U.S. probe widens to 18 city charters
Details are sought on the use of public money.
What began as a federal probe of a single charter school in Northeast Philadelphia two years ago has spread to at least 18 schools and may be the largest federal charter investigation in the country, experts say.
"I can't think of a similar situation" anywhere else, said Nelson Smith, president and chief executive officer of the National Alliance for Public Charter Schools in Washington.
"There has not been any other state or city that has had this kind of charge made against so many [charters] in a confined period of time," said Jeanne Allen, president of the Center for Education Reform, also in Washington.
In recent weeks, a flurry of federal subpoenas has been served on schools across the city seeking five years' worth of financial records to show how the charters have spent taxpayer money.
Documents from one school provided to The Inquirer offer a glimpse into the broad scope of the federal inquiry. At New Foundations Charter in the Northeast, investigators sought a wide range of print and electronic records, including those showing how the school spent public money. The school received $5 million in the last academic year.
The federal probe was launched in May 2008, shortly after The Inquirer reported allegations of financial mismanagement, nepotism, and conflicts of interest at Philadelphia Academy Charter School in the Northeast. Two former officials are in federal prison after pleading guilty to fraud charges.
The probe widened as The Inquirer disclosed problems at other charters and now includes all 13 schools that City Controller Alan Butkovitz highlighted in his recent charter investigation.
Butkovitz found compliant charter boards, apparent conflicts of interest, unusual salary arrangements for chief executives, and complex real estate deals in which charters leased facilities from related organizations. He said the schools were chosen because documents indicated they had many of the same problems The Inquirer uncovered at Philadelphia Academy.
Smith said he was not surprised the probe had grown.
Given the controller's allegations, "the U.S. attorney is probably obligated to talk to people and ask for records," he
"I can't think of a similar situation" anywhere else, said Nelson Smith, president and chief executive officer of the National Alliance for Public Charter Schools in Washington.
"There has not been any other state or city that has had this kind of charge made against so many [charters] in a confined period of time," said Jeanne Allen, president of the Center for Education Reform, also in Washington.
In recent weeks, a flurry of federal subpoenas has been served on schools across the city seeking five years' worth of financial records to show how the charters have spent taxpayer money.
Documents from one school provided to The Inquirer offer a glimpse into the broad scope of the federal inquiry. At New Foundations Charter in the Northeast, investigators sought a wide range of print and electronic records, including those showing how the school spent public money. The school received $5 million in the last academic year.
The federal probe was launched in May 2008, shortly after The Inquirer reported allegations of financial mismanagement, nepotism, and conflicts of interest at Philadelphia Academy Charter School in the Northeast. Two former officials are in federal prison after pleading guilty to fraud charges.
The probe widened as The Inquirer disclosed problems at other charters and now includes all 13 schools that City Controller Alan Butkovitz highlighted in his recent charter investigation.
Butkovitz found compliant charter boards, apparent conflicts of interest, unusual salary arrangements for chief executives, and complex real estate deals in which charters leased facilities from related organizations. He said the schools were chosen because documents indicated they had many of the same problems The Inquirer uncovered at Philadelphia Academy.
Smith said he was not surprised the probe had grown.
Given the controller's allegations, "the U.S. attorney is probably obligated to talk to people and ask for records," he
