyer with no experience running a state agency.
HERE IS A PARTIAL LIST:
House Bill 17 makes 1,200 of Pat McCrory’s political appointments permanent state employees, grants the NC Senate unprecedented approval over Governor-elect Cooper’s cabinet picks, and also removes Governor-elect Cooper’s power to appoint trustees to the UNC board and the state board of education.
House Bill 6 needlessly changes the Department of Information Technology from part of the Governor’s cabinet to an “independent” agency whose leadership would be chosen by the Republican Lieutenant Governor.
Senate Bill 4 allows McCrory to appoint the chair of the industrial commission before he leaves office and would drastically change the board of elections by giving the General Assembly the authority to choose half of its members and giving Republicans almost-guaranteed chairpersonship of the board for the foreseeable future.
Senate Bills 5 and 6 grant McCrory the power to appoint two last-second Special Superior Court judges. One of the appointees would be McCrory’s budget director, Andrew Heath, who has limited legal experience.

 

The people of North Carolina will not take these actions against our constitution, our democracy and our vote!. We demand that they respect our vote, end this Session and stop attacking our democracy.
Please join our People’s Assembly at 4:30 pm today at the NC General Assembly in the rotunda.”

There are some things you read that you can never forget. Among my favorites: George Orwell’s essay on “Politics and the English Language.” For another, George Orwell’s essay “Looking Back on the Spanish Civil War.”

 

I think what he wrote in that essay casts a fresh light on what appears to be the new phenomenon of Fake News. It comes to us via the Internet, which did not exist when Orwell wrote this essay. It comes in the same typography as the news that has been carefully fact-checked. It seeks to discredit the mainstream media. It seeks to discredit the views of everyone because of their suspected motives. I am not suggesting that we should be credulous of everything we read. To the contrary. I am not suggesting that we should abandon critical thinking. To the contrary. I am suggesting that we weigh carefully which sources are credible, which can be trusted, and be wary of attempts to discredit them.

 

In section 4, he writes about how totalitarians war on the very concept of objective truth. They undermine public confidence in everyone but the Maximum Leader. Don’t believe what you read or see or hear. Only believe the Party line and the Leader.

 

Orwell wrote this:

 

