The San Diego teachers union plans to fight the firing of a teacher who spearheaded union efforts at Tubman Village Charter School, where teachers became unionized nearly a year ago.The battle is an unusual one because while Tubman is unionized, its teachers have yet to hammer out a contract. That leaves them in labor limbo…
Teachers at a Chicago charter school are now subject to private-sector labor laws, rather than state laws governing public workers. The move could impact how public schools are run down the road.The ruling, made by the National Labor Relations Board last month, said the Chicago Math and Science Academy is a “private entity” and therefore covered under the federal law governing the private sector.The decision overrules a vote taken by teachers last year to form a union in accordance with the Illinois Educational Labor Relations Act. At the time, two-thirds of teachers at the school approved the union and it became official under state law...
The Chicago Math and Science Academy (CMSA), a public charter school, fired a highly regarded pregnant teacher who helped organize a union at the school in June. The firing occurred as the school also challenged its teachers’ right to form a union.The teacher, Rhonda Hartwell, was eight months pregnant at the time of her firing and was forced to move up her scheduled delivery to ensure it occurred before her health insurance was cut off.“It’s one thing for the school to fight the union’s legitimacy, but it’s quite another to retaliate against a union organizer who has been rewarded with performance bonuses and was pregnant. This is about as low as an anti-union administration can go,” said Kim Bobo, executive director of Interfaith Worker Justice.Hartwell had just received a $1,500 performance bonus, and the school had renewed her contract in April, inviting her to come back to teach this fall. Attorneys for the union filed an unfair labor practice charge against the employer…Two-thirds of the teaching staff—well over the majority required by law—signed union authorization cards to be represented by the Chicago Alliance of Charter Teachers and Staff (Chicago ACTS), an affiliate of the Illinois Federation of Teachers and the American Federation of Teachers. Chicago ACTS also represents teachers at eight other charter schools in Chicago.
Teachers and their supporters—which include local community groups, and religious, labor and political leaders—have vowed to fight what they say is a total disregard for the law by school officials…The school cited budget reasons for terminating Hartwell, but she and her colleagues are not buying it. They assert that CMSA is hiring new teachers, and a few days before the union organized, CMSA offered all teachers a 5 percent pay raise…
A top Chicago charter school has done great things for students, but won't recognize strong teacher support for a union...
Until last year, I only vaguely knew about the school because one of my choir members, who spoke highly of the school and its teachers, attended and graduated in its 2010 class, which had a college acceptance rate of 100 percent. But the school loomed larger when it moved from its original location to a spot about one block from my house.
Although I had been inside the school once, I had never met its leadership or teachers. Nor did I know much about its philosophy. I just knew it was doing a good job. The academy, as its website touts, is one of the top three charter schools in Chicago. It’s clearly doing something right for the students and their families. But there is some weirdness here…
What neither the Concept Schools nor the Chicago Math and Science Academy websites mention is that most of the leadership is part of something called the Gulen Movement. Despite my many years of interfaith work, I was not familiar with the Gulen Movement, although what I have read about it impresses me. But there is something weird about a charter school being so closely linked to a philosophy, the Gulen Movement, that isn’t even mentioned or referred to on its website.
When I went to the school’s board meeting on July 8, I was taken aback to see a board of directors comprised entirely of men. They all appeared of Turkish, Bosnian or Croatian descent. Although I have nothing against Turkish, Bosnian or Croatian men, it does seem that a school board serving students who are 58 percent Hispanic/Latino, 25 percent African American, 12 percent Asian and 5 percent white might be well served by some women board members and board members from ethnic backgrounds the school predominantly serves.
And now for what really worries me: In the winter of 2010, the teachers began to organize a union. They were concerned about staff turnover, which they believe is related to frustrations about having little input into decisions affecting their work and teaching. They were eager to help the school’s leadership grapple with issues around budgeting, staffing and turnover. The teachers believed that the best way for them to have the input they needed and affect the direction of the school was to organize a union.
So the teachers contacted Chicago Alliance of Charter Teachers and Staff (Chicago ACTS), a local union of charter school teachers and staff members affiliated with the Illinois Federation of Teachers (AFT). Two-thirds of the teachers signed union authorization cards, clearly indicating strong teacher support for having a union.
