Archives for category: Virtual Charter Schools

You knew that when the U.S. Supreme Court turned down a request from Oklahoma to approve a religious charter school, there would be more requests in the pipeline. Oklahoma was rejected by a 4-4 vote only because Justice Amy Coney Barrett recused herself, because of her friendship with one of the lawyers for the online Catholic school.

Recently, as I reported, Oklahoma returned with a proposal for an online Jewish charter school, a Ben Gamla charter. The entire state of Oklahoma has a population of only 9,000 Jews. They are not requesting a Jewish school, but an entrepreneur connected to a Florida for-profit charter chain is.

Religious charter schools are a big problem for the national charter lobby. They say that charter schools are “public” schools. The advocates for religious charter schools say they are not public schools. They are specifically religious schools.

The 74 reported the latest proposal:

When the U.S. Supreme Court deadlocked this year in a case over whether charter schools can be religious, experts said it wouldn’t take long for the question to re-emerge in another lawsuit.

They were right.

In Tennessee, the nonprofit Wilberforce Academy is suing the Knox County Schools in federal court because the district refuses to allow a Christian charter school. Attorney General Jonathan Skrmetti is on the school’s side. He issued an opinion last month that the state’s ban on religious charter schools likely violates the First Amendment. 

“Tennessee’s public charter schools are not government entities for constitutional purposes and may assert free exercise rights,” he wrote to Rep. Michele Carringer, the Knoxville Republican who requested the opinion. 

The legal challenge in Tennessee comes as a Florida-based charter school network prepares to submit an application to the Oklahoma Charter School Board for a Jewish virtual charter high school. Peter Deutsch, the former Democratic congressman who founded the Ben Gamla charter schools, began working on the idea long before the case over St. Isidore of Seville Catholic Virtual School even went to court. The 4-4 tie in May means that an Oklahoma Supreme Court decision blocking the school from receiving state funds still stands. 

The National Ben Gamla Jewish Charter School Foundation runs a network of Hebrew language charter schools in Florida. Now it wants to open a virtual religious charter school in Oklahoma. (Ben Gamla)

“The prior decision shows that there’s an open question here that needs to be resolved,” said Eric Baxter, vice president and senior counsel at Becket Fund for Religious Liberty, a law firm representing the National Ben Gamla Jewish Charter School Foundation. “We hope the court will get it right this time. We hope the federal courts get it right without having to go to the Supreme Court.”

Idaho also confronted the issue earlier this year. The state’s first charter, Brabeion Academy, initially promoted the school as Christian. But it was approved in August as a nonreligious school and will open as such next fall. Related‘A Day to Exhale’: Supreme Court Deadlocks on Religious Charter Schools — For Now

Deutsch, Skrmetti and other supporters of faith-based charter schools base their argument on three earlier Supreme Court rulings allowing public funds to support sectarian schools. They say that excluding religious organizations from operating faith-based charter schools is discrimination and violates the Constitution. But leaders of the charter sector and public school advocates argue that classifying charter schools as private would threaten funding and civil rights protections for 3.7 million students nationwide…

To Oklahoma Attorney General Gentner Drummond, the debate is settled, for now. In November, he said his office would “oppose any attempts to undermine the rule of law.” 

Americans United, which advocates for maintaining church-state separation, has also issued a warning over the new school. The organization represented parents and advocates in a separate case over the school. 

“Religious extremists once again are trying to undermine our country’s promise of church-state separation by forcing Oklahoma taxpayers to fund a religious public school. Not on our watch,” Rachel Laser, president and CEO, said in a press release….

The demand for a Jewish charter school would be much higher in Florida, which has an estimated Jewish population of nearly 762,000, compared with about 9,000 in Oklahoma. 

Please open the link to continue reading the article.

Accell Schools, a network of for-profit online charter schools, announced that Bill Bennett has been hired to serve as Founding Provost of a new chain of online Classical Academies. Bennett will also serve as provost to two brick-and-mortar charter schools, one in Toledo, Ohio, the other in Clarksburg, West Virginia.

The founder of Accell Schools is Ron Packard, who has played a prominent role in the for-profit, virtual charter school industry for years.

You may recall Ron Packard. I have written about him in the past. His background is in finance and management consulting. He worked for Goldman Sachs and McKinsey. He was never a teacher or principal, which I suppose makes him an ideal education entrepreneur, unbound by tradition, open to innovation, and alert to profit making opportunities.

