Oregon charter school founders Tim King, Norm Donohoe agree to repay state $475,000, are forever banned from charter school operations in Oregon
Tim King and Norm Donohoe, Clackamas-based founders of a chain of taxpayer-funded charter schools that once stretched across Oregon, have agreed to repay the state $475,000 and dismantle the outfit they created to run the schools.
In addition, both men are banned for life from running, advising or otherwise getting financially involved with any charter school in Oregon, a court settlement reached last week says.
The Oregon Department of Justice initially demanded $20 million from the pair, who they said engaged in racketeering, money laundering and other fraud in operating charter schools from 2007 to 2010. The state agreed to dismiss that suit as part of its Nov. 21 deal with King and Donahue, approved by Marion County Circuit Court Judge Vance Day.
Although it is only about one-fortieth as much as it first sought, $475,000 still is a good deal for the state because both men are broke and the state now believes that most of the $17 million it paid them was legitimately used to educate qualifying Oregon students, said Michael Kron, the justice department's government transparency counsel.
The pair opened and operated at least 10 charter schools that went by various and changing names, including Baker Web Academy, Estacada Early College and Sheridan AllPrep Academy. Most were launched under the name AllPrep. They existed under