Cleveland Academy of Scholarship Technology & Leadership Enterprise (CASTLE)

“South Euclid man indicted on money laundering charges involving Cleveland charter school.” The News-Herald (OH), 8/11/2013

Ten people, including a South Euclid man, from 13 companies were indicted Tuesday on multiple charges relating to the operation of a Cleveland charter high school.

Cuyahoga County Prosecutor Timothy J. McGinty said the 32-count indictment included charges of engaging in a pattern of corrupt activity, conspiracy to engage in a pattern of corrupt activity, theft by deception, money laundering and unlawful interest in a public contract.

Cincinnati College Preparatory Academy

“Charter school officials to appear in court for allegedly spending $148K in school funds.” WCPO TV (Cinncinati, OH), 04/05/2013

CINCINNATI - Two members of a Cincinnati charter school are scheduled to appear in court Friday morning after they allegedly stole more than $148,000 in taxpayer dollars from school coffers.

EdVantages Academics

“Charter schools pay off for CEO’s family.” Dayton Daily News (OH), 12/15/2012

A Dayton Daily News investigation found that a company managing several taxpayer-funded charter schools in the area is a lucrative family business whose husband-and-wife management team makes more than $400,000 a year.

ScholArts Preparatory and Career Center for Children

“ScholArts charter school to close today.” The Columbus Dispatch (OH), 2/28/2013

A charter school in the Milo-Grogan neighborhood is giving up its legal fight to stay open and will hold its final day of classes today.

ScholArts Preparatory and Career Center for Children dropped its appeal in Franklin County Common Pleas Court yesterday...

The school has received “F” ratings for student performance from the state Department of Education for the past five years. The closing ends legal wrangling that began in October when ScholArts’ sponsor, Kids Count of Dayton, told the school that it would be terminating its sponsorship.

VLT (Value Learning and Teaching) Academy

“Audit flags ethics questions at charter school.” Cincinnati Enquirer (OH), 9/11/2012

A local charter school overpaid an employee $3,333 and committed possible ethics violations, according to the Ohio Auditor’s Office...

In one case, the school accepted a bid from a janitorial company even though it was higher than other bids. The company’s owner works for the school and is married to the superintendent. In the other case, the superintendent signed a $17,000 summer contract for her daughter. Both are potential conflicts of interest...

Lee said the school has been contracting with the janitorial company for years and has not had any prior issues. But in 2009, The Enquirer reported that the auditor’s office flagged the same janitorial service company contract in 2007, noting the potential conflict of interest.

VLT is one of the larger charter schools in the area, serving around 800 students in grades K-12. Its academic rating last year was Continuous Improvement, the third highest of six categories on the Ohio Report Card...

Theodore Roosevelt Public Community School

“Thousands in receipts questioned in school firing - Charter ousts its superintendent after audit finds discrepancies.” The Cincinnati Enquirer, 6/17/2012

The superintendent of two local charter schools has been fired from his $80,000-a-year job because of questionable receipts for thousands of dollars of purchases that surfaced during a routine audit.

The school board in May fired Roger Conners from the Theodore Roosevelt Public Community School in South Fairmount and its sister school, the College Hill Leadership Academy. The receipts only involved the Theodore Roosevelt school...

According to the records, school Treasurer Doug Mangen flagged $32,672 in receipts submitted by Superintendent/Principal Roger Conners as “fraudulent”

Several other receipts were flagged as “questionable,” and a few were flagged as “illegal.”

Virtual Community School of Ohio

“Reynoldsburg board places virtual school on probation.” ThisWeek Community News (OH), 7/18/2012

The Reynoldsburg Board of Education voted unanimously Tuesday, July 17, to impose a probation period of one school year for the Virtual Community School of Ohio.

Board members had discussed suspending the online school, which serves 1,300 students from kindergarten through 12th grade, because of concerns over finances and hiring practices, but instead agreed to place the school on probation for the 2012-13 school year.

The Reynoldsburg district sponsors the online charter school.

Superintendent Steve Dackin said he was prepared to "trust but verify."

A state audit in January revealed the online school was facing an $800,000 deficit for the 2012-13 school year and had failed to satisfy its debts and liabilities or pay bills on time.

The audit also said the school had hired the wife, brother and son of Virtual Community School Superintendent James McCord, a possible violation of Ohio's ethics laws.

