Career Success Schools (6 schools)

“Phoenix Schools Under Fire For Program Linked To Scientology.” NPR, 3/27/2013

A group of Phoenix charter schools is facing criticism for using a teaching tool based on the work of L. Ron Hubbard, best known for founding the Church of Scientology.

Teacher Katie Donahoe says that shortly after she was hired in 2010, she went to a memorable training session on the teaching method, called Applied Scholastics. The session was held at the Applied Scholastics headquarters near St. Louis...

Arizona charter schools (analysis finds insiders made $70M)

“Insiders benefiting in charter deals, Board members, school officials did more than $70mil in business.” The Arizona Republic, 11/17/2012 

Board members and administrators from more than a dozen state-funded charter schools are profiting from their affiliations by doing business with schools they oversee.

The deals, worth more than $70 million over the last five years, are legal, but critics of the arrangements say they can lead to conflicts of interest. Charter executives, on the other hand, say they are able to help the schools get better deals on services and goods ranging from air-conditioners to textbooks and thus save taxpayers money.

The Arizona Republic reviewed thousands of pages of federal tax returns, audits, corporate filings, and records filed with the Arizona State Board for Charter Schools. The analysis looked at the 50 largest non-profit charter schools in the state as well as schools with assets of more than $10 million. For-profit schools were not analyzed because their tax records are not public.

The Republic’s analysis found at least 17 contracts or arrangements, totaling more than $70 million over five years and involving about 40 school sites, in which money from the non-profit charter school went to for-profit or non-profit companies run by board members, executives or their relatives...

Primavera Technical Learning Center

“4 charter-school organizations where insiders benefited.” The Arizona Republic, 11/17/2012

... Damien Creamer and Vanessa Baviera Rudilla run one of the largest online schools in Arizona, and the non-profit school contracts with a for-profit company, American Virtual Academy, for its curriculum and software. Creamer and Rudilla are officers of the non-profit and earn salaries. American Virtual Academy also is owned by Creamer and Rudilla. From fiscal 2007 to 2011, the non-profit paid $42.3 million to American Virtual Academy. The non-profit is exempt from state purchasing laws...

Basis Schools (eight schools)

“Insiders benefiting in charter deals, Board members, school officials did more than $70mil in business.” The Arizona Republic, 11/17/2012

... Basis Inc. charter schools are nationally recognized for their rigorous curriculum.

The schools are the brainchild of Michael and Olga Block, who envisioned a college-prep curriculum that would rival the best countries. The first school opened in 1998 in Tucson. A second followed in 2003 in Scottsdale.

For years, the Blocks worked for and were paid by the non-profit schools. Michael was the chief operating officer and treasurer, Olga the chief executive officer.

The Blocks later formed a separate, for-profit company and in 2009 signed a service agreement with the non-profit that provides Basis’ six schools with most everything they need to operate: school directors, teachers, accounting, technology, human resources, public relations and Michael and Olga Block...

Basis Inc. denied a request from The Arizona Republic to review a copy of its agreement with the Blocks’ company.

The state also is limited in what it can find out about management companies. The state charter board can audit only the charter school, not the private company hired to run the school’s operations...

A few of the Blocks’ relatives also received money for work performed for the schools, including a relative who performed accounting services for the schools in the Czech Republic, as recently as fiscal 2009.

The tax returns no longer include these details because the Blocks work for the privately held company, not the non-profit. Michael Block said the company is a private business and declined to discuss salaries or whether family members are performing work for the schools...

Happy Valley School

“Insiders benefiting in charter deals, Board members, school officials did more than $70mil in business.” The Arizona Republic, 11/17/2012

... The Gaddie family reflects how family ties can run deep at charter schools.

Happy Valley School in Peoria has a three-member non-profit board made up entirely of Gaddie family members, according to the most recent federal tax return. Ernest Gaddie is president. His wife, Delite Gaddie, is secretary, and their son, Glen Gaddie, is a board member...