When he was CEO of K12, Inc., the leader in virtual charter schools, he was paid $5 million a year. K12 dealt with numerous lawsuits and controversies in relation to low test scores, low teacher pay, low graduation rates, and other issues. In 2020, K12 Inc. became Stride, which continues to be a leader in the virtual charter industry.

In 2014, Packard founded Accell as a charter chain. His company bio describes his experience:

Ron previously founded and was CEO of K12 Inc., where he grew the company from an idea to nearly $1B in revenue, making it one of the largest education companies in the world. Under his leadership, revenue compounded at nearly 80%. Prior to K12, he was CEO of Knowledge Schools and Knowledge Learning Corporation, and Vice President at Knowledge Universe, one of the largest early childhood education providers in the U.S.

He has also played a pivotal role in investments across the education sector, including LearnNow, Children’s School USA, LeapFrog, TEC, and Children’s Discovery Center. Earlier in his career, Ron worked in mergers and acquisitions at Goldman Sachs and served clients at McKinsey & Company.

Bill Bennett was U.S. Secretary of Education under President Reagan. He championed vouchers and morality during his tenure.

Until he became chair of the board of K12, he was known as a skeptic of computers in the classroom.

He wrote in his book “The Educated Child,”

“There is no good evidence that most uses of computers significantly improve learning.”

— from his 1999 book The Educated Child

Bennett said in a February 2001 Bloomberg interview:

“From what I’ve observed in schools, we’d be better off unplugging the computers and throwing them out.” 

He abandoned his skepticism when he joined the K12 company.

His new role as a “founding provost” of online “classical academies,” calls upon his background as a moralist. His wildly popular “The Book of Virtues” made millions of dollars and established Bennett as the nation’s most moral man.

But this was a standing he lost years ago when it was revealed that he had a serious gambling habit.

The New York Times wrote that the “relentless moral crusader” was also a “relentless gambler.” It estimated that in 2003 that he had lost more than $8 million in Las Vegas.

Mary McNamara wrote in the Los Angeles Times:

It is just too delicious — the image of the man who wrote not only “The Book of Virtues” but “The Children’s Book of Virtues” pulling into Las Vegas in his comped limo, bags whisked to his comped high-roller’s suite while he heads into the blaring, bleating belly of the beast to spend hours pumping thousands of dollars into the slots.p. Turns out William J. Bennett, who considers passing judgment on the personal lives of our leaders a moral duty and who all but called for President Clinton’s head on a platter in “The Death of Outrage,” is a high-stakes gambler. The pulpit bully who took down the moral predilections of single parents, working mothers, divorced couples and gays in “The Broken Hearth,” the man who, despite rather formidable personal girth, preaches against those “ruled by appetite,” has, according to Newsweek and the Washington Monthly, dropped as much as 8 million bucks in high-stakes gambling over the last 10 years.

How much fun is that ?

Bennett’s fall from grace was camera perfect, and no doubt he’ll get big points from the judges for the spin of his attempted recovery. Gambling is legal, he quickly pointed out, at least where he did it. And he never put his family in danger. And it wasn’t $8 million, it was “large sums of money.” Furthermore, he always paid taxes on his winnings and, Atlantic City and Las Vegas being the charitable institutions they are, he pretty much “always broke even.”

If that weren’t intoxicating enough for his many detractors, within minutes of serving up this layer cake of denial, Bennett made a public vow that his gambling days are over because “this is not the example I want to set.”

Or as Kenny’ll tell you, you gotta know when to walk away, and know when to run .

Bennett got into hot water in 2005 when he made a comment on his radio show that was widely denounced by both parties:

Speaking on his daily radio show, William Bennett, education secretary under Ronald Reagan and drugs czar under the first George Bush, said: “If you wanted to reduce crime, you could, if that were your sole purpose; you could abort every black baby in this country, and your crime rate would go down.”

He went on to qualify his comments, which were made in response to a hypothesis that linked the falling crime rate to a rising abortion rate. Aborting black babies, he continued, would be “an impossible, ridiculous and morally reprehensible thing to do, but your crime rate would go down”.

So, despite these handicaps, now 20 years past, Bill Bennett is making a comeback. Everyone deserves a chance to rehabilitate themselves. Even Bill Bennett.

For years, Pennsylvania has funded a large number of cybercharters. Hundreds of millions of taxpayer funding flows to cybercharters annually. For years, the state has known the very poor educational results of these online charter schools. Yet the state continues to fund them. Why?