"We had great concerns about the financial audit of VCS," Dackin said. "We created a list of assurances for the school to respond to and they have agreed to those assurances.

"I am prepared to trust, but verify, that they will follow the plan during the probation period," he said.

ISUS Institute of Construction Technology

“$2M debt to close charter school; ISUS forced to suspend operations for a year to address its $2M debt.”  Dayton Daily News (OH), 6/21/2012

DAYTON — ISUS, an award-winning charter school, will suspend its operations for the 2012-13 school year to address its business plan and a $2 million debt.

“We need to develop a new economic model that will provide a more predictable cash flow,” said U.S. District Judge Walter H. Rice, vice chairman of the ISUS trustees. “We simply cannot operate next year.”

The school has been hit hard by the recession and housing crisis, relying heavily on money from the sale of houses built by students as well as state and federal funds.

ISUS, or Improved Solutions for Urban Systems, serves students ages 16 to 22 who have previously dropped out of school; about 70 percent have had brushes with the law.

ISUS students can earn high school diplomas, college credits and industry credentials in construction, health care or manufacturing...

The school enrolled 300 at its peak in years past, but was down to fewer than 200 students for 2011-12.

State and federal grants and earmarks also provided funding for ISUS.

“We used to get a great many grants but, because of cash flow, we have fallen behind our debt obligation,” Rice said, “which then makes us less attractive for grants.”

This winter, foreclosure proceedings began on the ISUS building at 140 N. Keowee St., and a receiver was appointed to oversee the school’s business.

Rice said the foreclosure had not gone through as of Wednesday, but the building’s sale could help toward the school’s $2 million debt...

Ohio charter schools (mishandled finances not uncommon)

“Mishandled finances not uncommon in charter schools.” The Columbus Dispatch (OH), 4/2/2012

Spend first, ask permission later, and don’t bother with receipts.

The loose financial systems at some of Ohio’s charter schools have led to questionable spending in recent years. Some schools hired treasurers with spotty track records; others hired qualified treasurers but disregarded their advice when they insisted on better checks and balances.

The recent case of a charter-school treasurer who misspent more than $600,000 in public money over a decade at several schools has highlighted how common fiscal missteps have been in charters. Fifteen of the 20 entities with the most charges of misspending by the state auditor are charter schools...

State Auditor Dave Yost said he’s pushing for a law that would strengthen accountability for school treasurers and require more training about how to manage public dollars.

Officials at the Ohio Department of Education, which licenses school treasurers, said they plan to get tough on charter-school treasurers with a history of fiscal mismanagement...

A treasurer from Gahanna — Ed Dudley Sr. of LED Consulting — has 46 findings for recovery from the state auditor. The findings stem from work at seven charter schools and total more than $440,000.

Dudley says he worked tirelessly to try to persuade charter-school boards to follow the rules of spending public money, but his pleas fell on deaf ears. Few were willing to rein in the school leader, often the founder, too, even when he or she was spending money without any oversight...

Greater Achievement Community School

“Auditor says Ohio charter school misspent $578,000.” Associated Press, Lancaster Eagle Gazette (OH), 3/24/2012

CLEVELAND -- Ohio Auditor Dave Yost said the operators of a Cleveland charter school that closed in 2010 misspent about $578,000 that should be repaid to the state.

The Plain Dealer reported the state audit released Thursday alleged Greater Achievement Community School Superintendent Elijah Scott deposited at least $46,000 in public money into a personal bank account from 2003 to 2010.

It also said about $126,000 was spent on OnStar service, dry cleaning, videos, lodging and other questioned items and that Scott authorized $187 for alcohol with meals.

Investigators could find no documentation of the purpose of about $229,000 in additional withdrawals.

Findings have been forwarded to the Cuyahoga County prosecutor.

A message seeking comment from Scott was left before business hours Friday at the charter school he currently heads.

Academy of Learning and Academy of Design and Technology

“Charter school with troubled past wants to open in Norton.” Beacon Journal (OH), 1/8/2012 

A charter school is trying to open in Norton and compete with Norton City Schools for its students and state money, even though the district is rated excellent and generally should be off-limits to charter schools opening within its borders.

The school for grades K-4 calls itself the Academy of Learning and first appeared under that name in Doylestown last fall.

