Archives for category: Fraud

Kamala Harris, the state attorney general and candidate for the U.S. Senate, has called for the U.S. Department of Education to strip recognition from the accrediting agency that approved Corinthian Colleges, the now defunct for-profit university that defrauded many thousands of students.

Harris has written the U.S. Department of Education, urging it to revoke federal recognition of the Accrediting Council for Independent Colleges and Schools (ACICS), which among its other accomplishments accedited the now-defunct Corinthian Colleges, Inc., which left tens of thousands of students with useless degrees and millions of dollars in debts.

“The predatory scheme devised by executives at Corinthian Colleges, Inc. was unconscionable. And despite enforcement actions by the California Department of Justice and the federal government against Corinthian, ACICS continued to accredit Corinthian, hurting thousands of students in the process,” Harris said. “Students relied on Corinthian’s accreditation status, believing they were obtaining a high quality-education with real job prospects.”

ACICS boasts of accrediting more colleges than any other agency but a quick perusal of its roster finds that most of them are small vocational training institutions, offering certificates and associate degrees in such fields as dental assistance and office management.

Harris joins 13 other state AGs who are opposing the renewal of ACICS as an accreditation agency. Harris and 10 other AGs are also calling for tougher standards for college recruiters on military bases.

Mercedes Schneider dug into the background of Chris Clemons, the Atlanta charter school principal, who has been accused of stealing $600,000 from his school.

She found an article from his days at MIT, explaining how he developed a passion for teaching “impoverished children in urban areas.”

He trained as a school leader at “Building Excellent Schools,” a Boston-based program to prepare principals to open and run charter schools. He launched a charter school in Denver, his hometown. And then he went to Atlanta to open charter schools. He was charged by the FBI with theft, not only for the missing $600,000 from his current school, but for another $350,000 that was missing from two other charter schools that he ran.

Molly Bloom of the Atlanta Journal-Constitution writes here about the biggest theft in the brief history of charter schools in Georgia. That state is in the process of expanding the number of charters and is considering creating an “Achievement School District,” modeled on the failed ASD in Tennessee, in which low performing schools are turned over to charter operators.

Here is the story of Atlanta’s Latin Academy Charter School.

A $12,000 charge at a strip club. Thousands of dollars spent at Mercedes-Benz of Buckhead. ATM withdrawals of hundreds of dollars at a time.

The charges to Atlanta’s Latin Academy Charter School should have raised eyebrows. For the top state education officials and corporate executives on the school’s board, they should have set off earsplitting sirens.

Instead, the charges continued for years, siphoning more than $600,000 in taxpayer dollars that should have been spent on students.

Christopher Clemons, the school’s founder, has been charged with fraud and theft in the largest such case in Georgia charter school history.

Clemons left Atlanta after the losses were discovered.

He left a rented townhome strewn with Hermes boxes, lease paperwork for a new BMW, used boarding passes and a Rolex receipt.

He left the school so financially troubled that board members closed it.

He left nearly 200 children with few options.

And he left a cautionary tale for Georgia’s growing charter school movement. Latin Academy, with its all-star board and experienced leader, seemed on track to thrive. But behind that facade of apparent success, the school spent millions of tax dollars with little public scrutiny and operated with a lack of public input foreign to many traditional public schools.

Latin Academy’s academic performance ranked in the top 25 percent of all Atlanta middle schools in an area where neighborhood middle schools are better known for hallway chaos than academics.

Clemons is presently in jail in Colorado, awaiting extradition to Georgia.

In the last decade, the number of students in charter schools has tripled to 91,000, with more growth expected. In addition, the legislature allows entire districts to have “charter-like” freedoms, which means deregulation and freedom from oversight.

Expect more scandals, fraud, corruption, and theft. If men were angels, there would be no reason for oversight or regulations.

Could someone explain why deregulation is supposed to create better education?

A new study based on publicly available data on the state’s website finds that the state has wasted millions of federal dollars designated for charter schools. Of the state’s federally funded charter schools, 37% either never opened or were among the state’s lowest performing schools. Only recently, the U.S. Department of Education decided to award another $71 million to expand the charter industry in Ohio, but the new funding has been delayed because of outrage over scandals in the state’s charters. The study was conducted by the Ohio Charter School Accountability Project.

