Campaign News

A new report by two groups that oppose reforms that are privatizing public education finds fraud and waste totaling more than $100 million of taxpayer funds in 15 of the 42 states that operate charter schools.

The report, titled “Charter School Vulnerabilities to Waste, Fraud, & Abuse,” and released by the nonprofit organizationsIntegrity in Education and the Center for Popular Democracy, cites news reports and criminal complaints from around the country that detail how some charter school operators have illegally used public money. It also makes policy recommendations, including a call for stopping charter expansion until oversight of charter operators is improved. Released during National Charter School Week, it notes that despite rapid growth in the charter industry, there is no agency at the federal or state level that has the resources to provide sufficient oversight.

The Obama administration has supported the spread of charter schools but has also called for better oversight. Proponents of charter schools say they provide choices for parents and competition for traditional public schools, but critics note that most don’t perform any better — and some of them worse — than traditional public schools and take resources away from school districts. Some critics see the expansion of charter schools as part of an effort by some school reformers to privatize public education.

The report details cases from state after state, among them:

*In Washington D.C.:

In the fall of 2008, the U.S. attorney’s office issued a subpoena for school financial records related to L. Lawrence Riccio’s “alleged criminal activities” at the School for Arts in Learning (SAIL). Known internationally for his work in the education of youth with disabilities, Riccio founded the Washington, DC charter school in 1998, but by 2007, a memo by a financial consultant to SAIL’s former chief financial officer describes complete disarray of financial matters. Though grant money had been flowing in, staff members were not allowed to purchase supplies, rent went unpaid, and funds from one Riccio-led organization paid expenses for another. Financial statements showed that SAIL and sister organizations paid a $4,854 credit card bill to cover Mr. Riccio’s travel -related expenses in Scotland, as well as membership dues and dinner tabs at the University Club, a premier private club. SAIL covered expenses for travel to Boston, Denver, Houston and New Orleans; grocery stores, drugstores, wine and liquor stores and flower shops, cafes and restaurants, a salon and spa, Victoria’s Secret and at a glass, paint and wallpaper shop in France, where Mr. Riccio and his wife maintain a private residence.

and

Former leaders of Options Public Charter School are under Federal investigation for possible Medicaid fraud and other abuses. They are accused of exaggerating the needs of the disabled students, bilking the federal government for Medicaid funds to support their care, and creating a contracting scheme to divert more than $3 million from the schools for their own companies, including a transportation company that billed the Federal government for transporting students to the school, but apparently offered gift cards to students to increase ridership on the buses. Additionally, a senior official at the D.C. Public Charter School Board allegedly received $150,000 to help them evade oversight.

*In Ohio:

Ohio Auditor of State Dave Yost, speaking about nearly $3 million in unsubstantiated expenses amassed by the Weems Charter School, said: “This is a heck of a mess…Closed or not, the leadership of this school must be held responsible, and the money must be returned to the people of Ohio.”

* In Wisconsin:

In 2008, Rosella Tucker, founder and director of the now-closed New Hope Institute of Science and Technology charter school in Milwaukee, was convicted in federal court of embezzling $300,000 in public money and sentenced to two years in prison. Tucker acknowledged taking U.S. Department of Education money intended for the school, which she started through a charter agreement with Milwaukee Public Schools. She spent about $200,000 on personal expenses, including cars, funeral arrangements and home improvement, according to court documents. Tucker has argued that the remainder of the money she received was legitimate reimbursement for school-related expenses. Tucker embezzled the $300,000 from 2003 to 2005. The Milwaukee School Board voted to close New Hope Institute of Science and Technology in February 2006, amid problems that included unpaid bills and lack of appropriate teacher licensure.

* In California:

Steven A. Bolden pleaded guilty on January 2, 2014 to stealing more than $7.2 million worth of computers from a government program. Between 2007 and 2012, Bolden invented more than a dozen education non-profits, including fake charter schools, to benefit from a General Services Administration program that gives surplus computer equipment to public schools and non-profits. In July 2012, a GSA undercover investigator was contacted by Palmdale Educational Development Schools, one of Bolden’s organizations, and sent Bolden 9 laptop computers, which Bolden sold via Craigslist.

Here’s the report:

Charter School Vulnerabilities to Waste, Fraud, & Abuse

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Update: December 30, 2016, 12:00 p.m. EST: Versace has issued a statement affirming its commitment to equality: “Versace believes strongly in equal opportunity, as an employer and a retailer. We do not tolerate discrimination on the basis of race, national origin or any other characteristic protected by our civil rights laws. We have denied the allegations in this suit, and we will not comment further concerning pending litigation.”

Originally posted on December 27, 2016:

Versace is coming under fire for allegedly using a secret code to alert workers when an African-American person enters the store. A former employee who says he experienced the shocking scenario firsthand is suing for unpaid wages and damages.

According to the lawsuit, Christopher Sampiro, 23, claims the employees at the Bay Area Versace location used the code word “D410” to casually let each other know when a black person entered the store. The exact code is also used to identify all black clothing. After learning of the practice, the plaintiff, who self-identifies as one-quarter African American, responded to his manager by asking, "You know that I'm African American?" Following the exchange, Sampiro claims he was denied rest breaks and a "legitimate" training. He was fired two weeks later.

The management told Sampiro that he was let go because he hadn't "lived the luxury life," the lawsuit reports. Versace denied the allegations and filed a request for dismissal of the suit—but this isn’t the first time the Italian fashion house has gotten into trouble for its similarly questionable actions related to race.