The Academy of Learning appears to have enrolled about a dozen children whose parents withdrew them from the excellent-rated Chippewa school district and told district officials the children would be home-schooled...

The Academy of Learning spent much of the past year looking for a new home when its original sponsor, Liberty Local Schools near Youngstown, severed ties last year because of the charter school’s “dysfunctional organizational structure” and failure to maintain financial records required for a state audit...

On Feb. 7, 2011, Ohio Auditor Dave Yost wrote a letter to Obermiyer and Liberty Superintendent Stan Watson informing them that the condition of records the district provided for an audit of the 2009-10 school year were not adequate and the district was now considered “unauditable.” Missing documents included “bank reconciliations for the entire period” and “bank statements for July and August 2010.”...

On May 26, Yost declared Liberty Local Schools to be in fiscal watch...

Meanwhile, Carlile and Obermiyer had already launched a quest to keep the charter school going in some form...

They approached North Central Educational Service Center in Tiffin, southeast of Toledo, in the spring.

In May, the North Central ESC passed resolutions approving the hire of Carlile and Obermiyer and the sponsorship of a new conversion school to be called Just for Kids in Doylestown...

But before formal contracts were presented to the board for approval, Lahoski discovered the problems that Liberty had with the state auditor. He said neither Carlile nor Obermiyer had said anything about the financial situation at Liberty during their many conversations...

“Liberty informed us that it was non-renewing and terminating the two schools’ contracts. So based upon that, we notified all the relevant offices that funding should cease with the end of the fiscal year and that’s what happened, ” said Joni Hoffman, who directs the state office overseeing charter schools. “That’s when it started to get very confusing...

However, the Portage County ESC issued a notice on Sept. 30 that it intended to suspend its sponsorship for “failure to provide learning opportunities in a manner consistent with law” and because the school had enrolled fewer than 25 students and was using an “unauthorized facility.”

The building issue was discovered by the Chippewa Township fire chief when he responded to a squad call at the J.A.S. Building and discovered a school in operation. But the building hadn’t been approved for a school...

The Academy of Learning has never officially changed its name, so as far as Portage County ESC and the state are concerned, it’s still the LEARN school. Its sponsorship is suspended, which means it can receive no state or federal funding. It has no official students...

East End Community Heritage School

“A school reform experiment that went on too long.” Cincinnati.com (OH), 10/16/2011

In 2000, the East End Community Heritage School, a charter school, opened with 186 students and a promise to better educate children with Appalachian roots and keep them in school to graduation.

In fact, its contract said 85 percent of students would pass Ohio proficiency tests within three years, a rate to rival top suburban schools...

Three years later, it was in Academic Emergency. Its achievement was so low by 2006 that CPS dropped out as sponsor. By 2010 - with 99 students - it was put on a "watch list" by the state.

Last week, the state named it one of 15 charter schools that must raise its scores or close by 2013.

How could such poor performance go on for so long?

Incredibly, the school may have survived because of its lack of success.

The state says charters must close if they've been in academic emergency for at least two of the three most recent years. But if schools have fewer than 10 students in a grade, the state doesn't include their composite scores on the state report card - or give the school a ranking.

That's what happened to EECHS in 2009 and 2010.

Even though it was in Academic Emergency in 2007 and 2008, the school managed to stay open apparently because it drew so few children, despite more than a decade of poor results...

The most expensive part is that for 11 years taxpayers have poured money into a school that performed worse than the public schools it was created to help "reform." Every other CPS school in Bond Hill, where the school relocated in 2006, has a higher state ranking.

Meanwhile, the school at one point was more than $300,000 in debt, which it has whittled down to $80,000 now...

In 2009, as EECHS hit other milestones of having the lowest percentage of highly qualified teachers in the region and a 10 percent graduation rate, an Ohio Department of Education spokesman assured taxpayers, "We're not going to continue pumping money into failing charters. If we can see the writing on the wall ... (we try) to stop the bleeding and give those students an option of going somewhere else."

But EECHS bled on...

But EECHS's story is not over, and it would be an oversight not to point out that the school - finally - might face its best chance for success.

Former CPS superintendent Michael Brandt, hired by the school's board of directors as a consultant, is overseeing a major overhaul of the curriculum, staff and daily operations at the school and has brought in former Hillcrest Training School Superintendent William Hamilton as principal.