For several years, the school has contracted with Gaddie Curriculum & Education Consulting, a business owned by Ernest and Delite Gaddie. The company provides business consulting, maintenance and operations services and licenses curriculum to the school, according to tax returns and audits...

Desert Heights Charter School

“4 charter-school organizations where insiders benefited.” The Arizona Republic, 11/17/2012 

For several years, [Desert Heights Charter School] had an agreement with Waterhouse Management, owned by a board member of the non-profit school, Richard Waterhouse. From fiscal 2007 through 2011, the firm was paid at least $1 million, according to federal tax returns. In 2009 and again in 2010 and 2011, auditors questioned the transaction, saying the value of the agreement for contracted business services is “not supported by documentation that provides the method and/or rationale for how such fees for services were determined to be fair value.”..

... In August 2011, school-board minutes show the board removed Waterhouse as CEO and board member and terminated the business contract “for material breach of contract.”...

Career Success Schools

“4 charter-school organizations where insiders benefited.” The Arizona Republic, 11/17/2012 

Payments: For several years, the non-profit organization [Career Success Schools] has contracted with the company of a board member, Kevin Zirk, for its employee 401(k) plan, and Zirk receives commissions based on the deposits... In fiscal 2011 and 2010, the non-profit contracted with the company of another board member, Ditza BenShalom, for air-conditioning repairs totaling $154,241. In fiscal 2010, the non-profit also paid $1.3 million for land for a new school campus from a company that Zirk and two others owned.

 

Espiritu Schools

“4 charter-school organizations where insiders benefited.” The Arizona Republic, 11/17/2012

Payments: No other large charter school has as many transactions involving family members as Espiritu Schools in south Phoenix. Armando Ruiz is the founder and a board member for Espiritu, a non-profit that operates three schools on one property. He also is on the board of a separate non-profit, called the A Group, that gets paid by Espiritu to handle non-academic functions of the school such as technology, sports, parent involvement, bookkeeping and human resources. This allows educators to focus solely on academics, he said.

Ruiz’s schools also pay rent to a third non-profit, called Project America, that owns the land and whose president and board are made up of Ruiz’s brother, sister and nephew. That non-profit, in turn, donates a chunk of its money to a charity, Mary’s Ministries, founded by the Ruizes’ mother, Estella Ruiz, that trains community leaders to conduct spiritual workshops. Over the last five years, Espiritu has paid $615,624 in salaries to nine members of the Ruiz family who also served on the Espiritu board...

Mission Charter School

“A Fairly Strong Claim of Discrimination.” Courthouse News Service, 4/25/2012     

PHOENIX (CN) - A black, Jewish principal claims a charter school fired her after subjecting her to intolerable treatment: setting up a Holocaust exhibit outside her office, forcing her to walk past a swastika and "to go into the gas chamber in order to go into her office."

Millicient McNeil sued the Mission Charter School in Maricopa County Court.

She claims the school board ignored her complaints about the swastika in the hall, along with a photo of a lever used to drop chemicals into gas chambers, and the words "Majdanek Bad Und Desinfektion"-referring to the "bath and disinfection" gas chamber at the Majdanek concentration camp.

McNeil claims the school's conduct was "extreme and outrageous" and that it "either intended to cause emotional distress or recklessly disregarded the near certainty that such distress would result from the conduct."...

McNeil seeks $750,000 in general and compensatory damages, and $1.25 million in punitive damages, for breach of contract, wrongful termination, and negligent supervision, among other claims. She is represented by Lisa Aubuchon of Tempe.

The Scholars’ Academy (Arizona)

“Quartzsite school principal, secretary resign after caught making out during class.” ABC15, 4/27/2012   

QUARTZSITE, AZ - A piece of shocking cell phone video has turned an Arizona school into the talk of the town.

Students at Quartzsite’s Scholar’s Academy captured their principal kissing and fondling the school secretary. City officials say the video shows Principal Steve McClenning making out with Billie Madewell.

Numerous parents, students, and residents told ABC15 the two are both married to different people. What has parents most upset, however, is that the intimate kissing session happened during classes...