 

 
New Study Shows Millions Intended for High-Performing Charter Schools
Went to Some of Ohio’s Worst – and Others That Never Even Opened

 

 

For Immediate Release: May 26, 2106

 

 

COLUMBUS – The federal government has sent more money to Ohio to expand “high-performing” charter schools than all but two other states, but Ohio spent millions on some of the lowest-performing schools. And nearly $4 million went to schools that never opened, according to a new analysis.

 

 

The Ohio Charter School Accountability Project did the analysis to determine how a state with so many of America’s worst-performing charter schools could be in line for so much federal money intended to help the best ones.

 

 

Ohio ranks third nationally in total money received during the program’s 21-year history. During that time, the U.S. Department of Education did just one assessment of the grants’ success in Ohio. Although it raised serious questions about the Ohio Department of Education’s ability to properly distribute the money, nothing appears to have changed as a result.

 

 

“As Ohio takes steps to make charter school sponsors more accountable under the reform law passed last year, it’s important that policy makers understand the past,” said OEA President Becky Higgins. “Together with our colleagues at Innovation Ohio and ProgressOhio, we examined how these Charter School Program (CSP) grants have been awarded, and tried to identify the shortfalls along the way. Ohio cannot afford to waste money on failing charter schools. It needs to invest in the good ones.’’

 

 

The new analysis, Belly Up: A Review of Federal Charter School Grants, shows how state and federal education departments ignored warning signs, systemically wasted tax dollars and made learning more difficult for many Ohio students.

 

 

Among the main findings:

 

 

· Of the 292 Ohio charter schools that have received federal CSP funding since 2006, 108 (37 percent) have closed or never opened, totaling nearly $30 million. Meanwhile, barely 2 percent of all companies nationwide that have received any federal grants or incentives since 2000 have failed.

 

 

· The Ohio tally includes 26 charter schools that received nearly $4 million in CSP funding but never opened. There are no records to indicate whether any of these public funds was returned.

 

 

· Ohio charters that received past CSP funding and State Report Card grades in the 2014-2015 school year had a median Performance Index score that was lower than all but 15 of Ohio’s 613 school districts.

 

 

· Since the federal grant program began 21 years ago, its lone assessment – conducted by WestEd – identified material weaknesses that appear to have been ignored by federal grant makers. In one instance, a potential grant reviewer even told the Ohio Department of Education that she was unqualified for the job and asked to be excluded from its reviewers’ list. Instead, the department thanked her for “agreeing to participate as a community school grant reader.”

 

 

· Paolo DeMaria, recently appointed Ohio Superintendent of Public Instruction, was Associate Superintendent of Finance and School Options at the time WestEd raised concerns about Ohio’s processes for distributing the federal money to charter schools.

 

 

Of the 44 Ohio charter schools where State Auditor David Yost conducted surprise attendance audits recently, 17 had received federal CSP funding. One of them – the London Academy – only had 10 of the 270 students ODE thought it had in attendance the day Yost’s investigators showed up. All told, these audited schools received about $6.6 million in federal funding.
Last September, federal officials stunned education experts by announcing that Ohio would receive $71 million in CSP grants – more than any other state. Ohio’s large award came in spite of its reputation as one the worst charter states in the country, according to national charter advocates. The swift and severe criticism that followed prompted USDOE to put Ohio’s award on hold.

 

 

“We urge federal regulators to revamp the way in which it makes grants so that the money goes to the best performing charter schools,” said Innovation Ohio President Keary McCarthy. “The mistakes of the past should not be repeated in the awarding of future grants.”

 

 

Those mistakes include giving millions to the state’s most notorious charter school scofflaws, including:

 

 

· Horizon Science Academies and Noble Academies: Total CSP Grants: 7.6 million

 

 

Linked to a Muslim cleric exiled in Pennsylvania, the chain is the subject of an ongoing FBI investigation, and WikiLeaks revealed cables showing the U.S. State Department notified the CIA about suspicious visas for teachers and administrators. In June 2014, 19 of its schools were raided by the FBI, including four in Ohio. The Ohio schools also have been dogged by allegations of test-tampering, teachers using racial slurs in the classroom, unqualified teachers, sexual misconduct in the classroom. ODE investigated allegations raised by teachers who witnessed the problems but found no wrongdoing.