They've replaced more than half the staff, increased the school day to 8 a.m. to 5 p.m., introduced a new college-readiness curriculum, and won a $360,000 state improvement grant and $61,000 Race to the Top federal grant for improvement.

The turnaround would be good news, but 11 years overdue...

Eagle Heights Academy

“Auditor: 'Extensive mismanagement' at Eagle Heights Academy.” The Vindicator (OH), 5/11/10

The Ohio auditor’s office found “extensive mismanagement” at Eagle Heights Academy, Youngstown’s largest charter school, including the failure of the school to pay more than $450,000 in federal taxes.

The audit, released today, also shows the school illegally paid $33,900 to 29 of its employees from a federal grant.

The auditor’s office provided the IRS with information about Eagle Heights’ failure to pay $333,722.34 in federal income tax withholdings and $120,658.92 in Medicare withholdings.

The audit found $707,507 in questionable costs or errors that caused costs to be overstated or understated on federal reports.

“The lack of proper financial oversight at this school allowed for the misspending of tax dollars intended to educate Ohio’s school children,” said Auditor Mary Taylor.

The state Department of Education has ordered the school at 1833 Market St. on the city’s South Side to close by June because it received a rating of academic emergency on each of its last two annual state report cards. An effort is being made to open another charter school at the same location.

Legacy Academy For Leaders and the Arts

"No Documentation of Financial Transactions Leads to More than $350,000 in Findings for Recovery: Special Audit of the Legacy Academy for Leaders and the Arts." Released Press Release – Ohio Auditor of State 7/7/11

Columbus - A charter school treasurer received $233,923 with no justification – and in many instances, only the treasurer signed the checks payable to himself or he signed the name of the school business manager without apparent authority.

Carl Shye was treasurer of the Legacy Academy for Leaders and the Arts during the time period reviewed by a special audit released today by Auditor of State Dave Yost.  Virtually no documentation of more than 100 financial transactions at the school led to a total of $352,062 in findings for recovery.

I’ve seen better documentation at a lemonade stand,” Auditor Yost said. “Schools must be able to account for every dollar spent.”

The academy issued 90 checks to former school treasurer Carl Shye totaling $483,923 for monthly treasurer fees, loan repayment, software licenses, compilation services, IRS audit meetings and audit preparation services.  Shye was given credit for $250,000 for the services he provided to the academy during the audit period; however, neither the academy nor Shye could provide contracts, loan agreements, bills, invoices or any valid documentation to confirm the amounts paid.  Also during the audit period, Shye signed his own name and Business Manager Edward Bolling’s name for a combined 73 of the 90 checks issued to him.  No evidence of authorization for Shye to sign on behalf of Bolling was brought forth.  Therefore, Shye was issued findings for recovery in the amount of $233,923 in favor of the academy.

The academy entered into a lease agreement with the Mt. Calvary Pentecostal Church.  Four checks to the church totaling $15,965 did not have documentation to support any expenditure, and the payments did not appear to be a rent payment.  An additional 24 checks were issued by the academy for expenses that should have been paid for by Mt. Calvary Pentecostal Church for a total of $50,374.  Findings for recovery were issued against Mt. Calvary Pentecostal Church in the amount of $66,339 in favor of the Legacy Academy for Leaders and the Arts.

The academy issued four checks to CBC, LLC totaling $6,000 with no documentation of the expenditure.  These payments were mailed to the home address of and were endorsed by Gary Brantley, husband of an academy employee and nephew of board member C. Wayne Brantley.  Findings for recovery were issued against CBC, LLC in the total amount and this issue was referred to the Ohio Ethics Commission for further review.

Three other instances occurred where undocumented expenditures led to findings for recovery.  Michelle Nazarovech was issued $24,500 in findings for recovery for lack of evidence of a contract for any services provided to the academy.  Edward Bolling was issued $1,500 in findings for recovery for no evidence of “accounting assistance” or any additional services to the academy.  The George Washington Carver Academy was issued $19,800 for two checks lacking documentation.  At the time of the transactions, Carl Shye was treasurer of both schools.

This special audit reviewing financial records for the period of July 1, 2005 through June 30, 2010 was initiated after auditors found numerous unsupported expenditures, unusual bank activity, many related party transactions and expenditures not for academy operations.  This activity warranted a deeper, special audit.