The charter school is not firing McClenning or Madewell. The two instead resigned in an impromptu meeting Wednesday. The resignations take effect June 30. Parents told ABC15 they want immediate and serious action.

“Dismiss them both,” mother Cindy Jones said. “It’s not OK, what they did. If they resign, that’s a privilege. They can go to another school and this will never be on their record. No. I don’t like that at all. That’s just telling the kids it’s okay.”..

With Scholar’s Academy’s charter status not being renewed, many in the town believe Quartzsite will not have a school next year. The school has appealed the decision to the Arizona State Board for Charter Schools...

Vicki A. Romero High School

“Financial records reveal school board spent public money on home furnishings.” 3/23/2012

PHOENIX - A Valley charter high school used public funds to pay for and fully furnish a residential home in a neighborhood less than a half a mile from the school.

According to financial documents supplied to the ABC15 Investigators by the Vicki A Romero High School , a Phoenix charter school, the school paid more than $48,681 for upgrades, repairs, and amenities before a salaried school employee moved into the home for several months...

According to Arizona’s new accountability letter-grade standards, the school currently has a “D” rating, demonstrating a below average level of performance.

In an effort to find out how the board was making decisions related to the state aid it receives, the ABC15 Investigators attended the school board’s public meetings and filed a June public records request for documents revealing how specific payments and reimbursements are made to and from employees...

The Carden School of Tucson

“2 charter schools struck by thefts.” Arizona Daily Star, 1/1/2012  

When charter school director Bette Jeppson sat down with an accountant last March, she expected to get a few tips on how the school could improve its bookkeeping and finances.

What she got instead was a litany of illegal transactions by the school's business manager that drained resources to the point the school was forced to cut back in educational spending, making it one of two Southern Arizona charter schools to come under investigation by the Arizona attorney general for financial improprieties.

For example, Jeppson didn't expect to learn business manager Keri Gall had given herself a 29 percent raise and was making 40 percent more than she herself was.

Or that the manager had used the school's credit cards to buy a $1,000 boxer, designer clothes, manicures, groceries and items used to remodel her home.

Jeppson was even more stunned to learn the manager hadn't been depositing money into teachers' IRAs and even forced one to pay her own health insurance...

Instead, Jeppson found out that morning Gall had been writing checks to herself and fixing the books, plus misusing the credit cards...

Originally charged with one count of fraud and four counts of theft, Gall pleaded guilty to one count of theft. She was also ordered to pay $150,280 in restitution at no less than $500 a month.

Authorities can prove Gall stole $128,000 between Jan. 1, 2007 and March 23, 2011; the K-8 school couldn't afford to dig back to her 2003 starting date...

Gall is not the only charter school employee to end up before a judge in recent months...[SEE entry for The Pima Partnership School]

The Pima Partnership School

“Former Tucson school principal given probation in theft case.” Arizona Daily Star, 10/13/2011

A former charter school principal was placed on three years probation and ordered to pay nearly $23,000 in restitution for attempted theft Thursday.

William Eddings Jr. was the principal at a charter school operated by the Pima Prevention Partnership when discrepancies were discovered during an audit by the Arizona Department of Education, according to court records.

The audit and subsequent investigation revealed that between June 16, 2006, and March 15, 2008, Eddings submitted inflated attendance records, awarded diplomas to 13 students who didn’t meet the state’s graduation requirements and signed invoices for services not provided to the school. Eddings received bonuses of $5,000 based on the information he provided.

Eddings was indicted in April on two counts of fraud and one count of theft; he pleaded guilty to attempted theft in August.

Under the terms of his plea agreement, Eddings could have received up to three years and nine months in prison.

On Thursday, Assistant Arizona Attorney General Michael Jette told Judge Howard Fell of Pima County Superior Court he is concerned Eddings has not accepted responsibility for his actions.

Eddings told a probation officer he didn’t do anything wrong and only pleaded guilty to end his legal problems.