On the afternoon of June 23, the teachers announced to Principal Ali Yilmaz that they were forming a union. But right before they marched into his office to deliver the message, Yilmaz, apparently tipped off about the event, fired Rhonda Hartwell…
Chicago Math and Science Academy has hired Seyfarth Shaw, a notoriously expensive union-busting law firm, to advise it in dealing with the union. Anyone who has experience in labor issues in Chicago knows the anti-union reputation of Seyfarth Shaw. It is sad that a school facing budget cuts would waste resources in hiring a law firm to help it fight having a union. But that is exactly what is happening……On July 29, Chicago Math and Science Academy filed a petition with the National Labor Relations Board claiming it should be covered by the NLRB and not the Illinois Educational Labor Relations Board. This switch would mean that the school would not have to recognize the union, but would rather be able to insist on a board certified election. The principal told a community delegation I led on August 5 that he now believes the union wouldn’t have as many supporters with all the laid-off teachers. I’m sure he didn’t mean to imply that he laid off union supporters – but it sure sounded like it!
Compounding the ugly is the blatantly anti-union letter Yilmaz sent to parents. It is written in classic anti-union code – probably scripted by Seyfarth Shaw’s high-paid attorneys…
Join Arise Chicago, Chicago ACTS, and teachers from north-side Chicago Math and Science and Academy (CMSA) in taking action to recognize their union!
- Today, Thursday, Nov. 11
- 5:00 PM: Meet at Citizen Action Illinois, 27 E. Monroe, for pizza and to discuss the teachers’ situation.
- 5:45 PM: Walk down one block to 76 E. Monroe (University Club of Chicago) to leaflet dinner guests (at a Niagara
Foundation dinner – see below), hold a prayer vigil outside, and send a delegation inside with a letter requesting a meeting and action.
Because of the work of Arise Chicago, Chicago ACTS, and all of you who pledged your support, the teachers at Chicago Math and Science Academy (CMSA) are on a path to resolving the conflict with the school. Therefore, we are suspending tomorrow’s scheduled vigil aimed at the International Gulen Conference, sponsored by the Niagara Foundation.Acknowledging the widespread community support, the Foundation has responded positively and affirmatively to what the union requested. Foundation leaders wrote a letter to the CMSA Board of Directors repudiating the school’s refusal to accept the NLRB ruling favoring union rights for teachers. But the letter went further and invoked Niagara Foundation's own principles of promoting dialogue, civic engagement, human dignity and workers’ rights. It cited these principles in embracing fully the right of CMSA teachers to unionize!Foundation President Dr. Bulent Aydogan emphatically called on CMSA to:
- Withdraw the NLRB appeal,
- Recognize the teachers’ union,
- Negotiate with teachers, community leaders and union leadership to resolve all outstanding issues.
As a result, Concept Schools Inc., which operates CMSA, has agreed to meet with teachers, union and community leaders next week. This is an exciting step toward victory for these teachers! It is the sustained support and solidarity of our community allies that makes such victories possible. Thank you to all who pledged to attend the vigil and support these courageous teachers!
A highly regarded public charter school in Chicago has leveled a series of union-busting tactics at its teachers this fall—which has been met by a community-union partnership that’s fought back…The school is run by Concept Schools, which operates 24 other charters in the Midwest. Concept Schools is a participant in the Gülen Movement, an international, interfaith educational movement of “understanding and respect” that comes from Turkey.But considering the progressive politics of the area, and the supposed philosophy of the school, teachers and community members were disappointed when the teachers found neither understanding nor respect when it came to their decision to organize.When the CMSA teachers decided to begin organizing, they contacted the Chicago Alliance of Charter Teachers and Staff. Chicago ACTS is a joint program of the Chicago Teachers Union and the state and national American Federation of Teachers. CMSA teachers and Chicago ACTS began meeting, often using nearby space at Arise Chicago, a local interfaith workers’ rights organization……When they approached the principal with a request to recognize their union, CMSA fired one of the lead organizing teachers (claiming budgetary reasons) and later filed a petition with the National Labor Relations Board, arguing that the teachers should not be able to unionize because the school was not a public employer (even though the school’s own website lists CMSA as a “public charter school”).The NLRB rejected CMSA’s claim, ruling that the school was clearly part of the public education system, meaning its teachers and staff are public employees, who have the right to unionize. Once the Illinois Educational Labor Relations Board certified the union, Chicago ACTS would be able to begin collective bargaining. Or so it seemed.School administrators filed an appeal, and community partners stepped up their support for the teachers.When Chicago ACTS learned that the Gülen movement was having its international conference in Chicago, teachers began strategizing how to boost their campaign. The conference was being supported by several sponsors—including the Niagara Foundation, which supports the Gülen movement.Chicago ACTS asked Arise Chicago to support a prayer vigil and action outside the conference’s opening event on November 11. Arise Chicago activated its network to turn out supporters…Now, Concept Schools will meet with teachers and union and community leaders during the week of November 15. The vigil was called off, as the sustained support of community allies brought victory one step closer.
