SCHOOL FUNDING I CHARTER SCHOOL FRAUD – $50M in State Funds and School Funding Stolen in California Charter School Fraud
June 06, 2019
A3education.org, a company with principal offices in Newport, CA, market themselves as offering “full services for start up schools”. As alleged by the district attorney’s office earlier this week, the company was a mastermind behind a statewide fraud scheme. Allegedly A3 Education would lure small public schools into establishing an online charter school in order to fraudulently acquire additional public school funding.
After establishing the online charter A3 would reach out to sports leagues and youth organizations to secure student names then further utilizes that information to manufacture and fraudulently misrepresent attendance and enrollment records. A3 Education would charge the public schools “oversight fees” to manage and operate these sham online charter schools.
One of the targeted districts, involved with the charter school fraud scheme is Dehesa Elementary School District, which has only about 150 students east of San Diego. Superintendent Nancy Hauer of Dehesa was charged with one count of misappropriating public funds earlier this week. Ms. Hauer was one of 11 people charged in a statewide fraud scheme. The fraud scheme managed to secure more than $50 million in public school funding and established 19 online charter schools.
There is ample media coverage on this case and found these two links to be highly informative: (1) Podcast: https://soundcloud.com/sdnewsfix/how-a-charter-school-scheme-allegedly-siphoned-50m-in-taxpayer-money-kristen-taketa-morgan-cook; (2) ABC News Coverage: https://www.10news.com/news/local-news/east-county-superintendent-placed-on-leave-amid-fraud-investigation
If you have any questions relating to misappropriation of funding, business fraud, corporate misconduct or breach of fiduciary, we encourage you to reach out to one of our experienced fraud lawyers at 619-432-5145.