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Leaders of high-ranking CA charter school charged with embezzling $200,000 in public funds.

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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 01:22 AM
Original message
Leaders of high-ranking CA charter school charged with embezzling $200,000 in public funds.
Have you been hearing all those shouts and cries to hold public school teachers accountable? Have you heard how they need to be laid off or fired, or have their school closed and be replaced with charter schools?

There a little double standard going on now in the field of education. It has gotten worse since Arne started giving money to districts that lift the cap on charters.

There are good public schools, there are excellent public school teachers. There are a few good locally run charter schools. Yet they are not regulated.

Haven't we learned from the harm to our economy because of the lack of oversight? Are we not seeing what happens to oil wells in the Gulf when they are not regulated as they should be?

Yet now we are going to do the same thing with education.

Charter schools are funded with taxpayer money, yet they are privately run and free from most regulations that govern public schools run by school boards.

Charter school leaders charged with stealing over $200,000 in public funds

The leaders of a high-performing San Fernando Valley charter school were charged this week with stealing more than $200,000 in public funds through embezzlement, money laundering and filing false tax returns, among other alleged crimes. Eugene Selivanov, 38, and his wife, Tatyana Berkovich, 33, have denied any wrongdoing, according to their attorney.

The couple faces 38 felony and misdemeanor counts for alleged actions from 2004 through 2009 in their operation of Ivy Academia, a charter school with test scores that place it in the state's top 30% of schools.

..."Charters — public schools that are independently managed— allowed the couple to pursue their idiosyncratic vision. Students begin learning business principles in kindergarten and develop business plans in 6th grade. All grade levels participate regularly in a mock society that includes merchants and government agencies and the exchange of school currency for services and wages.

The couple has acknowledged that in the early days of the school, they mixed public funds from the nonprofit charter with money and accounts attached to earlier for-profit enterprises they operated: a preschool and a summer camp/school.

The practice attracted criticism from the Inspector General of the Los Angeles Unified School District, who conducted a 2007 audit of Ivy Academia. Selivanov, "through online banking access, transferred funds to and from the charter school and other affiliated entities," the audit said. "Most of these transfers were not recorded in the books of the charter school."


It is now 2010, and they are just being charged.

It is not unique in the misuse of public funds. Florida has been having trouble with Imagine Charters since 2005....yet they are still opening schools in the state.

Despite Debt, School Firm Aims to Open More Charters

With its 12 Florida schools already combining for more than $8.3 million in debt, one of the largest charter school companies in the country is looking to open at least nine more in the state this year, including one each in Palm Beach and Martin counties.

"There are times when you need to push for development, and now is one of those times," said Rod Sasse, director of development for Imagine Schools Inc. "Some of our schools that have been with us for a while are going out on their own now. And we just have to continue our development stream."

In Florida, only two charter schools managed by Imagine Schools have gone "out on their own" in the past three years, according to state and local records. The Central Florida town of Oakland took over Oakland Avenue Charter on Oct. 1 after the school received a D from the state this year. The North Tampa Alternative Charter was turned over to the school district in 2003 after several years of financial troubles.

Nationally, however, two dozen Imagine-managed schools have either shut down or cut ties with the company, according to an annual Arizona State University report. Just one other charter school company has lost more during that time.

"We've got a whole list of questions for them," said Hank Salzler, Martin assistant schools superintendent. "Their finances are going to be a big deal for us."


But guess what. Nothing has been learned from the past. A St. Pete Imagine Charter is now one million in debt to their parent company...and taxpayers will pick up the tab.

That harms public education rather than helping it.

Imagine charter one million in debt

Not only that, it is an F school.

An F-rated St. Petersburg charter school stands on the verge of collapse, mired in debt and losing enrollment. And most of those debts — around $1 million in public tax dollars — are owed to the same private company that founded it.

Pinellas County district officials say they're battling with Virginia-based Imagine Schools, the nation's largest commercial charter operator, over the future of the Central Avenue school. The school was $963,572 in deficit last spring, according to auditors. It's paying $881,179 to lease a half-empty building from Imagine's real estate affiliate, plus thousands more for equipment, administration and fees, on income of just $2 million a year.

"It's a death spiral," said district charter supervisor Dot Clark.


Why did an audit of the L. A. Charter school take 3 years?

Why is Imagine still opening schools in Florida and other states?

Where are the cries for accountability?




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Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 01:52 AM
Response to Original message
1. k & r
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laughingliberal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 02:08 AM
Response to Original message
2. IMO, embezzlement of public funds is one of the reasons for the existence of Charter schools.
Broad brush, I realize but isn't the point of charter schools to divert our public money out or our public school system?
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Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 02:14 AM
Response to Reply #2
4. That's the plan.
Divert the public funds and starve out public schools.

http://educationnext.org/wave-of-the-future/

The Wave Of the Future



In total, these strategies should lead to rapid, high-quality charter growth and the development of a public school marketplace marked by parental choice, the regular start-up of new schools, the improvement of middling schools, the replication of high-performing schools, and the shuttering of low-performing schools.