I remember saying once to Arthur Koestler, ‘History stopped in 1936’, at which he nodded in immediate understanding. We were both thinking of totalitarianism in general, but more particularly of the Spanish civil war. Early in life I have noticed that no event is ever correctly reported in a newspaper, but in Spain, for the first time, I saw newspaper reports which did not bear any relation to the facts, not even the relationship which is implied in an ordinary lie. I saw great battles reported where there had been no fighting, and complete silence where hundreds of men had been killed. I saw troops who had fought bravely denounced as cowards and traitors, and others who had never seen a shot fired hailed as the heroes of imaginary victories; and I saw newspapers in London retailing these lies and eager intellectuals building emotional superstructures over events that had never happened. I saw, in fact, history being written not in terms of what happened but of what ought to have happened according to various ‘party lines’. Yet in a way, horrible as all this was, it was unimportant. It concerned secondary issues — namely, the struggle for power between the Comintern and the Spanish left-wing parties, and the efforts of the Russian Government to prevent revolution in Spain. But the broad picture of the war which the Spanish Government presented to the world was not untruthful. The main issues were what it said they were. But as for the Fascists and their backers, how could they come even as near to the truth as that? How could they possibly mention their real aims? Their version of the war was pure fantasy, and in the circumstances it could not have been otherwise.
The only propaganda line open to the Nazis and Fascists was to represent themselves as Christian patriots saving Spain from a Russian dictatorship. This involved pretending that life in Government Spain was just one long massacre (vide the Catholic Herald or the Daily Mail — but these were child’s play compared with the Continental Fascist press), and it involved immensely exaggerating the scale of Russian intervention. Out of the huge pyramid of lies which the Catholic and reactionary press all over the world built up, let me take just one point — the presence in Spain of a Russian army. Devout Franco partisans all believed in this; estimates of its strength went as high as half a million. Now, there was no Russian army in Spain. There may have been a handful of airmen and other technicians, a few hundred at the most, but an army there was not. Some thousands of foreigners who fought in Spain, not to mention millions of Spaniards, were witnesses of this. Well, their testimony made no impression at all upon the Franco propagandists, not one of whom had set foot in Government Spain. Simultaneously these people refused utterly to admit the fact of German or Italian intervention at the same time as the Germany and Italian press were openly boasting about the exploits of their’ legionaries’. I have chosen to mention only one point, but in fact the whole of Fascist propaganda about the war was on this level.
This kind of thing is frightening to me, because it often gives me the feeling that the very concept of objective truth is fading out of the world. After all, the chances are that those lies, or at any rate similar lies, will pass into history. How will the history of the Spanish war be written? If Franco remains in power his nominees will write the history books, and (to stick to my chosen point) that Russian army which never existed will become historical fact, and schoolchildren will learn about it generations hence. But suppose Fascism is finally defeated and some kind of democratic government restored in Spain in the fairly near future; even then, how is the history of the war to be written? What kind of records will Franco have left behind him? Suppose even that the records kept on the Government side are recoverable — even so, how is a true history of the war to be written? For, as I have pointed out already, the Government, also dealt extensively in lies. From the anti-Fascist angle one could write a broadly truthful history of the war, but it would be a partisan history, unreliable on every minor point. Yet, after all, some kind of history will be written, and after those who actually remember the war are dead, it will be universally accepted. So for all practical purposes the lie will have become truth.
I know it is the fashion to say that most of recorded history is lies anyway. I am willing to believe that history is for the most part inaccurate and biased, but what is peculiar to our own age is the abandonment of the idea that history could be truthfully written. In the past people deliberately lied, or they unconsciously coloured what they wrote, or they struggled after the truth, well knowing that they must make many mistakes; but in each case they believed that ‘facts’ existed and were more or less discoverable. And in practice there was always a considerable body of fact which would have been agreed to by almost everyone. If you look up the history of the last war in, for instance, the Encyclopaedia Britannica, you will find that a respectable amount of the material is drawn from German sources. A British and a German historian would disagree deeply on many things, even on fundamentals, but there would still be that body of, as it were, neutral fact on which neither would seriously challenge the other. It is just this common basis of agreement, with its implication that human beings are all one species of animal, that totalitarianism destroys. Nazi theory indeed specifically denies that such a thing as ‘the truth’ exists. There is, for instance, no such thing as ‘Science’. There is only ‘German Science’, ‘Jewish Science’, etc. The implied objective of this line of thought is a nightmare world in which the Leader, or some ruling clique, controls not only the future but the past. If the Leader says of such and such an event, ‘It never happened’ — well, it never happened. If he says that two and two are five — well, two and two are five. This prospect frightens me much more than bombs — and after our experiences of the last few years that is not a frivolous statement.

 
But is it perhaps childish or morbid to terrify oneself with visions of a totalitarian future? Before writing off the totalitarian world as a nightmare that can’t come true, just remember that in 1925 the world of today would have seemed a nightmare that couldn’t come true. Against that shifting phantasmagoric world in which black may be white tomorrow and yesterday’s weather can be changed by decree, there are in reality only two safeguards. One is that however much you deny the truth, the truth goes on existing, as it were, behind your back, and you consequently can’t violate it in ways that impair military efficiency. The other is that so long as some parts of the earth remain unconquered, the liberal tradition can be kept alive. Let Fascism, or possibly even a combination of several Fascisms, conquer the whole world, and those two conditions no longer exist. We in England underrate the danger of this kind of thing, because our traditions and our past security have given us a sentimental belief that it all comes right in the end and the thing you most fear never really happens. Nourished for hundreds of years on a literature in which Right invariably triumphs in the last chapter, we believe half-instinctively that evil always defeats itself in the long run. Pacifism, for instance, is founded largely on this belief. Don’t resist evil, and it will somehow destroy itself. But why should it? What evidence is there that it does? And what instance is there of a modern industrialized state collapsing unless conquered from the outside by military force?

