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Denis Smith used to work for the Ohio Department of Education, where he oversaw the charter schools. Now that he has retired, he can speak freely.
In this post, he reflects on the recall of faulty cars and airbags. And he wonders, what if faulty charters could be recalled?
The post is priceless for the number of links to industry malfeasance.
He includes a long list of charter industry failures, suggesting that embezzlement and cooking the books is not a one-off phenomenon, but a systemic failure.
Here are some examples of problems in that other, non-automotive, non-manufacturing industry:
A record 17 industry locations in one city – Columbus – closed in just one year.
One of the industry’s treasurers embezzled nearly $500,000 from several locations, earning a two-year prison sentence.
An executive in the industry, operating under a phony consulting contract, also embezzled about a half-million dollars, while employee salaries had to be cut in an economy move.
In Cleveland, five industry executives were charged with stealing nearly $2 million in a scheme that saw the creation of five shell companies to receive public funds. Even the board chairman, who owned the building in which the industry operated, was part of the fraud that was detailed in a 32-count indictment.
Three industry treasurers were singled out several years ago for their responsibility with more than $1 million in “questionable spending,” according to audit findings.