Prosecutors: Businessman diverted education money meant for Pinellas, Hillsborough charter schools

[TexasTowelie]

A businessman whose companies managed 15 charter schools in Florida, including six across Pinellas and Hillsborough counties, was charged Monday with racketeering in what prosecutors said was a scheme to steer public education money his way using huge markups, bogus invoices and a web of related corporations.

From 2007 to 2016, according to an affidavit, charter schools controlled by Marcus Nelson May and his company, Newpoint Education Partners, received more than $57 million in public funds — including more than $1 million he used for personal expenses and to purchase residential and business properties in Florida.

The sum does not include the 18 percent fee and other reimbursements that Newpoint received under generous management agreements that May secured with inexperienced local charter school boards, the affidavit states.

Warrants have been issued for May's arrest and the arrest of an associate, Steven Kunkemoeller, who operated Red Ignition and School Warehouse. Those companies, along with Newpoint, were the focus of a 2016 Tampa Bay Times investigation and were found to have sold marked-up goods to Newpoint-run charter schools.

Read more: http://www.tampabay.com/news/education/k12/prosecutors-businessman-diverted-education-money-meant-for-pinellas/2327828

[Frustratedlady]

1. From what I've seen of many charter schools, I don't think this is unusual.

That, and false test results to meet stated goals. While the government supports charter schools, public schools suffer. Once they catch on to the fraud being committed to collect more money, it will be too late for the public schools which must serve all children...not pick and choose their students.

Public schools have the interest of the children while charter schools tend to lean more toward enrollment and money/student. Is there enough oversight to prevent fraud?