CHICAGO - If Sulejman Dizdarevic were peeking out the window of his swanky law offices on Feb. 11, he surely would have been startled. There staring at him from the opposite side of the street, with bulging eyes, long nose and whiskers, chomping on a cigar and holding sacks of cash, was a giant, ugly rat.The inflatable rat was erected by supporters of teachers at Chicago Mathematics and Science Academy in front of Dizdarevic's office, because he sits on the board of directors of the charter school that they accuse of subverting teacher's rights to form a union and violating Illinois labor law by refusing to negotiate a contract. Dizdarevic is an attorney at Belongia, Shapiro and Franklin."Regardless of the anti-union reasons motivating these charters, we are finding fear of transparency is the key issue," said James Thindwa, an organizer for Chicago ACTS, which is affiliated with the American Federation of Teachers and now represents teachers at eight charter schools."In almost every case, we have discovered that schools have more money than they claim. Teachers at Civitas were told there was no money for a raise, but when an audit was done, $2.5 million was found lying around," said Thindwa…"CMSA are saying this is a private school, not subject to state law," said Thindwa. "They walked away from the bargaining table despite the fact that this union is certified under state law. What CMSA is saying is they don't recognize the state."Charter schools are covered under Illinois Educational Labor Relations Board and employees are required to get the support of 50 percent plus one to gain union recognition. CMSA refused to accept this and took their case to the National Labor Relations Board, claiming they were a private company not covered under the law…Thindwa said every board member of CMSA would be targeted for pressure because they were personally responsible for the downward spiral the school finds itself in. They started with Dizdarevic; a delegation of community, clergy and academics delivered a letter to his office demanding management comply with state law."We told him we are not going away," said Martha Biondi, a professor at Northwestern University. "We are community members concerned about the right of teachers to organize a union, especially under the law of Illinois. It's outrageous that they are flouting the law of Illinois."…
Tensions are heating up at a North Side charter school where teachers have formed a union. About two-thirds of the teachers and staff at the Chicago Math and Science Academy signed union cards last school year. Art teacher Kate Ostler, who’s taught at the school for three years, was among them. She said her hope is that a union will improve working conditions for teachers and learning for kids.
“I didn’t like the climate of the school every year when it came to going in there on my own to talk to a principal who it seemed was very hostile to any kind of improvements that I wanted in my working conditions—improvements that would certainly benefit the learning conditions of my kids,” said Ostler.But Chicago Math and Science Academy has not recognized the teachers’ union.
At issue is whether a charter school is a public or private entity. The schools are publicly funded but privately run. Under state law covering public schools, the union is official. But the school wants to follow federal labor law governing private entities. That would force teachers to hold a vote on whether to unionize—and not all teachers are in support…The little school’s pending case before the National Labor Relations Board is a big deal: The country’s two biggest teacher unions, the National Alliance for Public Charter Schools, and Nevada’s attorney general have all filed briefs in the case.
A decision, which may not come for months, could help determine how union issues in other charter schools around the country are handled.