In addition to the probationary sentence, Eddings was ordered to perform 300 hours of community service.

Eddings, who lives in Arizona City, hopes to have his probation transferred to Pinal County.

La Paloma Academy

“Molestation suit against principal cites text messages.” Arizona Daily Star, 8/16/2009

One text message sent to a teenager's cell phone asked, in effect: What can I do so what happened is never spoken about?

Another message said: I just want forgiveness, please.

The teen and a former teacher who saved copies of that text and other brief messages say they were sent by a school principal who was also pastor of the teen's church.

The former student alleges in a lawsuit that Randy S. Musgrove used his position as principal and pastor to sexually molest and harass her starting when she was 14. She told police he bought her a cell phone and offered cash to keep her from telling anyone, a police report says.

Musgrove denies the allegations and has not been charged with a crime. None of the 20 text messages that have surfaced in the case admit any sexual conduct.

Musgrove was pastor of Tucson's Hope Chapel, a church located at the Lakeside campus of La Paloma Academy, 8140 E. Golf Links Road. He has since moved to Phoenix and become principal of Liberty Traditional Charter School...

Musgrove could not be reached for comment. His Tucson attorney, Jack Redhair, did not return calls. But Robert Berk, the attorney representing La Paloma Academy in the suit, said Musgrove "vociferously and categorically" denies the allegations and that the school supports him in his defense.

The lawsuit alleges that the defendants, which also include La Paloma Academy, Hope Chapel and Musgrove's wife, who worked as a teacher's aide, knew or should have known the molestation was occurring and should have prevented it.

"The school's position is that if these allegations are true — if the sex molestation occurred — the school had no reason to believe it was occurring," Berk said.

Musgrove's relationship with the alleged victim when she was at La Paloma drew the attention of Shari Brown, who testified she found it inappropriate that he gave the teen rides in his car and paid for pizza, a pedicure and other things.

Brown spent nearly 20 years as a Tucson police officer. After she retired from law enforcement, she taught fourth grade for a year at the Lakeside campus, then got to know the alleged victim after leaving that job.

Around October or November of 2007, the young woman called Brown and revealed she'd been involved in "some stuff with a married man," the ex-detective testified in a deposition last April.

Brown asked if it was Randy Musgrove and the woman said yes, then confirmed it was "sexual stuff" but not sexual intercourse, Brown testified.

Brown said she reported the matter to the teen's legal guardian, who said she would notify police. But the family held off doing so because the teen was concerned about the impact on the Musgrove family, the school and church, Brown testified...

Read more: http://azstarnet.com/news/local/crime/article_bb1fa0fe-1672-590f-b7d1-f9321a63de14.html#ixzz1YEp9Pule

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *

“Police: Boy tried to poison classmates.” Arizona Daily Sun, 4/24/2008

PHOENIX (AP) — Tucson police have arrested a 10-year-old boy who allegedly put pills in a carton of juice and tried to get two classmates to drink it.

The boy was in the custody of a guardian and is charged as a juvenile with one felony count of poisoning food, drink or medicine, Tucson police Sgt. Mark Robinson said Thursday.

He said the La Paloma Academy student put various pills in pineapple-orange juice Wednesday morning and offered it to a 12-year-old boy, who was warned there were drugs in the drink by another student.

The 10-year-old then offered the drink to a girl of the same age, who also was warned about the tainted juice and didn't drink it, Robinson said.

A call to school Principal Jackie Trujillo-Watins was not immediately returned Thursday.

Six types of pills were found in the juice, in the school yard and in a trash can, Robinson said. It's unclear how many of them were in the juice.

Robinson said two of the pills were prescription medications that, if taken by somebody other than the patient they were prescribed to, lowers the blood pressure and decreases the heart rate to a potentially dangerous level.

While he said those effects could be more harmful for a child, he said there's no indication they would be life-threatening.

Robinson said the possible effects of a third prescription medication were unknown, as were the effects of the fourth type of pill — likely over-the-counter pain medication — and the other two types of pills, which were purple and yellow tablets.