PDE has released 2022-2023 school performance data
Here’s what those ubiquitous cyber charter ads (that your tax dollars pay for) don’t tell you:
Entries in red are 20 percentage points or more below statewide averages.

Forgive me for posting two reviews of my last book, which was published on January 20, 2020.

As I explained in the previous post, I did not see either of these reviews until long after they appeared in print. Slaying Goliath appeared just as COVID was beginning to make its mark, only a few weeks before it was recognized as a global pandemic. In writing the book, I wanted to celebrate the individuals and groups that demonstrated bravery in standing up to the powerful, richly endowed forces that were determined to privatize their public schools through charters or vouchers.

America’s public schools had educated generations of young people who created the most powerful, most culturally creative, most dynamic nation on earth. Yet there arose a cabal of billionaires and their functionaries who were determined to destroy public schools and turn them into privately-managed schools and to turn their funding over to private and religious schools.

Having worked for many years inside the conservative movement, I knew what was happening. I saw where the money was coming from, and I knew that politicians had been won over (bought) by campaign contributions.

Publishing a book at the same time as a global pandemic terrifies the world and endangers millions of people is bad timing, for sure.

But the most hurtful blow to me and the book was a mean-spirited review in The New York Times Book Review. The NYTBR is unquestionably the most important review that a book is likely to get. Its readership is huge. A bad review is a death knell. That’s the review I got. The reviewer, not an educator or education journalist, hated the book. Hated it. I found her review hard to read because she seemed to reviewing a different book.

I was completely unaware that Bob Shepherd reviewed the review. I didn’t see it until two or three years after it appeared. He wrote what I felt, but I, as the author, knew that it was very bad form to complain, and I did not.

So I happily post Bob Shepherd’s review of the review here.

Jennifer Palmer of Oklahoma Watch lays out the details of Oklahoma’s biggest charter scandal. The owners of the for-profit online charter school Epic have been charged with embezzling millions of taxpayer dollars.

The size of the scandal alleged at the state’s largest online school befits the school’s name: epic. 

Investigators say two men at the helm of Epic Charter Schools defrauded taxpayers out of tens of millions of dollars over a decade. Details of the scheme, which the state auditor called the largest abuse of taxpayer dollars in Oklahoma history, will be unveiled in court this week. 

A hearing in the embezzlement case against David Chaney and Ben Harris begins Monday. Oklahoma County District Special Judge Jason Glidewell allotted five days for the preliminary hearing, which is like a mini-trial, with witnesses and evidence and cross-examination. The purpose is for the judge to determine whether there’s enough probable cause to proceed to trial.

Chaney and Harris are each charged with fifteen felonies, including embezzlement, money laundering, computer crimes and conspiracy to defraud the state. They have denied wrongdoing.

Epic’s former chief financial officer, Josh Brock, faces the same felony charges but waived his preliminary hearing. He is expected to be one of several witnesses this week and will likely take a plea deal…

Prosecutors’ review of Epic Youth Services’ bank accounts revealed the company collected more than $69.3 million in management fees between 2013 and 2021, court records show. Of that, the trio split $55 million: Harris received $25 million, Chaney received $23 million and Brock received more than $7 million.  

I will be in conversation with Todd Scholl of the Center for Educator Wellness & Learning in South Carolina tonight February 15 at 7 pm EST.

We will talk about privatization of public schools and the attacks on public schools.

The conversation will be livestreamed on Facebook.

Tonight February 15 at 7 pm.

The big issue currently raising hackles in Oklahoma is whether a Catholic Church should be allowed to operate a publicly-funded virtual charter school.

Leave aside, for the moment, whether the state should be funding a religious school at all.

Leave aside, for now, the fact that multiple evaluations have reported that virtual schools get worse results than brick-and-mortar schools.

Leave aside, for now, the fact that Ohlahoma already has seven virtual schools already.

The state attorney general is opposed to it.

But Governor Kevin Stitt and the Oklahoma Statewide Virtual School Board approved the idea (3-2), so the issue will be resolved in court.

Governor Stitt just selected one of the Board’s members to be his top education advisor:

OKLAHOMA CITY — An Oklahoma official who voted in favor of founding the nation’s first religious charter school will serve as Gov. Kevin Stitt’s next education secretary.

