Accountability Arizona Charter Schools Education Industry Education Reform For-Profit Privatization Virtual Charter Schools

Arizona: Online High School,Collects $10 Million Profit in One Year, and DeVos Wants More of Them

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Our new Secretary of Education Betsy DeVos is very enthusiastic about virtual charter schools, even though the research shows that students don’t learn much while enrolled in them. Apparently, good works mean less than good profits.

In Arizona, a new online high school is returning remarkable profits. Jim Hall, retired educator, started an organization called Arizonans for Charter School Accountability, and he has a well-documented, horrifying story to tell about the defrauding of taxpayers.

News Release Contact Jim Hall

Arizonans for Charter School Accountability
[email protected]
602-343-3021
February 27, 2017
Phoenix, Arizona

The Consequences of Unregulated Charter Schools:

For-Profit American Virtual Academy Nets $10 Million Profit in 2016 After Siphoning $84 Million from Non-Profit Primavera Online. (Full report)

In its first year of operation as Primavera Online High School, for-profit charter holder American Virtual Academy (AVA) made an astounding $10 million profit in 2016. American Virtual Academy was given the charter for Primavera Online by non-profit Primavera Technical Learning Center (PTLC) in 2015 without compensation.

PTLC operated Primavera Online from 2002 to 2015 and had annual revenues of over $30 million a year with accumulated total cash assets of over $44 million with no debt. PTLC was the richest non-profit charter holder in Arizona in 2015.

On May 21, 2015 the PTLC Board suddenly decided to relinquish their charter to their software supplier, American Virtual Academy. There was no money exchanged in the transaction. PTLC is now out of the charter school business and is sitting on $44 million in assets.

Both PTLC and AVA were incorporated and directed by the same man, Damian Creamer. Creamer and his family members have received over $2 million in compensation as officers of PTLC. PTLC has employed Creamer’s software company, American Virtual Academy, since 2005 – paying AVA over $84 million from 2009 -2015 just to use software created by Creamer for Primavera Online.

In 2016 Primavera Online had a record year earning over $40 million. Creamer paid his new software company, FlipSwitch Inc., $13 million for software licenses and another $2.5 million for software support. Despite these huge expenditures, AVA cleared $10 million in profit that went to the company’s only stockholder, Damian Creamer.

Jim Hall, founder of Arizonans for Charter School Accountability commented, “This is worst case of a private citizen profiting from the actions of a non-profit organization imaginable. There is a charade going on in the charter school industry, both in Arizona and around the nation, that allows charter owners like Damian Creamer to control non-profit charter schools to enrich their for-profit subsidiaries – and themselves.”

The full report is at azcsa.org

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