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Pete
10-02-2020, 01:01 PM
This is looking very, very bad for the two principal owners.

I know the FBI has been investigating them for over 2 years.

https://oklahoman.com/article/5672919/deeply-concerning-investigative-audit-of-epic-charter-schools-released

TheTravellers
10-02-2020, 01:03 PM
About time! For those interested in more, check out Oklahoma Watch and NonDoc, they've done quite a few in-depth articles on Epic over the years.

TheTravellers
10-14-2020, 09:55 AM
Board sets termination hearing on Epic authorization (https://nondoc.com/2020/10/13/board-sets-termination-hearing-on-authorization-of-epic-school/)

FighttheGoodFight
10-14-2020, 10:00 AM
There has been great reporting on them for years. You could just tell they were shady the whole time and I hope Oklahoma gets some of that money back.

Pete
10-14-2020, 10:13 AM
Based on the extravagent spending of one of their co-founders, I would not expect a lot of the money to be recovered.

jn1780
10-14-2020, 10:28 AM
Its a shame how many parents had to turn toward epic during this pandemic. The public schools were slow to adapt to virtual learning.

emtefury
10-14-2020, 11:01 AM
The state virtual school is starting the process at terminating its contract with Epic.

Jersey Boss
10-14-2020, 11:34 AM
Its a shame how many parents had to turn toward epic during this pandemic. The public schools were slow to adapt to virtual learning.

It was also a shame the amount of money that was poured into these for profit organizations at the expense of common education.
Think how much Epic has spent since just Jan. of 2020 on advertising for students to enroll. Was that spending in the interest of educating childten?
Add to this the expense involved in the investigation

TheTravellers
10-14-2020, 12:07 PM
The state virtual school is starting the process at terminating its contract with Epic.

Um, yeah, that's what I posted in #3.

king183
10-14-2020, 12:44 PM
You had to know something was shady with Epic simply based on the MILLIONS they spent advertising on Oklahoma tv and radio. How could a public school possibly afford that amount of advertising?

Edit: Just saw Jersey Boss touched on a similar point. The tons of ads I heard weren't even trying to get enrollment; they were pure PR after several investigations were launched.

Also, note that Sen Ron Sharp, one of the foremost advocates of investigating Epic, was defeated in his primary this year. I'm sure Epic associated people and orgs funded much of the campaign to defeat him.

Jeepnokc
10-14-2020, 08:52 PM
I have gone through audits and have dealt with many cases where things don't always shake out the ways they are presented initially. There is a saying in the legal system is that your case is always strongest when you file it. EPIC is entitled to an opportunity to defend itself as well as time to look at the audit and allegations. It is what it is but lets hear both sides of the story. I will be more interested in this story once they actually have a hearing and allow both sides to present and challenge allegations.

dankrutka
10-14-2020, 10:15 PM
For profit education has consistently been fraught with corruption, lack of ethics, and poor understanding of education. This really isn’t surprising.

Rover
10-15-2020, 07:38 AM
I have gone through audits and have dealt with many cases where things don't always shake out the ways they are presented initially. There is a saying in the legal system is that your case is always strongest when you file it. EPIC is entitled to an opportunity to defend itself as well as time to look at the audit and allegations. It is what it is but lets hear both sides of the story. I will be more interested in this story once they actually have a hearing and allow both sides to present and challenge allegations.
Plus, hope all news and media such as this one have a chance to do a thorough, balanced and fair investigation in the public’s interest.

GoGators
10-15-2020, 07:51 AM
Their entire business model is just based around taking taxpayer money away from public education for personal enrichment at the detriment of Oklahoma children. I hope this is a wake up call for the people in this state who advocated for the law changes that allowed this to happen.

dankrutka
10-15-2020, 09:41 AM
For profit education has consistently been fraught with corruption, lack of ethics, and poor understanding of education. This really isn’t surprising.


I have gone through audits and have dealt with many cases where things don't always shake out the ways they are presented initially. There is a saying in the legal system is that your case is always strongest when you file it. EPIC is entitled to an opportunity to defend itself as well as time to look at the audit and allegations. It is what it is but lets hear both sides of the story. I will be more interested in this story once they actually have a hearing and allow both sides to present and challenge allegations.

This is fair. I've read the same reports everyone else has. I really don't know enough about the EPIC situation personally to pass judgment as I implied in my last post. My problem is with the for profit model that sucks money from public schools. I think it's a bad model that's bad for our communities. I thought I should clarify my comments are more generally aimed at for profit charters than Epic specifically.