CHICAGO—The Chicago Math and Science Academy, a public charter school, has agreed to a $40,000 back-pay settlement to a highly regarded teacher who was fired in June after she helped organize a union at the school…“CMSA is adamantly opposed to the union organizing effort and used this teacher as a scapegoat. Its scheme to use an anti-union scare tactic backfired—CMSA teachers want a union more than ever to have a voice in working and learning conditions without fear of reprisal,” said Dan Montgomery, president of the Illinois Federation of Teachers. “This case illustrates clearly just why having a union is so critical.”Since the teachers filed for representation, CMSA has spent over $113,000 of taxpayers’ money in legal fees to fight the union…The school continues to claim its teachers are private employees subject to the National Labor Relations Act. The National Labor Relations Board is expected to rule on the matter soon…
…From what I can gather, the American teachers simply want to have an equal say and equal treatment. I believe that they are tired of having to carry the educational burden of the Turkish staff. Again I assume this is the case within other Gulen schools, the American teachers at CMSA are required to carry a full load while the Turkish staff are permitted to have fewer classes with fewer students. The American teachers are further required to put in more hours, while the Turkish staff are permitted to leave or choose rather not to spend extra time with the students at school. Lastly, the teachers are tired of having the administration dictate what is best in the classroom…
Based on my experience with Gulenists, they [the teachers] are premature in declaring victory. All the school has done is agreed to meet with them.
I have also attended meetings with Gulenists, so I know how they go. They talk and talk. At the end of it, they do what they wanted to do all along.
The Gulenists made this conciliatory gesture to avoid the embarrassment of the vigil in front of the conference, which would have been very damaging for them. Having got what they needed, they won't want to concede any more.
The teachers are going to be very disappointed.
…Their entire modus operandi is based on abusing teachers. I hope to be proved wrong, but my belief is that they will never give in on this one.
Instead, they will offer the teachers some meaningless concession, which they will then retract in a couple of months anyway…
Illinois' largest teacher's union has filed a charge against the Cambridge Lakes Charter School for a Feb. 25 meeting at which the union claims the school violated teachers' right to organize.
The charge alleges charter-school officials "interfered with, restrained and coerced its employees in the exercise of rights guaranteed under the (Illinois Educational Labor Relations Act)" at the Feb. 25 staff-wide meeting.
The Illinois Education Association is seeking an injunction to stop Northern Kane Educational Corp., the firm that runs the charter school, from continuing the alleged anti-union activities.
Northern Kane Executive Director Larry Fuhrer would neither confirm nor deny the allegations on Wednesday.
"I have no comment on that," he said.
At the Feb. 25 meeting, teachers were asked if they had been involved in "recently publicized acts against the interests of Northern Kane Educational Corp.," the nonprofit organization that runs the school, according to a document handed to teachers at that meeting.
Just one day earlier, the Daily Herald reported that charter- school teachers were trying to form a union.
The document, obtained by the Daily Herald, asked teachers to repudiate union activities or confess and face undefined consequences.
The Illinois Education Association's March 14 charge aims to stop Northern Kane from using or retaining the documents, which employees were to sign and return at the Feb. 25 meeting.
At a recent Northern Kane board meeting, board President Jerry Conrad said the Feb. 25 document was not brought to the board before it was given to teachers.
Conrad, who is also the vice president of Cambridge Homes, said he would ask for a legal opinion on the document from Northern Kane's legal counsel.
If the Illinois Education Association is successful in getting an injunction against Northern Kane, the firm would be barred from anti-union activities until the merits of the complaint are decided.
The Illinois Education Association also seeks compensation for teachers who have "suffered any loss as a result of the employer's conduct."
Tom Wermers, a former teacher who worked to form a union, says his contract was not renewed for next year and that other teachers who were involved in union efforts faced a similar fate.
Fuhrer would not answer questions about Wermers' employment Wednesday.
"No comment on anything with Tom Wermers," he said.
The Illinois Education Association is trying to represent teachers at the Pingree Grove charter school and has obtained enough signatures to hold a union election, a union official said.
"I have no knowledge of any such thing," Fuhrer said, declining further comment.
* * * * * *
CAMBRIDGE LAKES CHARTER SCHOOL BOARD LEADERSHIP CHANGES: TWO MEMBERS, INCLUDING CHAIRMAN, RESIGN POSTS FOR PINGREE GROVE SCHOOL, May 23, 2008, Daily Herald (Arlington Heights, IL)
Two members of the board that governs the Cambridge Lakes Charter School resigned Wednesday, including the chairman and one of five founding members that form a majority on the board.