 

 

· Imagine Schools: Total CSP Grants: $5.9 million

 

 

The chain has been under fire nationally for saddling schools with exorbitant leases paid to its subsidiary, SchoolHouse Finance. Imagine recently lost lawsuits in Indiana and Missouri over the same type of abusive leases seen in Ohio. A federal judge in Missouri ordered Imagine to pay $1 million and called the lease arrangement “self-dealing.’’ One of the chain’s worst-performing Ohio schools, Romig Road in Akron, is among the charters that closed – but received federal grant money. All of Imagine’s Ohio schools received a D or F on the most recent state report cards.

 

 

· White Hat Management: Total CSP Grants: $1.4 million
Owner David Brennan has been the most powerful and influential of Ohio’s charter school operators since state money started flowing to them. Brennan’s schools also are routinely among the lowest performing. While Ohio’s historically lax regulations make it difficult to close even the worst schools, several of Brennan’s schools have been shut down for academic reasons or contractual non-compliance. Staffers for GOP state Auditor David Yost made surprise visits to charters to see if they are padding attendance records and concluded that White Hat’s dropout recovery schools were among the worst.

 

 

It’s been well documented that ODE’s grant application for the $71 million was inaccurate and misleading, prompting state officials to revise the number of poor-performing charter schools in Ohio from six on its initial application to 57 – a tenfold increase. The author of the application, David Hansen, was forced to resign as head of ODE’s office of school choice and community schools after getting caught illegally cooking the state’s accountability system to benefit Ohio’s politically connected eSchool operators.

 

 

It is unclear when or if federal regulators will release the $71 million.

 

 

The Ohio Charter School Accountability Project is a joint venture of the Ohio Education Association, Innovation Ohio and ProgressOhio. OEA and IO host the website, knowyourcharter.com, which provides data from the Ohio Department of Education on how the state’s charter schools are faring compared to local public schools.

 

 

For More Information, contact:

 

 

Stephen Dyer, Innovation Ohio Education Fellow, 330-338-1486
Keary McCarthy, Innovation Ohio President, 614-425-9163

I posted recently about the indictment in Florida of leaders of an Ohio-based charter management company.

 

This reader reacted:

 

 

“As a previous employee of Newpoint, I hope North Carolina school district opens their eyes and stops allowing NEP to open schools there. Look what has happened in Florida. In Pensacola the Director of Newpoint Academy and Newpoint Pensacola High School Mr. John Graham told us our bank account was swiped clean at the end of every month which left us with nothing to work with financially. We had terrible internet service for our technology based middle school and high school. This left our high school students unable to do class work since their whole curriculum was on line. We had no money, a dirty school, high teacher turnover, and were fed stories of how things were going to get better for four long years. From reading the newspapers from south Florida, this story of no money, high teacher turnover… repeated itself in their counties where Newpoint had schools.

 

 

 

“Now we find out, NEP is charged with grand theft, money laundering, and white collar crime in our county. NEP should have to pay Escambia County that money back. Why does the owner get away with such theft ? If you steal a blouse from a store, you get arrested and thrown in jail for it, but if you steal hundreds of thousands of dollars of tax payers Federal funds, you pay a fine and get away with it? All of these counties should tie that owner up in court with law suits for the next ten years!”

Motoko Rich writes in the New York Times about the terrible results obtained by online charter schools. She focuses on the Electronic Classroom of Tomorrow, whose founder has become very wealthy thanks to taxpayer money and the friendship of reformers such as Governor JohnKasich and the GOP legislators in Ohio. Founder William Lager has been very generous to his friends who hold elected office.

 

A terrific business. A lousy education.

 

Five years ago, the New York Times ran a superb expose of online charters, pointing out that they are very profitable but basically scams that rip off taxpayers.