The results of this special audit will be forwarded to the Mahoning County prosecutor.

A full copy of this special audit can be found online.

Summit Academy - Columbus

“Breast milk sprayer fired from teaching job.” The Columbus Dispatch (OH) 7/1/11

The woman who sprayed Delaware County sheriff's deputies with breast milk while resisting arrest last weekend has been fired from her teaching job, according to documents obtained by The Dispatch today after a public-records request.

Stephanie Robinette, 30, of Westerville, had been a teacher at Summit Academy on Columbus' East Side. A letter in her personal file dated Wednesday states that she was terminated "as a result of recent developments." The school informed the state board of education yesterday that she had been fired for engaging in "conduct unbecoming" the profession...

She pleaded not guilty on Monday to charges of domestic violence, assault, obstructing official business, resisting arrest and disorderly conduct, all misdemeanors, in Delaware County Municipal Court...

Providence Academy for Student Success AKA Renaissance Academy - A School for the Multi-Media Arts

“Former charter-school leader must repay $10,000.” The Columbus Dispatch (OH) 29 Jun 2011 

A gospel singer who helped start a Columbus charter school misused more than $10,000 in taxpayer money and has been told to repay it, a state audit says.

Michael Stuckey, the former project manager at the Providence Academy for Student Success, wrote himself eight checks totaling $2,084 for "vending services," the audit released yesterday said.

He also endorsed $8,750 in checks from a day-care center that leased part of the P.A.S.S. building off of S. Hamilton Road on the East Side. The audit says there weren't proper, board-approved contracts for vending or the day-care lease...

The school opened for the 2009-10 school year. It attracted attention at the end of that year because its founder, Isaac Simpson, who also is a gospel singer, had built a $22,000 recording studio in the school with public money. One of the school's features was to be a music recording and engineering curriculum, but former school employees have said students were rarely, if ever, allowed to use the studio.

Simpson's gospel group became so entwined with the school that the treasurer said he could not be certain whether public money was being spent to launch records and hold concerts. The state audit did not list other instances of illegal spending.

At the end of its first year of operation, the school board voted to end its relationship with Simpson and Stuckey. A new director who had experience running a charter school was hired...

In March, the school board voted to change the school's name to the Renaissance Academy - A School for the Multi-Media Arts.

Vanguard Charter School Academy

NEW CHARTER SCHOOL FACES CRITICISM OF ITS CURRICULUM. Business Courier (Cincinnati, OH) 21 July 2003

Cincinnati's newest charter school will be managed by a national for-profit company that has faced lawsuits for allowing religious instruction and denying services to special education students.

Grand Rapids, Mich.-based National Heritage Academies will manage Alliance Academy in Evanston, which is renting the former St. Mark's Catholic School and will open in late August…

In 1998, the American Civil Liberties Union filed a suit on behalf of parents who alleged that NHA was violating the separation of church and state at its Vanguard Charter Academy in Grand Rapids. The suit was dismissed in 2000 after the school put policies in place to prevent the types of actions alleged…

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ACLU OF MICHIGAN CHALLENGES CHARTER SCHOOL FOR CHURCH-STATE VIOLATIONS. ACLU news release 01 Apr 1999 

DETROIT -- Acting on behalf of five parents, the American Civil Liberties Union of Michigan today challenged a Kent County charter school for violating the First Amendment's protections of separation of church and state.

Vanguard Charter School Academy sanctioned prayer in the school, allowed the distribution of religious materials during class, allowed a nearby church to use its facilities rent-free to conduct worship, conducted a mandatory staff retreat with distinct religious overtones and taught creationism as an accepted scientific theory, according to the amended complaint filed today in United States District Court.

Vanguard Charter School Academy teaches children from kindergarten through seventh grade. Like all other charter schools in Michigan, Vanguard is a public school and must follow Michigan's code for public school academies. It is managed by National Heritage Academy, one of the largest management companies in Michigan.

The ACLU is suing on behalf of five parents of students at the school…

Richard Allen Schools-Salem Avenue campus

This school is one of five schools operated by Richard Allen Schools, currently under investigation by Ohio state auditors. Read about that HERE. 

