Philadelphia charter school probe expands: over 1/4 of city charters under federal investigation [View All]

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...

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...

In the last five years, the report said, the Inspector General's Office has opened more than 40 criminal investigations of charter schools nationwide that have resulted in 18 indictments and 15 convictions. The offenses have included embezzling, inflating enrollment to obtain more funding, changing grades, and creating companies to divert money from schools. But some charter proponents question why officials have put such a spotlight on Philadelphia's 67 charter schools...

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