This is not a surprise. Charter schools as currently structured are a uniquely criminogenic enterprise.
Truth be told, the 18% management fee referenced in the article is rather larcenous in and of itself, since most of the managing is done by the staff on each campus.
If anyone believes that allowing charter schools to “unleash the market” will produce better results for less, I have a bridge in Brooklyn to sell you:
The founder of an Akron-area charter school company is accused of using thousands of dollars parents paid for student lunches and uniforms and millions more from Ohio and Florida taxpayers to fund home mortgages, plastic surgery, extensive world travel, credit card debt and more.
Criminal charges filed last week in Florida against Marcus May also allege he improperly used private and public funds earmarked for students’ education to expand his charter school empire in Columbus, Akron, Cleveland and Dayton.
Florida State Attorney William “Bill” Eddins brought the charges of racketeering and organized fraud against May, the founder of Newpoint Education Partners and Cambridge Education, a Fairlawn company that manages about 20 charter schools in Cincinnati, Dayton, Columbus, Akron, Youngstown, Canton and Cleveland.
In a prepared statement provided to the Beacon Journal on Friday, Cambridge Executive Director John Stack said: “My co-owners and I asked for and today accepted Mr. May’s resignation as managing member of Cambridge. We are now in discussions to remove him completely from ownership in the company because we feel it’s in the best interest of our schools.
“Despite this distraction, my colleagues at Cambridge and I will continue to focus on our core mission and the students we serve as we have always done.”
Cincinnati businessman Steven Kunkemoeller also was charged in the First Judiciary Circuit, a regional court in Florida. Kunkemoeller is a longtime business partner of May, according to a Beacon Journal/Ohio.com report from December and a multi-state investigation that included help from the Summit County Prosecutor’s Office.
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The Florida prosecutor alleges that the men fabricated invoices, embellished enrollment, misappropriated public funds and created an elaborate network of limited liability companies in order to bilk the federal and state governments, as well as parents and students.
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School and business records obtained by the Beacon Journal and detailed by a forensic accountant working on the case show that May and Kunkemoeller marked up the price of services and supplies provided to the charter schools they managed in Ohio and Florida, sometimes more than doubling the cost of school uniforms, desks, computers, chairs and website design.
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Between 2010 and 2015, $350,000 was collected from students and parents for uniforms, and another $11,000 for school lunches, the Florida investigation found. Beyond Newpoint’s 18 percent management fee, millions more have been collected from inflated or allegedly fictitious invoices, according to court filings.