DoctorTaco
10-15-2020, 10:41 AM
The thing that bothers me the most is that every parent i know has good things to say about EPIC. They have a decent model and execute it well. But just imagine the good they could do if the owners weren't gaming the system to pump up their profits and metrics (such as kicking out poorly-performing students before their poor performance was reported out via standardized tests and also if they weren't siphoning money off for themselves, for ads, for political campaigns etc.? Oh and also imagine if they weren't gamein

Jersey Boss
10-15-2020, 10:50 AM
The thing that bothers me the most is that every parent i know has good things to say about EPIC. They have a decent model and execute it well. But just imagine the good they could do if the owners weren't gaming the system to pump up their profits and metrics (such as kicking out poorly-performing students before their poor performance was reported out via standardized tests and also if they weren't siphoning money off for themselves, for ads, for political campaigns etc.? Oh and also imagine if they weren't gamein

I'd be more interested in what public schools have to say about the academic standing of students going to public schools in Norman, Edmond, Broken Arrow, etc. after a few years of EPIC education.

Rover
10-15-2020, 11:01 AM
Their entire business model is just based around taking taxpayer money away from public education for personal enrichment at the detriment of Oklahoma children. I hope this is a wake up call for the people in this state who advocated for the law changes that allowed this to happen.

Like trying to privatize Medicaid in OK? Or other public services?
For all those who think privatization is a panacea for government services, they ignore motives and history of private companies and their leadership. Assuming they are more righteous or capable than public servants is just naiveté.

TheTravellers
10-15-2020, 11:09 AM
I'd be more interested in what public schools have to say about the academic standing of students going to public schools in Norman, Edmond, Broken Arrow, etc. after a few years of EPIC education.

Here's something that's along those lines:

https://oklahomawatch.org/2020/02/27/epic-charter-grads-less-likely-to-enroll-in-college/

"In a five-month investigation into Epic’s college-going rates, Oklahoma Watch found that fewer than one in five 2019 graduates enrolled in a public Oklahoma college or university last fall. Its rate was lower than rates for all of the state’s 10 largest school districts, according to an Oklahoma Watch analysis of education data. The data was collected from every college and university in the state.

Epic reported far more high school graduates than the 10 districts, but far fewer enrolled in a state college."

"One measure of students’ preparedness for college is their score on the ACT college readiness exam.

Most regional universities want to see at least a 20 composite score out of a possible 35. Oklahoma State University admits students with minimum of 22 to 24, and the average score of University of Oklahoma freshman is 26. The state average is 18.9.

Epic’s graduating class of 2019 scored an average 16.5. That’s a significant drop from a 20.2 the previous year, when far fewer students took the exam.

Just 4% of Epic students met all four of the college readiness benchmarks established by the ACT, compared to 15% statewide."

5alive
10-15-2020, 11:18 AM
Wow...eye opening!

Pete
10-15-2020, 11:57 AM
Those ACT scores are atrocious.

Epic will have their opportunity to refute the findings, but from what I know from law enforcement that have been investigating this for years, I do not think it is going to end well for them.

jn1780
10-15-2020, 12:32 PM
Here's something that's along those lines:

https://oklahomawatch.org/2020/02/27/epic-charter-grads-less-likely-to-enroll-in-college/

"In a five-month investigation into Epic’s college-going rates, Oklahoma Watch found that fewer than one in five 2019 graduates enrolled in a public Oklahoma college or university last fall. Its rate was lower than rates for all of the state’s 10 largest school districts, according to an Oklahoma Watch analysis of education data. The data was collected from every college and university in the state.

Epic reported far more high school graduates than the 10 districts, but far fewer enrolled in a state college."

"One measure of students’ preparedness for college is their score on the ACT college readiness exam.

Most regional universities want to see at least a 20 composite score out of a possible 35. Oklahoma State University admits students with minimum of 22 to 24, and the average score of University of Oklahoma freshman is 26. The state average is 18.9.

Epic’s graduating class of 2019 scored an average 16.5. That’s a significant drop from a 20.2 the previous year, when far fewer students took the exam.

Just 4% of Epic students met all four of the college readiness benchmarks established by the ACT, compared to 15% statewide."

Thats bad, but to be fair Epic attracts a certain type of student/parent. The parent that blames all of their kids problems on the public school system are more likely to use epic. Never take personal responsibility for their kid. This was pre-pandemic anyway. They will probably get a boast in scores this year because they got a surge of kids coming from public schools.

