More details:
http://www.mercurynews.com/breaking-news/ci_20850728/state-audit-finds-evidence-fraud-conflicts-interest-by
Between mid-2007 and the end of 2011, the school paid Chavis, his wife, Marsha Amador, and their various real estate and consulting businesses about $3.8 million, the auditors found. Many of those payments were made with state and federal facilities grants in the form of construction contracts to Chavis' companies -- business deals for school construction work that never went out to bid.
Meanwhile, the school's weak governing board did little to stand in the way, auditors found. For a short period of time last year, Chavis served on the board while he was employed as the organization's director and his wife was handling the books.
"The lack of due diligence and internal controls by the governing board has effectively granted the founder and his spouse unrestricted access to the assets of the organization and implied authority to enter into a variety of business arrangements for personal gain," the report stated.
Other findings included the opening and closing of bank accounts without approval and $25,700 in credit card purchases billed to the school with no authorization or apparent benefit to the school. They included airfare, restaurant, hotel and retail bills from out-of-state, including the North Carolina town where Chavis owns a farm; DirecTV; Giants tickets; and costs related to another venture, which foundered after the investigation became public -- the opening of a charter school in Arizona.
Chavis announced his retirement before the start of 2007-08 school year and returned to the school as director in 2011. He said at a recent hearing that he was a paid adviser during some of the time in between.
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