As chartering increases its market share in a city, the district will come under growing financial pressure. The district, despite educating fewer and fewer students, will still require a large administrative staff to process payroll and benefits, administer federal programs, and oversee special education. With a lopsided adult-to-student ratio, the district’s per-pupil costs will skyrocket.

At some point along the district’s path from monopoly provider to financially unsustainable marginal player, the city’s investors and stakeholders—taxpayers, foundations, business leaders, elected officials, and editorial boards—are likely to demand fundamental change. That is, eventually the financial crisis will become a political crisis. If the district has progressive leadership, one of two best-case scenarios may result. The district could voluntarily begin the shift to an authorizer, developing a new relationship with its schools and reworking its administrative structure to meet the new conditions. Or, believing the organization is unable to make this change, the district could gradually transfer its schools to an established authorizer.

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breadandwine Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-16-10 10:28 AM
Response to Reply #2
18. I realize this isn't popular everywhere, but if the Democratic Party supported school choice
it would end the Republican Party because key segments of the the religious right would be fractured, in the South and the Midwest, and the GOP can't win national elections without monolithic support in the heavily fundamentalist South and without prevailing in the key battleground region of the heavily Catholic Midwest. If we can bail out Wall Street we have enough resources for school choice and we should buy off those religious voting blocs so that they never again tyrannize this country with their GOP politics.



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yurbud Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 02:11 AM
Response to Original message
3. the only thing surprising is that its being reported on.
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lostnfound Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 05:40 AM
Response to Original message
5. Right up there with privatizing water. People won't realize it until they are forced to put their
kids in a charter school because so many public schools have been destroyed, and then they will realize they have little recourse when kids are indoctrinated with "free markets" or "trickle-down" economics instead of civics, replace science classes with advertising for the latest consumer gadgets, and engage the kids in regimented authoritarian Communist-China-style 'education' with a distinctly fascist flavor. Eventually we'll need more big bailouts for these private companies.
On the other hand, public schools have already entered students into http://www.good.is/post/detroit-high-schools-teach-how-to-work-at-walmart/">work-study programs for Walmart so unfortunately they already have accomplishing some of the curriculum changes they've desired.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 08:44 AM
Response to Reply #5
6. That school is listed as "alternative education.".
Edited on Tue Jun-15-10 09:36 AM by madfloridian
Unfortunately many districts don't show which are charter schools. So it is confusing and hard to find out unless one calls and asks.

http://www.detroit.k12.mi.us/schools/by-curriculum/Alt/

I don't know what that term means in Detroit. But it often means charter or magnet or school of choice.
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laughingliberal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 09:33 AM
Response to Original message
7. kick nt
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 12:35 PM
Response to Reply #7
8. ....
Thanks for the kick. It dropped quickly.
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KamaAina Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 12:50 PM
Response to Original message
9. "Students begin learning business principles in kindergarten"
Well, clearly they're learning from the best. :sarcasm:
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 12:54 PM
Response to Reply #9
10. Ah, yes. Learning from the best.
:hi:
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olegramps Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-17-10 09:06 AM
Response to Reply #9
19. It is just part of the Republican Unethical Rand based system.
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nyc 4 Biden Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 01:59 PM
Response to Original message
11. k&r n/t
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cate94 Donating Member (573 posts) Send PM | Profile | Ignore Tue Jun-15-10 05:10 PM
Response to Original message
12. k & r
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Trillo Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 05:22 PM
Response to Original message
13. I bet they didn't even teach the kids how to do what they do.
On one level, that could be good, since it appears that "embezzlement, money laundering and filing false tax returns" is against the law.

On another level, do we really want mandatory schools that lecture to kids one thing but who themselves do another?
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Overseas Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 06:44 PM
Response to Original message
14. K&R. So sad. So much corruption in privatization. //nt
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WestSeattle2 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 07:53 PM
Response to Original message
15. It took decades to even start bringing accountability
to public schools; the fact that it took three or five years to crack down on these outfits should not surprise. Public education needs overhauling, from the classrooms up to administration and oversight. The amount of graft and corruption in many districts is as appalling as the dropout rates and violence in the schools themselves. It's the very definition of systemic failure.
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WillYourVoteBCounted Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-15-10 09:23 PM
Response to Original message
16. these criminals were teaching children business principles? Right.
raising a whole generation of embezzlers?
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Jefferson23 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-16-10 10:19 AM
Response to Original message
17. K&R
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