And the board has named as its new chairman the executive director of the nonprofit group that runs the school and that has filed objections against an effort to unionize teachers at the school.
The resignations of Chairman Jerry Conrad and Bill Doran leave in doubt the continued influence of Cambridge Homes and Community Unit District 300 over the direction of the Pingree Grove school.
Conrad is senior vice president of Cambridge Homes, the builder that developed the charter school and the surrounding subdivision…
* * * * * *
DOES CHICAGO HAVE ITS FIRST UNIONIZED CHARTER SCHOOL…OR NOT? May 18, 2009, blogs.vocalo.org
A year ago, teachers at Cambridge Lakes Charter School in Kane County formed a union. Their employer, the Northern Kane Educational Corporation, also argued that the NLRB should have jurisdiction in the case, using the same private employer argument. But the state IELRB ruled otherwise. In a decision issued in November 2008, the IELRB determined that Northern Kane should indeed be considered a public employer subject to the state public educational employer act.
The school’s administration appealed the decision to the appellate court, which is where the case remains.
* * * * * *
A CHARTER SCHOOL OF YOUR OWN IS LATEST IN HOME AMENITIES, August 22, 2005, The Chicago Tribune
The standard subdivision amenities used to be Olympic-size swimming pools, golf courses and bike trails. But in a dramatic shift, a developer in Kane County proposes to lure home buyers with an $18 million charter school within easy walking distance.
Although Cambridge Homes' proposal is unique for a developer in Illinois, some Lake County residents opened a charter school in the Prairie Crossing subdivision in the late '90s. But unlike the Pingree Grove proposal, that school set up in an existing building, and the initial backing came from residents.
On Monday, Community Unit School District 300, based in Carpentersville, will discuss what could be the first charter school in Illinois built by a developer. School board members will consider whether to give the developer more time to answer their financial concerns about the school or possibly pass on the proposal.
Cambridge Homes, based in Libertyville, wants to build a school for about 1,000 pupils in kindergarten through 8th grade in its new subdivision near Pingree Grove in the northern part of the county.
The developer said the public school is part of a quality-of-life package that home buyers want, and future residents said it's an undeniable draw. But the plan, which state officials said is the first of its kind in Illinois, has drawn fire from some board members, who fear the school could divert dollars from other campuses in the district.
That could create disparities within school districts where charter schools are built in wealthier subdivisions, said Denise Cardinal, spokeswoman for the National Education Association, a Washington-based union that represents 2.7 million education workers.
"That's one of the things we object to in charter schools, is charter schools that drain taxpayer dollars from [other] publicly funded schools," Cardinal said.
The idea may be new in Illinois, but developers across the country are offering to build schools themselves rather than pay impact fees to the districts. The fees help offset the effect of development, including paying for new schools.
In about a dozen communities in Florida, California and other fast-growing states, developers are including charter schools in subdivision proposals.
"It is pretty unique, although not unheard of," said Greg Richmond, president of the National Association of Charter School Authorizers, a non-profit association that oversees the schools. "It does seem that it's a possible win-win situation for the school district and the developer."
In many of Chicago's suburbs, school districts cannot build schools fast enough to accommodate growth, said Richmond, formerly of the Renaissance 2010 project, Mayor Richard Daley's effort to turn around failing Chicago schools.
Driving the local proposal is the unrelenting pressure of suburban expansion in District 300, officials said.
Cambridge Homes views the charter school proposal as a solution that would enable families in its subdivision to send their children to a school within walking distance, said company Senior Vice President Jerry Conrad, who is part of the group overseeing the charter school…
The Kane County charter school may be built for pupils in the Cambridge Lakes subdivision, but state law requires the district to allow any student to attend.
The developer plans to build about 2,650 homes that cost $180,000 for a townhouse to $300,000 for a single-family home.
The district's developer impact fees are not enough to cover the cost of building new schools, and waiting for voters to approve bonds would force newcomers to bus their children to schools several miles away, Conrad said.