Nellie Tayloe Sanders, of Kingfisher, is the third member of the Oklahoma Statewide Virtual Charter School Board to join the Stitt administration. She is the second to do so after approving a Catholic charter school in a landmark 3-2 vote last year. Stitt was a staunch advocate of the school.

As education secretary, Sanders will serve as the governor’s top adviser on school policy. She will be paid $25,000 a year for the position, according to the Governor’s Office.

 Oklahoma Statewide Virtual Charter School Board member Nellie Tayloe Sanders, left, pictured at an Oct. 9 meeting in Oklahoma City, is Gov. Kevin Stitt’s choice to be his education secretary. (Photo by Nuria Martinez-Keel/Oklahoma Voice)

“My goal is to empower parents with choices and support teachers in unleashing their full potential – moving beyond the constraints of politics and bureaucracy,” Sanders said in a statement Wednesday. “Governor Stitt’s commitment to educational freedom resonates deeply with me.”

Sanders resigned from her seat on the Statewide Virtual Charter School Board on Sunday in an email to Senate President Pro Tem Greg Treat, his office confirmed. The Senate leader had appointed Sanders to the board in February to oversee the seven Oklahoma charter schools that primarily teach online.

However, she won’t leave the board entirely. The education secretary holds a non-voting seat.

The board’s president, Robert Franklin, said the news of her appointment to the governor’s Cabinet caught him off guard.

“If you were asking me (about) a laundry list of colleagues that I thought had a seasoned background and a footprint in Oklahoma’s educational landscape, I wouldn’t have picked Mrs. Sanders,” Franklin said. “But I know she’s thoughtful. I know she’s kind. I know she’s an engaging person. So, I certainly wish her well.”

In other developments, the judge in the Catholic virtual charter school case stepped aside, because he had relationships with people on both sides of the issue.

Lawyers involved said the case was starting all over because the state board had entered into a contract with St. Isidore, and the board itself had new members.

One new board member said that the Catholic Church sponsoring the school would not provide a Catholic education, but the church disagreed.

Appointed Oct. 27, one of the new SVCSB members is Brian Shellem, a former Edmond mayoral candidate and the president of Advanced Automotive Equipment.

Shellem has also been appointed by Gov. Kevin Stitt to serve on the new Statewide Charter School Board, which the Oklahoma Legislature created last session to replace the SVCSB on July 1. It will become the new board overseeing virtual charter schools and other charter schools.

Shellem said that although he was not a board member when the SVCSB decided to authorize St. Isidore, he supports more educational choices for students, as long as those choices meet the right educational standards and requirements.

“The (St. Isidore) contract is not to provide religious education, it’s to provide education and a curriculum that the state requires, and I don’t think they should be disqualified because they are a Catholic school,” Shellem said. “I equate it to if you go to a car wash and you pay $20 for a car wash and then they go, ‘Hey, we’re gonna give you for free the wheel package and the air freshener,’ and they don’t charge you, [now you’ve got] a $5 value, but we’re not charging you for it. The state’s not contracting them to teach religious education, but it happens to be in that environment. They’re getting contracted to teach the curriculum that’s required by the state.”

Throughout their application process, St. Isidore leaders have indicated that the school intends to provide students with a Catholic education.

Shellem said he believes charter schools are public schools, so he could understand how including the proverbial extra car wash package that is Catholic education could create some legal questions to be dealt with in court.

[Note: You may have seen this article Friday. I moved it because it was supposed to appear today.]

Guess what? Another massive scandal involving virtual charter schools. Not ho-hum because the money skimmed off is a lot: $44 million. The U.S. Attorney for the Southern District of Indiana said it was the biggest fraud case he had handled.

If you recall, the biggest virtual charter school fraud case ever happened in California, where the A3 charter chain skimmed off hundreds of millions of dollars. In Pennsylvania, Nick Trombetta, founder of the Pennsylvania Cyber Charter School, was sent to prison in 2018 for 20 months for fraud. Steven Ingersoll, the optometrist who founded four virtual charter schools in Bay City, Michigan, received a prison sentence of 40 months. And who can forget Ohio’s ECOT Man (Electronic Classroom of Tomorrow), who collected $1 billion from the state over 20 years, gave lots of campaign donations, but declared bankruptcy when the state auditor asked him to refund millions for phantom students?

We know all this. We know that students in virtual charter schools get low scores, have low graduation rates, collect generous public funding, but the money keeps flowing. Why?