Police said it's unclear what the student's motive was in bringing the pills to school and trying to get other students to ingest them.

"It could have been extremely serious," Robinson said. "I think the school administration took quick action on it and limited the other kids' exposure to this attempt to pass around tainted juice."

Ventana Academic School

“Female teachers accused of having sex with students.” The Arizona Republic, 2/12/1999

... This week, Marian Lamb, 39, former director of a Cave Creek charter school, was given a year in jail and lifetime probation for two counts of attempted sexual contact with two 14-year-old boys. According to court records, Lamb regularly lured students onto the grounds of Ventana Academic School, where she plied them with alcohol, marijuana, pornography and expensive gifts...

Gold Campus of Life School College Preparatory

“Charter teacher arrested in molestation.” East Valley Tribune (AZ), 10/23/2003

A 43-year-old Mesa charter school teacher was arrested Tuesday night on accusations he locked one of his students inside his classroom twice and molested her, police said.

Wade Gordon Oborn, a teacher at the Gold Campus of Life School College Preparatory, 2929 E. McKellips Road, is being held in Maricopa County’s Madison Street Jail in Phoenix without bail on suspicion of two counts of child molestation.

A 12-year-old girl told detectives the incidents happened between August 2002 and earlier this month while her classmates were at recess, Mesa police Sgt. Mike Goulet said.

Court records indicate that when Oborn was questioned he admitted his involvement and alluded that pornography had an impact on his behavior.

Oborn began working for Life School about two years ago after the standard fingerprinting and background checks were completed, said Reed McCormick, assistant director of Life School, which has 1,000 students among three campuses in Mesa and Gilbert...

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Wade Oborn was arrested on 12/9/2010 for Felony count of Probation Violation. http://www.whosarrested.com/arizona/maricopa-county/phoenix/mcso/226900-wade-oborn

Legacy Elementary School charter school (AZ)

“Former school bus driver sentenced in child molestation case.” azfamily.com (AZ), 8/13/2012

PHOENIX -- A former school bus driver in Mesa was sentenced on Monday morning to 10 years in prison and lifetime probation with sex offender terms.

Billy Bryant, 64, pleaded guilty to three counts of molestation of a child and one count of aggravated assault....

Bryant had previously worked as a bus driver for a charter school in Mesa. He was fired in 2009 after being accused in another molestation case.

========================================

“Former school bus driver arrested in molestation case.” East Valley Tribune (AZ), 11/16/2010

A 62-year-old former bus driver for Legacy Charter School who Mesa police say they questioned in a child molestation case last year was arrested Thursday on suspicion of two counts of child molestation after a 9-year-old girl told police he sexually touched her near and in his car...

Police said Bryant, who frequently visits a family in the neighborhood and is known as “Mr. Bill” to other children, also was arrested on one count of aggravated assault.

While the girl was being interviewed by an officer in the police department’s center against family violence, she told police that Bryant had grabbed her buttock and also had sexually touched her over her clothing while she was inside the car.

Last year, when Bryant was working as a bus driver for Legacy Charter School, similar allegations arose, but the case was later dropped after he denied the allegations and there were no witnesses to support the girl’s statements, police said. Bryant was fired from his job, according to police.

Because of Bryant working around children, police believe there may be more victims that have not come forward.

Allsport Academy

“5 years for ex Tucson teacher in student-sex case.” Arizona Daily Star, 08/23/2011

A former charter school teacher was sentenced to five years in prison and a lifetime of probation Monday in Pima County Superior Court.

Aaron Montoya, 31, was indicted in July 2010 on three counts of sexual conduct with a minor and pleaded guilty to two of those counts last month.

Montoya's now former wife called police after she caught him with a 14-year-old girl at their home, according to court records. The girl told police she'd had sex with Montoya at a hotel three or four times and once at his house.

Montoya taught the girl at Allsport Academy, 6211 E. Speedway, a charter school run by his father.

His father fired him...