Impact fees in the Pingree Grove area typically are $3,000 per house. But Cambridge Homes cut a deal to pay only $975 per house, Crates said.
The developer wouldn't put up money for the school but is serving as a kind of facilitator for the project. Cambridge Homes is working with Northern Kane Educational Corp., which would oversee construction of the school and manage its finances. American Quality Schools, which runs several charter schools in Chicago, would hire the teachers and develop a curriculum…
A Philadelphia charter school fighting a unionizing effort is trying to break legal ground by contending that it is not a public school - even though it's funded entirely by taxpayers.The move by New Media Technology Charter School, which receives more than $5 million in public money annually to educate 450 students, is drawn from the playbook of a charter in Chicago that is part of a controversial network of Turkish-run charter schools.The Chicago Mathematics and Science Academy Charter School - one of 120 schools nationwide inspired by the teachings of Turkish imam Fethullah Gulen - asserted in papers filed with the National Labor Relations Board that it is not a public school or "a political subdivision" of the state of Illinois. If it prevails, it would be exempt from a state law that permits charter staff to unionize.The full NLRB has not ruled on the matter, though the school lost a preliminary round when the regional director ruled that it was a public school overseen by the Chicago school district...Several New Media teachers said they wanted to form a union to have a voice in the school's educational policies such as discipline and a lack of books and supplies without fear of reprisal. The teachers, who asked not to be named, described a school that has been "chaotically administered."New Media, which enrolls students from grades 5 through 12 on campuses in Germantown and Stenton, has had a turbulent history since its founding in 2004.Ina Walker, the former chief executive, and Hugh C. Clark, the former board president, were indicted by a federal grand jury in April and charged with stealing $522,000 in taxpayer funds partly to support a small private school they controlled, a health food restaurant, and a health food store...
Charter schools often balk at unionizing efforts, charging that negotiating contracts will erode the flexibility and experimentation upon which the schools were founded.Nevertheless, staff at several of Pennsylvania's 135 charters and 12 cyber charters have succeeded in unionizing. Five city charters are represented by affiliates of AFT Pennsylvania...
A federal grand jury has indicted two former top officials at a charter school in Northwest Philadelphia on charges of stealing $522,000 in taxpayer funds.The 27-count indictment charges Hugh C. Clark, 64, and Ina M. Walker, 58, with conspiracy, wire fraud, and theft from a federally funded program, U.S. Attorney Zane David Memeger announced Thursday.The pair, both from Philadelphia, allegedly used the money slated for New Media charter school to pay expenses at Lotus Academy, a small private school they controlled; to fund personal businesses, including the Black Olive health-food store and the Black Olive restaurant in Mount Airy; and for personal expenses, including meals and credit-card bills, Memeger said.The indictments, which were unsealed Thursday, came nearly two years after The Inquirer first reported allegations of fiscal mismanagement and conflicts of interest at the school, which has campuses in the Stenton and Germantown neighborhoods...New Media is the fourth Philadelphia charter school in recent years whose administrators or board members have faced federal fraud charges. And the school is among at least 18 area charter schools that have come under federal investigation since 2008, sources have said...