 
Consider for instance the re-institution of slavery. Who could have imagined twenty years ago that slavery would return to Europe? Well, slavery has been restored under our noses. The forced-labour camps all over Europe and North Africa where Poles, Russians, Jews and political prisoners of every race toil at road-making or swamp-draining for their bare rations, are simple chattle slavery. The most one can say is that the buying and selling of slaves by individuals is not yet permitted. In other ways — the breaking-up of families, for instance — the conditions are probably worse than they were on the American cotton plantations. There is no reason for thinking that this state of affairs will change while any totalitarian domination endures. We don’t grasp its full implications, because in our mystical way we feel that a regime founded on slavery must collapse. But it is worth comparing the duration of the slave empires of antiquity with that of any modern state. Civilizations founded on slavery have lasted for such periods as four thousand years.

 
When I think of antiquity, the detail that frightens me is that those hundreds of millions of slaves on whose backs civilization rested generation after generation have left behind them no record whatever. We do not even know their names. In the whole of Greek and Roman history, how many slaves’ names are known to you? I can think of two, or possibly three. One is Spartacus and the other is Epictetus. Also, in the Roman room at the British Museum there is a glass jar with the maker’s name inscribed on the bottom, ‘Felix fecit’. I have a mental picture of poor Felix (a Gaul with red hair and a metal collar round his neck), but in fact he may not have been a slave; so there are only two slaves whose names I definitely know, and probably few people can remember more. The rest have gone down into utter silence.

Paul Krugman, the Nobel Prize winning columnist for the New York Times, predicts an unprecedented level of corruption during the Trump years, related to Trump’s refusal to separate himself from his business empire. Will foreign diplomats reserve the $20,000 a night suite at the Trump hotel in D.C. to impress the President? Will governments grant permits expeditiously to build new Trump hotels, casinos and golf courses to curry favor? Will the President appoint members of the National Labor Relations Board to prevent his hotels from being unionized (there is a labor dispute at a Trump hotel in Las Vegas before the NLRB right now).

He writes,

Self-dealing will be the norm throughout this administration. America has just entered an era of unprecedented corruption at the top.

The question you need to ask is why this matters. Hint: It’s not the money, it’s the incentives.

True, we could be talking about a lot of money — think billions, not millions, to Mr. Trump alone (which is why his promise not to take his salary is a sick joke). But America is a very rich country, whose government spends more than $4 trillion a year, so even large-scale looting amounts to rounding error. What’s important is not the money that sticks to the fingers of the inner circle, but what they do to get that money, and the bad policy that results.

Normally, policy reflects some combination of practicality — what works? — and ideology — what fits my preconceptions? And our usual complaint is that ideology all too often overrules the evidence.

But now we’re going to see a third factor powerfully at work: What policies can officials, very much including the man at the top, personally monetize? And the effect will be disastrous.

Let’s start relatively small, with the choice of Betsy DeVos as education secretary. Ms. DeVos has some obvious affinities with Mr. Trump: Her husband is an heir to the fortune created by Amway, a company that has been accused of being a fraudulent scheme and, in 2011, paid $150 million to settle a class-action suit. But what’s really striking is her signature issue, school vouchers, in which parents are given money rather than having their children receive a public education.

At this point there’s a lot of evidence on how well school vouchers actually work, and it’s basically damning. For example, Louisiana’s extensive voucher plan unambiguously reduced student achievement. But voucher advocates won’t take no for an answer. Part of this is ideology, but it’s also true that vouchers might eventually find their way to for-profit educational institutions.

And the track record of for-profit education is truly terrible; the Obama administration has been cracking down on the scams that infest the industry. But things will be different now: For-profit education stocks soared after the election. Two, three, many Trump Universities!

Moving on, I’ve already written about the Trump infrastructure plan, which for no obvious reason involves widespread privatization of public assets. No obvious reason, that is, except the huge opportunities for cronyism and profiteering that would be opened up.