Rover
10-16-2020, 12:32 PM
The thing that bothers me the most is that every parent i know has good things to say about EPIC. They have a decent model and execute it well. But just imagine the good they could do if the owners weren't gaming the system to pump up their profits and metrics (such as kicking out poorly-performing students before their poor performance was reported out via standardized tests and also if they weren't siphoning money off for themselves, for ads, for political campaigns etc.? Oh and also imagine if they weren't gamein
I know parents and students of Epic too. It is easy for kids to game their system too. This is like the affordable insurance claim from insurer's not wanting to pay for pre-existing conditions and long term illnesses ..... they can sell you cheap insurance, but it doesn't really fill the real requirement. You don't always get what you pay for, but usually do. Just remember, there is no such thing as a "free" lunch.

SouthOfTheVillage
10-18-2020, 07:18 AM
I’m glad to see the Epic guys are finally getting their comeuppance. Never a good deal when a group so flagrantly takes advantage of the taxpayers.

Plutonic Panda
12-17-2020, 02:45 PM
More news regarding Epic:

https://kfor.com/news/local/auditor-details-additional-findings-on-epic-charter-schools/

TheTravellers
12-09-2021, 08:55 AM
Epic’s Board Vice Chair Resigns, Asks for Investigation into Misconduct (https://oklahomawatch.org/2021/12/05/epics-board-vice-chair-resigns-asks-for-investigation-into-misconduct/)

State Opens Investigation of Epic Charter Schools Over New Allegations (https://oklahomawatch.org/2021/12/07/state-opens-investigation-of-epic-charter-schools-over-new-allegations/)

Midtowner
12-13-2021, 12:18 PM
I'm not saying there's fire. But there's a heck of a lot of smoke.

jedicurt
12-14-2021, 01:04 PM
I'm not saying there's fire. But there's a heck of a lot of smoke.

and you can see it glowing from a distance at night, and it sure is putting off a lot of heat.

Pete
12-14-2021, 01:07 PM
I'd be very surprised if criminal charges were not brought.

I know there have been ongoing investigations -- both state and FBI -- for several years.

April in the Plaza
12-14-2021, 07:28 PM
and you can see it glowing from a distance at night, and it sure is putting off a lot of heat.

And heat tends to melt things, because not all things are designed to be heat resistant.

Midtowner
12-15-2021, 10:22 AM
I'd be very surprised if criminal charges were not brought.

I know there have been ongoing investigations -- both state and FBI -- for several years.

People related to these investigations have a funny way of being primaried by someone with an overwhelming war chest, resigning, or being forced to resign.

TheTravellers
12-21-2021, 09:33 AM
State Board of Education signs off on withholding $9.1 million from Epic Charter Schools (https://tulsaworld.com/news/local/state-board-of-education-signs-off-on-withholding-9-1-million-from-epic-charter-schools/article_3b98a9d6-5e96-11ec-9f05-e7a99ece8624.html)

"The Oklahoma State Board of Education voted Thursday to dock Epic Charter Schools’ next 12 monthly payments by a total of $9.1 million as a penalty for its former management company’s having exceeded legal limits on administrative overhead costs.

This latest penalty, covering a five-year period from fiscal year 2015 through 2019, is in addition to a $10.5 million penalty the state Department of Education withheld from Epic for fiscal year 2020."

TheTravellers
02-02-2022, 03:32 PM
State auditor to lawmakers: Epic Charter Schools mismanagement is largest abuse of taxpayer funds 'in the history of this state' (https://tulsaworld.com/news/local/education/state-auditor-to-lawmakers-epic-charter-schools-mismanagement-is-largest-abuse-of-taxpayer-funds-in/article_7d9f6fc4-83a6-11ec-9c66-836dae32ab96.html)

"Amid these new questions about inaction by state law enforcement, federal authorities including the Internal Revenue Service are reportedly now zeroing in on financial irregularities alleged to have occurred at Epic Charter Schools during the decade it was managed by co-founders Ben Harris and David Chaney.

Byrd had been asked to present her office’s forensic audit findings about Epic before the two House education committees."

Midtowner
02-03-2022, 02:45 PM
Here's hoping the US Attorney files RICO charges and indict all of the public officials who have been complicit in Epic's corruption from the Governor on down. A kid can dream.