Earlier this summer, the company released its fall 2016 ad featuring Gigi Hadid as the matriarch of an interracial family. While the campaign initially received praise for the depiction of a racially-diverse family, people were later upset to find that the 21-year-old model was depicted as a mother of two small children. One of the black children also appeared to be strapped into its stroller with a metal chain...it was odd, to say the least. In response to the criticism, Versace released a statement that said, "The campaign is made of a series of tableaux, some real-life and some fantastical. One part of the story is very glamorous, almost a fantasy, a kind of dream. The other part of the story is the same people, but in their real lives.”

Legal controversy related to race isn't new in the world of fashion. Last year, the Center for Popular Democracy accused Zara of racial profiling in a new report compiled from a survey of 251 Zara employees in New York City. According to the report, the store employees used the word “special order” to trail black customers who were deemed potential thieves while shopping. In the survey, 46 percent of employees claimed black customers were called “special orders” "always" or "often," while 14 percent said the same about Latino customers and 7 percent said the same about whites.

While Zara refuted the claims, both Versace and the Spanish retailer's cases, if proven to be true, show that the industry still clearly has a long way to go when it comes to diversity.

By KRISTEN BATEMAN

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02.10.2020

San Juan, Puerto Rico --  In response to the new debt adjustment deal announced by the Financial Management and Oversight Board (FOMB) on February 9th, the co-director of community dignity campaigns at Center for Popular Democracy, Julio Lopez Varona, shared the following statement:

“The FOMB’s latest proposal should be seen as an insult to the people of Puerto Rico. This agreement ensures lofty payments to hedge funds and corporations who paid cents on the dollar on bonds that were in some cases emitted illegally. These payments will be funded by cutting pensions and imposing even more taxes, despite the struggle to recover from ongoing earthquakes and the impact of Hurricane Maria. No payments to Wall Street should be made while Puerto Rico struggles to recover. It is imperative that we reject this agreement and demand the cancellation of the debt as the only way to a fair recovery.”

Despite Puerto Rico’s unsustainable debt undergoing renegotiating deals for the last few years, the FOMB’s proposal has barely reached a consensus on a plan that does more than benefit Wall Street and bondholders. The proposal would give bondholders more than a 70% rate of recovery, retrieving that by raising local taxes and sustaining an 8.5% cut to pensions. 

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Like many people, when the alarm goes off, I hit snooze a few times and wish for more sleep. But what gets me out of bed is that precious hour I have with my young son. We eat breakfast together, we race to see who can get dressed first, and then I walk him to school.

I’m lucky– as a salaried employee at an organization that values flexibility and family, I can arrange my schedule around my son if need be. But for people working low-wage hourly jobs, that kind of control over their scheduling is virtually unheard of.

Today, corporations that pay low wages rarely provide their employees with full-time work or reliable hours. Take Manuel, who works at one of Emeryville’s many retail chains. He had his hours cut from 20 a week down to four, and then nothing for two weeks — throwing his family into massive debt.

Emeryville may be the first city in the East Bay to change that, where the City Council is voting on a Fair Workweek policy on Oct. 18. This is part of a simple set of standards needed to ensure that working people can afford to stay in the East Bay region.

What is a Fair Workweek? It means employers must provide reliable, predictable hours so their employees can budget. Workers get schedules two weeks in advance so they can plan childcare, second jobs, family time, and even rest. And when more hours are available, current employees get priority so they can get closer to full-time work.

In Emeryville, the policy would only apply to large companies with more than 12 locations worldwide. These simple improvements would cost employers almost nothing if they follow the law and have a huge impact on the lives of thousands of Emeryville workers. Hundreds of thousands more working people would benefit if other East Bay cities follow suit.

Emeryville’s own Economic Development Advisory Committee – the city’s business advisory group – said even they agree that increasing stability of schedules, reducing employee turnover, and decreasing underemployment in Emeryville is important. And that’s what a Fair Workweek policy would do.

Many companies are already doing the right thing. This policy would reinforce that good behavior and target companies that are bad actors. However, global, multi-billion dollar corporations and their lobbyists are coming out against this low-cost policy, claiming it will kill the economic climate. But I wonder: how exactly would reliable schedules hurt companies like IKEA, The Gap or Home Depot?

Before the recession, big business painted doomsday scenarios saying that raising wages would force them to close shop. During the Great Recession, working people bore the brunt of tough times in the form of reduced pay, slashed benefits, and a cutback to part-time hours. And now that big business has not only recovered but is booming, companies are back to the mantra that improving standards for their workers will hurt them.

Common sense tells us that business — especially big business — is doing fine. Look at quarterly earning reports of Emeryville’s global retail chains. Sales tax revenue in Emeryville was up 2.4 percent in 2015 compared to the previous year according to the city’s Finance Department. Retail vacancies in the region are at a post-recession low of 6 percent. And of course, there are growing lines of cars and customers coming in and out of Emeryville’s shopping centers.

While business is thriving, working people have waited long enough for something so very basic: a single job that pays enough with enough hours to allow folks to meet their basic needs.

Raising the minimum wage helped struggling workers. Now we must finish the job by providing reliable, predictable hours. This economic boom shouldn’t just be a boon for shareholders. It should also lift the working people who are the backbone of our economy.

By Jennifer Lin

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