PHILADELPHIA—An indictment was unsealed today charging Hugh C. Clark and Ina M. Walker with conspiracy, wire fraud, and theft from a federally funded program based on their roles in defrauding the Philadelphia based New Media Technology Charter School ("New Media"), announced United States Attorney Zane David Memeger.The 27-count indictment charges that Clark, the former president of the board, and Walker, the former CEO, improperly used approximately $522,000 in New Media funds to enrich themselves and advance their personal interests. According to the charges, Clark and Walker stole from New Media, a charter school funded with federal tax dollars, to (a) pay expenses at a small private school they controlled, Lotus Academy (b) advance their personal business ventures, including the Black Olive health food store and the Black Olive restaurant, and (c) pay personal expenses. In addition, defendant Clark allegedly diverted substantial funds from New Media and Lotus Academy to benefit Tekhen, a web design and Internet access company he owned and controlled.The indictment charges that Clark and Walker diverted at least $309,000 in fraudulent payments directly to Lotus Academy, which were often disguised as prepaid rent or bogus security deposits. Once the funds were deposited into Lotus Academy bank accounts, the defendants allegedly spent the money on the expenses of their private school, and on their personal and business ventures.In addition, defendants Clark and Walker allegedly used approximately $213,000 of New Media's money to pay third parties for expenses for Lotus Academy, the Black Olive business ventures, Tekhen, and personal expenses. The indictment alleges that the defendants often disguised these payments by adding additional expenses to existing New Media expenses. For example, the indictment charges that Clark and Walker used New Media funds to hire and pay a contractor for the purpose of creating and preparing the Black Olive health food store for opening. Although the contractor had an office at the New Media middle school, the contractor did not teach students or have any legitimate function in the New Media middle school, it is alleged. Similarly, the indictment charges that defendant Clark hired a marketing contractor to provide marketing services to New Media, Lotus Academy, the Black Olive business ventures, and another restaurant in which Clark and Walker had an ownership interest. Clark and Walker allegedly paid the marketing contractor with New Media's funds.Further, the indictment charges that defendant Clark, without notice to or approval from the New Media board of directors, entered New Media into a written contact to purchase a school property for the sole purpose of benefitting Lotus Academy. Defendants Clark and Walker allegedly used $15,000 of New Media's funds as part of the $45,000 deposit for purchase of the school property. When the sale did not close and the $45,000 deposit was returned to Lotus Academy, defendants Clark and Walker never returned the $15,000 to New Media, it is alleged. Rather, Clark and Walker allegedly caused the entire $45,000 to be spent in various ways, including for Lotus Academy expenses (rent and payroll), payments to the Black Olive business ventures, and a cash deposit into defendant Walker's personal bank account to pay Walker's personal bills.It is alleged that Clark and Walker spent New Media funds on additional "joint" expenses with Lotus Academy, such as two annual awards banquets at a Philadelphia hotel, and two overnight staff retreats to Ocean City, Maryland. New Media allegedly covered all of these costs without reimbursement by Lotus Academy.The indictment alleges that Clark and Walker caused New Media to pay utility expenses for Lotus Academy and the Black Olive business ventures including a July, 2009 payment of $3,617.29 to PECO pay the overdue PECO bill for Black Olive health food store. It is also alleged that Clark spent New Media funds to pay two different vendors for Clark's personal business, Tekhen Communications. According to the indictment, defendant Clark caused New Media to pay a Tekhen vendor, Hivelocity Ventures, not just for web domains and services that Hivelocity provided to New Media, but also for web domains and services for Lotus Academy, Black Olive, Tekhen, and Hugh Clark's law firm, Clark and McGill. The indictment also alleges that defendant Clark caused New Media to pay a different Tekhen vendor, Dialup U.S.A., which provided no services to New Media. New Media was never reimbursed for these costs, it is alleged.According to the indictment, as a result of the improper and fraudulent payments directed by Clark and Walker, New Media failed to pay legitimate New Media expenses. For example, from December, 2007 through February, 2009, New Media failed to remit the required monthly employee withholdings and quarterly employer contributions to the Pennsylvania School Employees Retirement System. PSERS is the defined benefit retirement plan for public school employees of the Commonwealth of Pennsylvania. From October, 2006 through November, 2008, New Media carried a past-due balance with one of its primary textbook vendors, it is alleged. On several occasions, there were allegedly insufficient funds in New Media's bank account to cover employee payroll checks. According to the indictment, in Spring of 2009, coaches for New Media's athletic teams remained unpaid or partially paid.Information Regarding the Defendants
Aug. 16--What began as a complaint from a couple of moms more than 18 months ago has mushroomed into a widening federal investigation of at least five Philadelphia-area charter schools, calling into question spending controls and management oversight in this burgeoning alternative to traditional public schools.Federal authorities are adding resources to the probe, and people familiar with the matter say New Media Technology Charter School, which has campuses in the city's Stenton and Germantown neighborhoods, is the latest charter targeted for spending irregularities and conflicts of interest…More recently, federal investigators turned their attention to the New Media Technology Charter School amid allegations that school money had been used to pay some expenses of a private school, a restaurant, and a health-food store, according to sources with knowledge of the inquiry. All have ties to New Media's leadership…