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FORMER KINDERGARTEN TEACHER HELD ON SEX COUNT; Dayton Daily News (OH) 09 Jan 2007

KETTERING — Parents of children who attend the Salem Avenue campus of the Richard Allen Schools will be receiving a mailed letter soon that will address the charter school's response to Friday's arrest of a former kindergarten teacher on a sex-related charge.

Steven Keller, 30, of 5710 W. Coach Drive, was arraigned Monday in Municipal Court on one count of gross sexual imposition against a 7-year-old girl.

Keller, who resigned from the school during Christmas break from classes, taught kindergarten at the Edgemont campus from 2000 to 2005 before going to the Salem Avenue campus, according to Mike McCormick, superintendent of Richard Allen Schools…

Keller was arrested in his apartment, where police said the assault occurred when the girl was staying there with her parents' knowledge. Police also believe Keller met the girl's family through his profession and was considered to be a friend of her family, Torok said…

Ohio charter schools (inadequate oversight)

CHARTER BACKER SAYS HOUSE PROPOSAL WEAKENS OVERSIGHT; April 30, 2011; Columbus Dispatch (OH) 

A leading school-choice supporter says the sweeping changes proposed by House Republicans would weaken oversight of charter schools severely and threaten to turn Ohio into a "laughingstock of the nation's charter-school programs."

"It's hard for me to say that," said Terry Ryan, vice president of Ohio programs and policy for the Thomas B. Fordham Institute, which sponsors seven charter schools in the state, including two in Columbus.

"It's basically saying the operators should be left alone and should be able to open as many schools as they want, and there shouldn't be any accountability but the market. We believe that's not enough."

As part of their changes to Gov. John Kasich's $55.5 billion budget, which got another full hearing yesterday, House Republicans would boost the power of for-profit charter-school operators at the expense of charter-school sponsors, who are tasked with oversight of the schools…

Electronic Classroom of Tomorrow

STATE QUESTIONS ATTENDANCE RATES AT INTERNET CHARTER SCHOOLS; Sept. 23, 2006; Associated Press, via Akron Beacon Journal (OH) 

COLUMBUS, Ohio - Attendance has been so good at some of Ohio's Internet charter schools that the state is wondering if the numbers are too good to be true.

The Ohio Department of Education plans to give attendance figures a second look after 20 of the schools - state-funded public schools where students do work online from home or other sites - reported perfect attendance for the last school year. Others had rates that were nearly perfect.

At least two schools, including Ohio's biggest, admit that they don't count students expelled for being absent for at least 21 days.

"This sounds like just another way that charter schools are gaming the system," said Lisa Zellner, spokeswoman for the Ohio Federation of Teachers. "What does this do for the student? The point is to be educating these kids, giving them what they need."…

The state's largest Internet charter school, the 6,664-student Electronic Classroom of Tomorrow, has reported perfect attendance for the past three school years…

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ONLINE SCHOOLS UNDER SCRUTINY; May 3, 2002; Wired 

More than 30 publicly funded virtual charter schools have launched during the past five years, and parents have largely been pleased with the results.

But the alleged mismanagement of two academies run by for-profit companies is prompting states to request more regulatory authority.

Educators say the Electronic Classroom of Tomorrow (ECOT) in Ohio and Einstein Academy in Pennsylvania, both of which are run by private companies, have ignored numerous academic guidelines while operating with questionable accounting practices…

[Ohio Federation of Teachers] president Tom Mooney said ECOT is "really being run by Bozo and Clarabell," claiming that management company Altair Learning Management had no background in education or technology. However, Mooney said they were "shrewd enough to smell a really good opportunity."…

The audit, which was released in April, showed that the company overcharged the state by $1.65 million for teaching hours it could not substantiate, and that $500,000 worth of computer equipment given to students who left the program were not recovered.

The auditor's office said ECOT's net loss of $3.8 million during the school year "causes substantial doubt about its ability to continue as a going concern."

ECOT recently agreed to pay back $1.6 million to Ohio's department of education over the next three years. ECOT superintendent Jeffrey P. Forster, who saw 30 percent of his students leave the program during its first year, said that because of cost cutting, the academy is on solid financial footing…

The federation also cites a recent charter granted directly to Akron "industrialist" David Brennan's White Hat Management company instead of to a nonprofit as required by state law.

Mooney said that when legislators passed the charter school law, they never envisioned cyber schools and "did not set up appropriate guidelines for oversight."…