Varnett charter school parents eligible for restitution after founders’ convictions
More than 4,000 parents whose children attended the Houston-based Varnett charter school network between 2007 and 2014 could receive restitution payments totaling more than $600,000 nearly a year after the district’s founders were convicted of siphoning millions from the schools, federal officials announced Tuesday.
Parents could be eligible for $110.02 per child for every year they attended one of the district’s three campuses. For example, if a family sent three children to the school for three years, it could be eligible for $990.06.
The money came from selling assets once owned by Marian Annette Cluff and her husband, Alsie Cluff Jr., who also have been ordered to pay $1.89 million to the charter school district, $1.83 million to the Internal Revenue Service, $100,000 to a Philadelphia-based insurance company and nearly $14,800 to two employees. Both Cluffs were sentenced in June 2018 and are in federal custody. Marian Cluff is serving 10 years for conspiracy to commit tax evasion and mail fraud; Alsie Cluff was sentenced to three years on a conspiracy to commit tax evasion conviction.
Ryan Patrick, U.S. Attorney of the Southern District of Texas, said Tuesday that the Cluffs billed parents for routine expenses — such as field trips and fundraisers — even though those functions already had been funded by the school. Instead of spending the money on students, the two used the extra funds to pay for lavish vacations aboard a private jet, furnish a 7,000-square-foot home in South Houston, purchase designer jewelry and fund upkeep on a ranch.
“What the Cluffs did was use this set of charter schools as pass-throughs for their own financial gain,” Patrick said.
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The Cluffs founded the Varnett school network, which has grown to serve about 1,600 elementary students across three campuses, in 1984. They paid themselves exorbitant salaries, Marian Cluff for working as the schools’ superintendent and Alsie Cluff for managing business operations. Alsie Cluff also made millions from contracts and other deals with the schools. The couple reported about $12 million in income from Varnett during an eight-year period.
In addition to giving themselves higher-than average salaries, the Cluffs skimmed money parents paid under the guise of CONTINUE READING: Varnett charter school parents eligible for restitution after founders’ convictions - Houston Chronicle