Krugman previously wrote that Trump’s proposal to rebuild the nation’s infrastructure would privatize many of our public assets and become a goldmine for the private sector.

Buckle your seat belts. The next four years will make Teapot Dome look like a tea party.

An investment group in Portland, Oregon, paid $72 million for five charter schools in Florida. The investors paid nearly $18,000 per student.

Do you think these are public schools? Do you think they are community schools?

http://therealdeal.com/miami/2016/11/21/schools-out-portland-investors-pay-72m-for-charter-school-portfolio-in-florida/

Charter School Capital, an academic investment group based in Portland, just scooped up five charter schools spread throughout Florida for $71.74 million. The sellers were MG3 Development Group and ESJ Capital Partners, a pair of local real estate companies.
The deal illustrates how investing in nontraditional real estate like schools can be lucrative, especially when other markets like residential and commercial properties appear to be cooling down.

According to a news release from Colliers International Education Services Group, which brokered the deal on behalf of the sellers, the portfolio encompasses 295,992 square feet split among five schools in Riverview, Vero Beach, Coral Springs, Davie and Plantation. Colliers’ Todd Noel and Achikam Yogev worked on the sale.

MG3 Principal Hernan Leonoff told The Real Deal that his firm developed the schools in Riverview, Davie and Plantation, plus renovated the facility in Coral Springs while ESJ acted as the lead company in building the portfolio. MG3 had no involvement with the Vero Beach charter school.

The ownership varied between properties: for most of the schools, MG3 had a minority interest while ESJ, led by principals Arnaud Sitbon and Gabriel Amiel, was the majority owner.

The sale breaks down to about $242 square feet, but Leonoff cautioned that a school’s capacity for students is a better gauge of pricing because common areas can skew square footage.

The five schools can house roughly 4,000 students, he said, bringing the price to about $17,935 per enrollee. That’s significantly more expensive than the $16,641 per student that tennis pro Andre Agassi and his partner Bobby Turner sold their Boynton Beach school for in August.

This is unbelievable!

 

The California Charter School Association pretends to be fighting for the civil rights of children by pushing school choice and undermining public schools.

 

Yet it wrote a note congratulating the Billionaire Queen of Vouchers, Betsy DeVos, on her nomination to be Secretary of Education:

 

The California Charter Schools Association congratulates Betsy DeVos, a longtime supporter of charter schools, on her appointment as Secretary of Education. Mrs. DeVos has long demonstrated a commitment to providing families with improved public school options and we look forward to working with the administration on proposals allowing all students in California to access their right to a high quality public education.

 

Let’s be clear. DeVos is first and foremost a supporter of vouchers. When vouchers are not available, because voters don’t approve them (as in her home state of Michigan), she supports charters. She doesn’t necessarily support “high-quality charters,” she supports low-quality charters, no-quality charters, and for-profit charters. Last spring, she and her husband spent nearly $1.5 million in campaign contributions to block legislative efforts to make charter schools accountable. Detroit is her petri dish; it is the lowest-performing urban district in the nation on NAEP measures. In addition, she and her family have also devoted large sums to anti-gay legislative campaigns.

 

How hypocritical can CCSA be?

 

Amway made the DeVos family billionaires.

 

G.F. Brandenburg says that it is an illegal pyramid scheme.

 

“It’s surprising how quiet the media have been about how corrupt Amway is, the company which made Betsy DeVos rich enough to have sufficient clout to be able to ruin public education?

 

“Did you know that they had to pay $150 million just a few years ago? I had no idea. Going by what I wrote previously about Multi-Level Marketing (the polite name for modern pyramid schemes), the FTC and other regulatory groups treat Amway and their peers with kid gloves not because it’s not a fraud and a con, but because a lot of Senators and Representatives in both parties are beneficiaries of these Ponzi schemes. So whenever an agency tries to stop this Ponzi mess, there is immediate pushback from another branch of government.”

 

Read on to see how it works.