New story: Indiana.

A federal grand jury returned indictments against the operators of two online charter schools in Indiana, the Indiana Virtual School (IVS) and the Indiana Virtual Pathways Academy (IVPA). The operators inflated their enrollments to collect state monies. Each defendant faces 10-20 years in federal prison for each count if convicted. The charges are conspiracy to commit wire fraud, wire fraud, and money laundering. The group received over $44 million from the state. Most of the students either never attended the schools or left but remained on the rolls.

FOX 59 in Indianapolis reported:

INDIANAPOLIS — Officials with the U.S. Attorney’s Office for the Southern District of Indiana released more information about a recent indictment brought forward in a multi-million dollar education-related fraud scheme.

According to the office, three men were officially indicted in relation to the scheme, including:

  • Tom Stoughton, 74, a Carmel resident who was indicted on 16 counts of wire fraud, 57 counts of money laundering and one count of conspiracy to commit wire fraud
  • Phillip Holden, 62, a Middletown resident who was indicted on 16 counts of wire fraud and one count of conspiracy to commit wire fraud
  • Percy Clark, 81, a Carmel resident and the former superintendent of Lawrence Township schools, who was indicted on 16 counts of wire fraud, 11 counts of money laundering and one count of conspiracy to commit wire fraud.

In addition, officials said that 61-year-old Christopher King, a Green Fork resident, pleaded guilty to one count of conspiracy to commit wire fraud.

According to previous reports, officials allege that the individuals named in the indictment received more than $44 million in funding from the Indiana Department of Education to operate two online charter schools: the Indiana Virtual School and the Indiana Virtual Pathways Academy.

Officials said that IVPA was an offshoot of IVS that was created in 2017 so IVS could avoid losing its charter with Daleville Community Schools. This comes after IVS reportedly received an F grade from the Indiana Department of Education.

The individuals listed in the indictment reportedly used fraudulent enrollment reporting methods to receive funding from the state that they were not owed nor supposed to be eligible for.

Between 2016 through 2019, the defendants submitted false numbers for more than 4,500 students they knew were not attending either school in order to receive state tuition reimbursement.

”The members of the conspiracy falsely claimed thousands of students were enrolled even though those students were not attending classes or receiving services,” Zachary Myers, the U.S. Attorney for the Southern District of Indiana, said.

The court documents state that the school did not unenroll students even if they were inactive, and reportedly pushed incomplete student applications through the enrollment process, both of which increased the enrollment numbers. This included students who had dropped out or those who never completed their application process, as well as students who never logged in for classes. It also included students who never knew they were reenrolled….

The two schools reportedly paid the state funds to fraudulent for-profit companies, the U.S. Attorney’s Office for the Southern District of Indiana claims. The companies were reportedly controlled and/or operated by Stoughton and the money was funneled through the companies to pay millions of dollars to Stoughton, Clark, King and others.

Myers said the defendants used the funds to purchase vehicles and boats, as well as pay for private school tuition. 

Herbert Stapleton, a special agent in charge with the FBI in Indianapolis, said that the cooperation with other agencies, including the State Board of Accounts in Indiana, was integral in starting this investigation and uncovering the potential fraud. 

Stapleton said that this case was “extremely complex,” including hundreds of thousands of records potentially relevant to the case that were analyzed and categorized. This included hundreds of interviews with fraudulently enrolled students and their parents, including an interview with parents whose student died but was still fraudulently enrolled at the school.

Pennsylvania has long awarded generous fees to cybercharters, despite the fact that prominent cybercharter founders have been convicted of massive frauds. In this article, Lawrence Feinberg and Rob Gleason call for a change in the funding formula, which unfairly benefits the cybercharters.

Lawrence Feinberg is the director of the Keystone Center for Charter Change and a member of the Haverford School Board in Delaware County. Rob Gleason is former chairman of the Pennsylvania Republican Party and is president of the Westmont Hilltop School Board in Cambria County.

They write:

School boards in 466 of Pennsylvania’s 500 school districts have passed resolutions calling for common-sense reforms to the state’s 26-year-old charter school law, such as those included in House Bill 1422.

That’s several thousand locally elected, volunteer school directors – Republicans and Democrats – responsible for levying taxes on their neighbors in order to fund public education.

In July, the state House of Representatives, in a bipartisan vote that saw 20 GOP members join with Democrats, agreed with those school directors and voted for HB 1422, which makes comprehensive and long-overdue reforms to the way cyber charter schools are funded and governed.