 

In 2011, the Washington Post published an excellent expose of Michael Milken’s K12 Inc, which is listed on the New York Stock Exchange.

 

 

For-profit virtual charter corporations are a cynical business that exploits children and does not have educate them. It demands full state tuition to provide home schooling plus a “teacher” on a monitor.

 

I wrote about the online charter fraud in my 2013 book “Reign of Error.”

 

Numerous studies have concluded that these schools have startlingly high attrition rates, large “class” sizes, low wages, high teacher turnover, and their students very little.

 

The latest study, by CREDO, found that students lost 180 days of instruction in math for every year of 180 days in a virtual charter.

 

Bill Phillis of the Ohio Coalition for Equity and Adequacy wrote about today’s article in the Times and pointed out that ECOT has received nearly $1 billion in public funding since 2002.

 

Frankly, these fake schools should be investigated by authorities, monitored, and limited to students who are unable to attend school. They should exist only as public institutions, not profit-making corporations.

Paul Krugman puts the matter directly: Donald Trump is an ignoramus. His ignorance is hopeless because he doesn’t know what he doesn’t know. He likes to tell people that he is smart. Anyone who says that he is smart is insecure, not smart. His ignorance is dangerous to the economy and to our national security. When he was asked in an interview who influences him on foreign policy and defense, he said he watches television. That’s scary.

 

Krugman writes:

 

“Truly, Donald Trump knows nothing. He is more ignorant about policy than you can possibly imagine, even when you take into account the fact that he is more ignorant than you can possibly imagine. But his ignorance isn’t as unique as it may seem: In many ways, he’s just doing a clumsy job of channeling nonsense widely popular in his party, and to some extent in the chattering classes more generally.
“Last week the presumptive Republican presidential nominee — hard to believe, but there it is — finally revealed his plan to make America great again. Basically, it involves running the country like a failing casino: he could, he asserted, “make a deal” with creditors that would reduce the debt burden if his outlandish promises of economic growth don’t work out.
“The reaction from everyone who knows anything about finance or economics was a mix of amazed horror and horrified amazement. One does not casually suggest throwing away America’s carefully cultivated reputation as the world’s most scrupulous debtor — a reputation that dates all the way back to Alexander Hamilton.”

 

Let’s bring the discussion to education. Trump has said very little about education. I watched the debates and some of his many speeches. This is all I heard. He says he will get rid of the Common Core, but the fact is that there is not much the federal government can do to roll it back. It is out there, propped up by the SAT, the ACT, Pearson, and Gates. He says he loves charters. He says he believes in local control.

 

I don’t believe he knows what Common Core is. I don’t believe he knows what charters are. I don’t think anyone has explained to him what public education is. I don’t think he has said anything about higher education or how to relieve the crushing student debt. I don’t think he has spent ten minutes thinking about education. Nothing he has said would lead you to think he is informed about the issues that concern readers of this blog or me.

 

Most of what he says seems to be off the cuff, drawn from his personal experience or observations. I don’t believe he knows anyone who went to public school or anyone who had to borrow to pay for college. I can’t be sure but his total silence on these subjects makes me think he has no views because he has never met anyone who talked about these matters. Certainly they are not part of his own privileged upbringing.

 

I ask myself why so many people voted in the primaries for a man who is boastful, a man who makes our-in-the-sky promises, a man who ridicules his opponents, a man who accused Ted Cruz’s father of involvement in the JFK assassination because he read it in the National Enquirer, a man who wants to make the 2016 election a referendum on Bill Clinton’s infidelities.

 

Trump is vulgar, crude, and childish. I recall when Anderson Cooper asked in a forum why he posted an unflattering picture of Cruz’s wife on Twitter. Trump’s response? “He did it first!” Cooper, to his credit, said, “With all due respect, sir, that’s the kind of answer I would expect to hear from a five-year-old on the playground.”

 

Trump lacks dignity and gravitas. He is like a carnival barker, imploring voters to buy a ticket and go inside to see impossible, unbelievable, wonderful, horrible sights. And people vote for him.

 

Why?