Chester Newton/Sunnyside Charter and Montessori School

“AIMS tests invalidated at Camp Verde charter school; State investigated 'inappropriate' procedures in April.” The Bugle (AZ), 5/7/2011

CAMP VERDE - While area schools are waiting for official notification of their latest state testing results, one charter school has had to face serious cheating allegations.

Parents of children at Chester Newton/Sunnyside Charter and Montessori School contacted the Arizona Department of Education (ADE) with concerns over the way the AIMS test was administered. During an investigation by the ADE and the State Board for Charter Schools on April 19, all of the tests were confiscated.

On April 26, school Director Betty Chester received a letter from ADE with its conclusions about irregularities in the testing procedures and inappropriate assistance. Most of the tests in grades 3 through 8 were invalidated...

In her letter to students, Chester stated the ADE had concluded that [Principal Shirley] Sullivan "established a climate where cheating on the AIMS test, either between students or by adults offering inappropriate assistance to students, was both acceptable and expected. This occurred notwithstanding the fact Ms. Sullivan attended ADE training for test administrators."...

[Andrew LeFevre, director of Public Relations for the Department of Education] said it is rare to see an entire school come under investigation...

Berean Academy

“Berean staff air issues at meeting.” The Sierra Vista Herald (AZ) 02 Jun 2011 

SIERRA VISTA — After cutting his staff’s pay with little notice in May, Berean Academy Director Jim Fogarty was accused of mismanaging funds, violating the school’s by-laws, using improper accounting procedures and violating teacher contracts during a special board meeting Thursday night...

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *

“Berean board delays decision on staff grievance.” The Sierra Vista Herald/Bisbee Daily Review (AZ) 30 Jun 2011 

SIERRA VISTA — After waiting almost a month for a response to allegations against school director Jim Fogarty, the Berean Academy staff learned on Thursday that they will have to wait a while longer...

A complaint was filed with the state charter school board following the last meeting on June 2 when staff members accused Fogarty of mismanaging funds, violating the school’s by-laws, using improper accounting procedures and violating teacher contracts. Staff members were reacting to a sudden 30 percent reduction to their last three paychecks and what they called an “absurdly inadequate” response to a grievance they filed with Fogarty.

In addition to the June 2 meeting minutes, the state board requested all the materials provided to the board regarding the contents of the Herald/Review article that ran the next day. The issue of apparent concern to the person who filed the complaint was sixth-grade teacher Jennifer Schnupp’s statement that Fogarty admitted to using school funds for a private corporation — Berean Academy Pre-school — which operated at a loss.

Fogarty’s response to the state board includes articles of incorporation that show the preschool was formed as a non-profit subsidiary of the corporation. 

“Understandably several of the staff were upset when I talked with them about the pay cuts. Unfortunately several were too angry to hear anything I said,” Fogarty stated, in a response to the state board of charter schools. “I did NOT say ‘I used Berean Academy funds for the private corporation Berean Academy Preschool.’ There is no reason for me to mis-state the truth to my own detriment.”...

On Thursday, 28 days after the June 2 meeting, the staff still received no substantive response from the board regarding any of their numerous concerns and proposed solutions. After having their pay cut with three days notice and receiving little feedback from the board, the staff’s discontent was evident during Call to the Public at the meeting...

“It’s really hard to believe that nobody on that board had any idea this was coming down because that screams incompetence. Somebody had to know and yet we weren’t given a chance to prepare for it,” [school employee Donna] Hunt said. “If the employees of Berean had behaved in this manner, they would have been fired immediately … Instead of acting irresponsibly we have poured our hearts and our souls into this school.”...

Larry Graham’s grandson has been a student at Berean for seven years and Graham is an ardent supporter of each and every staff member after knowing them for years, he said...

After serving on a variety of boards in Arizona and California, this is the first time he has seen one where the executive officer and their spouse sit on the same board, Graham said.

“This completely eliminates any possibility of a board being unbiased. I think the only honorable and Christian answer to these problems is the immediate resignation of both the board president and his spouse.”