Most importantly, HB 1422 establishes a statewide tuition rate of $8,000 per non-special education student and a tiered tuition rate for special education students that more accurately reflects the lower cost of providing a virtual education and that provides resources based on a student’s special education needs.

The cyber charter community has come out strong against HB 1422, alleging that the reduction in tuition rates will close schools and eliminate school choice. However, that’s simply not true and is based on a desperate desire to hang on to the status quo, in which cyber charter schools are benefiting by hundreds of millions of taxpayer dollars in profit.

Think that’s an exaggeration? In the annual audit for the 2021-22 school year, the state’s largest cyber charter school reported total revenues of $397.5 million while only incurring $275 million in expenses, for a profit of $122.5 million. Statewide, the reforms included in HB 1422 could save school districts – and taxpayers – more than $400 million.

That’s serious money for the public school districts that pay those bills and the taxpayers who have taken the brunt of the local property tax increases required to pay them.

Since its introduction, HB 1422 has been the subject of numerous attacks that paint the bill in a false light. But what the attacks fail to mention is that the bill contains a number of provisions that will help cyber charters make and save money. Under the bill:

Like any large, profitable business, the cyber charter community is looking to protect its profits.

• Cyber charters will be able to sell their courses and programs to other schools.

• School districts will be required to transport special education students who choose to attend a cyber charter school.

• Other public schools will be required to provide space for cyber charter school students to take state tests.

• Intermediate units will be required to provide ser- vices and supports to cyber charter school students who need them.

This is not a Republican or Democratic issue. This is not a school choice issue. This is simply about the most efficient and effective way to use limited resources to provide public education.

When you sit on a school board as we do and you see how much money is going to cyber charter schools, you start to take issue with those ubiquitous (and expensive) ads that say cyber charter schools are “free” when you know that you’re going to have to raise taxes on your friends and neighbors or cut programs and services to kids in your school district to pay those costs.

We hope you’ll join us in supporting HB 1422 and calling on the state Senate to act on the bill and get it to Gov. Josh Shapiro’s desk.

Oklahoma has a major charter scandal on its hands, which has not dampened the enthusiasm of the Republican Governor, legislators, and state superintendent for charters and vouchers.

EPIC Charter Schools opened in Oklahoma in 2011. It was the state’s first online school and was hailed for its innovative delivery of education. As early as 2013, authorities suspected financial irregularities. Not until 2019 did the public learned that EPIC was under state investigation for embezzling money and inflating its enrollment. The founders tried to block the investigation by insisting that they were a private business and could not be audited. The company collected tuition from the state and retained 10% of its revenues. The state auditor estimated that EPIC’s founders inappropriately diverted $22 million.

But now the founders face new charges of financial crimes.

Founders of Epic Charter Schools are facing new charges of money laundering and presenting false claims to the state, bringing the total number of charges to 15.

Epic co-founders David Chaney and Ben Harris and Chief Financial Officer Josh Brock, were arrested and charged with a list of felonies in June 2022. Charges included racketeering, embezzlement of state funds, and obtaining money by false pretense.

The amount of diverted money so far totals $30 million. Republicans complain about public schools, but no district superintendent or principal has ever been accused of massive crimes like those of EPIC. Let it be noted that virtual charter schools have been the source of the biggest financial crimes.

In Indiana, state officials sued two defunct virtual charters for defrauding the state of $154 million.

In California, the A3 online charter chain was charged with defrauding the state of $400 million.

Sean McManus of Australia, along with Jason Schrock of Long Beach, led a statewide charter school scheme from 2016 to 2019 in which they used a network of mostly online charter schools to defraud the state of approximately $400 million and used $50 million of that amount for personal use. They did so by falsely enrolling students and manipulating enrollment and attendance reporting across their schools to get more money per student than schools are supposed to, prosecutors said.

In Ohio, the state paid the owner of the Electronic Classroom of Tomorrow (ECOT) about $1 billion, despite its abysmal graduation rates and scores. When the state auditor demanded repayment of $60 million for phantom students, ECOT declared bankruptcy.

In Pennsylvania, the founder of the Pennsylvania CyberCharter School was sentenced to 20 months in prison for pocketing $8 million.

No matter how many frauds are committed by Cybercharters, they do not lose their luster. Why? Usually, they give generous political contributions.