 

I wonder if they vote for a charlatan for the same reason they rush to sign up for charter schools. I wonder why legislators continue to pour hundreds of millions into an industry that does not produce the results that were promised. The public, the media, and the legislators are easily hoodwinked. They want to believe. They swallow empty promises. Even when presented with evidence that charters are no better and often worse than public schools, even when they learn of scandals and frauds, they believe.

 

Why the gullibility? Why the willingness to play three-card monte with a card shark? Why are so many so willing to be duped by a con man? Is there something in our national character that sets us up to be duped by a snake oil salesman?

 

Gullibility. That is why a businessman who has declared bankruptcy four times, a man who insults and ridicules anyone who challenges him, a man who will descend into the gutter whenever he wishes, is soon to be the Republican nominee for President of the United States.

 

 

 

 

 

 

A grand jury in Escambia County in Florida indicted Newpoint Education Partners and its vendors for fraud and other crimes. Newpoint Education Partners was created by former employees of Ohio’s controversial for-profit White Hat Management company.

 

“An Escambia County grand jury indicted Newpoint Education Partners and three other companies for grand theft, money laundering and aggravated white collar crime.

 

“Newpoint managed charter schools in Escambia County for 21st Century Academy of Pensacola. Last year, the Escambia County School Board revoked charters for Newpoint Academy and Newpoint High for grade tampering and misuse of public funds. All three Newpoint schools — Newpoint High, Newpoint Academy and Five Flags Academy — closed. The enrollment at the three schools totaled about 350 students.

 

“The grand jury alleges that Newpoint and its vendors fraudulently billed 21st Century Academy hundreds of thousands of dollars for supplies, equipment and services. Newpoint and its vendors allegedly laundered the proceeds of the thefts through multiple bank accounts to conceal the criminal activity.

 

“The source of the alleged laundered proceeds was charter school grant funds appropriated by the state for charter schools to use to procure supplies, equipment and services necessary for startup.

 

“I’ve prosecuted charter schools before, but not this particular type of scheme,” Assistant State Attorney Russell Edgar said. “I’ve prosecuted people involved with charter schools for committing theft of funds and prosecuted people for misusing children to work off campus during school, but this is the first time prosecuting a managing company.”

Bill Phillis is a retired administrator who champions the cause of public schools in Ohio. He founded the Ohio Coalition for Equity and Adequacy. Having served as a deputy commissioner of the state education department, he closely tracks the state budget. He frequently writes about the charter industry and its unscrupulous raid on public monies. If you care about public schools in Ohio, you should add your name to his mailing list and consider a contribution.

 

Today he writes:

 

“Federal government adds $333 million to $3 billion already spent to expand the failed charter industry

 

“Congress and the U.S. Department of Education made a devilish wrong turn in public K-12 education policy with the enactment of the 2001 No Child Left Behind Act (NCLB). Departing from its historical role of supplemental support for the public common schools, the federal government, in some respects, turned against what Horace Mann declared the “greatest discovery of mankind”- the public common school.
“NCLB provided a variety of weapons to discredit and punish the public system. In that context, the feds have appropriated $3 billion to promote the charterization of the public system. In spite of the corruption and racketeering in the charter industry and its dubious performance, the feds have put an additional $333 million in Every Student Succeeds Act (ESSA) for 2016 to further expand the industry.
“The charter industry seems to have a stranglehold on the federal politicians. The charter lobby, via campaign contributions and other perks, are able to advance this inferior alternative to the great American common school system.

“Those great political and educational leaders, who founded the common school system, never envisioned that government would become the enemy of the real public school system.”

 
William Phillis
Ohio E & A

 
Ohio E & A
100 S. 3rd Street
Columbus OH 43215
Sent by ohioeanda@sbcglobal.net

 

 

The annual rankings of the “best” high schools was recently published by US News & World Report. Pay no attention. They are meaningless. They make no distinction between highly selective schools and open enrollment schools. If a high school has an entry exam or gets rid of kids with low test scores, it is ranked higher than high schools that accept everyone and do a great job.

 

The magazine should be embarrassed to publish such a misleading ranking. There is no ranking that would be meaningful. It is sort of like listing “the best families” in America. No, you won’t be admitted.