than anything I have ever heard of in the traditional public schools though:
State educators are seeking criminal charges against the executives of a charter school operation after an audit found they had misused at least $25.6 million in public education money, including $2.6 million for personal expenses.
The audit found that executives of the now-closed California Charter Academy used public funds to pay for personal watercrafts, travel, health spa visits, Disney-related merchandise and more. Two employees even paid their income taxes with $42,000 in school funds.
"The magnitude of waste of precious education funds outlined in this audit is appalling," state schools Superintendent Jack O'Connell said Thursday as he released an audit of the charter.
In an effort to recover the misspent funds, O'Connell directed the Education Department's lawyers to file a multimillion-dollar bankruptcy claim against the school and its management company, the Educational Administrative Services Corp.
O'Connell sent the 107-page audit to state Attorney General Bill Lockyer and local prosecutors in San Bernardino and Orange counties, where the school had headquarters, so that they could pursue charges.
From 1999 until it went out of business last year, the California Charter Academy was the state's largest charter school operation, with more than 4,557 students in kindergarten through 12th grade, and more than 7,000 adults enrolled.
Its founder and chief executive, Steven Cox, formed the for-profit management company to run the vast network of satellite campuses across the state, including several in the Bay Area. Three Southern California school districts authorized four separate charter contracts with the company, each earning percentages of the state funding but providing little fiscal or academic oversight.
http://brockton.massteacher.org/charter_schools/california_csfraud.htmlCharter School Owners Found Guilty of Fraud
Posted on: Tuesday, 4 October 2005, 15:00 CDT
By Beth Silver, Pioneer Press, St. Paul, Minn.
Oct. 4--A federal grand jury Monday convicted the onetime owners of a former St. Paul charter school on charges they defrauded the school to pay for vacations, luxury cars and private homes.
After a three-week trial and nine hours of deliberation, the jury convicted William and Shirley Pierce of Minneapolis on all 13 counts, including conspiracy, filing false tax returns, and mail and wire fraud.
According to evidence presented at the trial in Minneapolis, the Pierces diverted money from the now-defunct Right Step Academy, using it for Caribbean cruises, clothes, and furniture. The Pierces, both 46, also used academy funds to buy charter schools in North Carolina and Arizona, and to buy houses in both states, prosecutors said.
http://www.redorbit.com/news/education/260395/charter_school_owners_found_guilty_of_fraud/Date: Friday, March 1 2002
Law enforcement officials in California have raided an Islamic charter school suspected of having ties to a terrorist organization and carted off 60 computers and 100 boxes of documents.
The GateWay Academy, a so-called "public charter school," was shut down in January and is the focus of an ongoing investigation. State officials said they are looking into allegations of fraud and financial wrongdoing at the school, but anonymous sources told The Washington Times there may be more to the matter.
According to the newspaper, the school is suspected of being tied to a militant U.S.-based black Muslim group called the Muslims of America. That group is in turn believed to be tied to al-Fuqra, a terrorist group linked to fire bombings and murders in the United States and Canada.
"We are not denying the Fuqra connection," Hallye Jordan, a spokeswoman for the California Attorney General's Office told the newspaper. "But that is not the focus of this. We are looking to allegations of financial fraud."
The GateWay Academy has received public funding since its founding two years ago. It is chartered by the Fresno Unified School District, although the school is located in a rural commune in the Sierra Nevada foothills, several hundred miles away. Officials with the California Justice Department are trying to account for $1.3 million in public funds that are missing.
http://www.articlearchives.com/crime-law-enforcement-corrections/criminal-offenses-fraud/1093549-1.htmlrobdogbucky