David
02-03-2022, 06:35 PM
State auditor to lawmakers: Epic Charter Schools mismanagement is largest abuse of taxpayer funds 'in the history of this state' (https://tulsaworld.com/news/local/education/state-auditor-to-lawmakers-epic-charter-schools-mismanagement-is-largest-abuse-of-taxpayer-funds-in/article_7d9f6fc4-83a6-11ec-9c66-836dae32ab96.html)

"Amid these new questions about inaction by state law enforcement, federal authorities including the Internal Revenue Service are reportedly now zeroing in on financial irregularities alleged to have occurred at Epic Charter Schools during the decade it was managed by co-founders Ben Harris and David Chaney.

Byrd had been asked to present her office’s forensic audit findings about Epic before the two House education committees."


“Wow. It gets worse and worse,” said Rep. Kyle Hilbert, R-Bristow, at the conclusion of Byrd’s presentation.

No kidding.

onthestrip
02-04-2022, 10:31 AM
And nothing but silence from our Attorney General.

HangryHippo
02-04-2022, 10:50 AM
And nothing but silence from our Attorney General.
He’s busy waffling over price gouging and losing to the tribes.

Rover
02-04-2022, 12:06 PM
And nothing but silence from our Attorney General.

Our governor Stitt has been a supporter of Epic and I believe has removed officials who called for audits didn't he?

Jersey Boss
02-04-2022, 12:11 PM
And nothing but silence from our Attorney General.

That's to be expected when you have a shrub for an AG. The US Atty. will be taking the lead on this.

Rover
02-04-2022, 03:08 PM
No kidding.

Largest misappropriation in the state's history is saying something with all the county commissioner corruption here.

This saga shows exactly why a certain political persuasion has been warned time after time that there is a reason to be wary of privatization of schools and other large public functions while at the same time relaxing oversight and regulations. It is either naïve or corrupt to believe this wouldn't happen. The temptation to skim huge amounts of money that these services provide is just too great for the greedy. Meanwhile, the poor citizens of the state will pay, and pay, and pay. Children will be uneducated and money will be spent anyway. Trusting everyone to be fair and honest needs to be backed by verifiable oversite and real consequences for stepping over the line ..... for EVERYONE involved. The law and order group should be the first to prosecute, but of course they aren't. That wrath is saved for others.

TheTravellers
03-10-2022, 11:57 AM
IRS Investigating Epic Charter Schools Finances (https://oklahomawatch.org/2022/03/09/irs-investigating-epic-charter-schools-finances/)

TheTravellers
06-22-2022, 09:59 AM
Enrollment Irregularities, Unapproved Bonuses: the Latest Epic Charter Investigation (https://oklahomawatch.org/2022/06/21/enrollment-irregularities-unapproved-bonuses-the-latest-epic-charter-investigation/)

Midtowner
06-22-2022, 01:01 PM
Epic is coming after any public official who asks questions. Look at the BS being slung at the current State Auditor for daring to ask questions. And the sad thing is, the voters are dumb enough to fall for their shenannigans and they tend to win. We already have a governor with no integrity. Add into that a potential future State Auditor, and the looting of the State Treasury can begin.

onthestrip
06-22-2022, 02:45 PM
Epic is coming after any public official who asks questions. Look at the BS being slung at the current State Auditor for daring to ask questions. And the sad thing is, the voters are dumb enough to fall for their shenannigans and they tend to win. We already have a governor with no integrity. Add into that a potential future State Auditor, and the looting of the State Treasury can begin.

The auditor candidate going against Byrd, and alleged to have major PAC money coming from Epic founders, has raised only $1,300. But half a million in PAC money has been spent on his behalf. That tells you how big of a joke of a candidate he is, only raising a tiny amount, not enough to seriously fund a campaign. But if you have half a million of dark money on your behalf, who knows what will happen. At least Stitt has endorsed Byrd as of yesterday I think.

Back to Epic allegations. For 5,000 students who were consistently absent, they would mark them present every 15th day so they would technically be considered enrolled by the state and Epic would continue to get full state funding for each of those 5,000 students.

Swake
06-22-2022, 02:52 PM
Epic is coming after any public official who asks questions. Look at the BS being slung at the current State Auditor for daring to ask questions. And the sad thing is, the voters are dumb enough to fall for their shenannigans and they tend to win. We already have a governor with no integrity. Add into that a potential future State Auditor, and the looting of the State Treasury can begin.

Don't forget the current AG, who is the Governor's creature and has failed to investigate Epic or Swadleys.

Midtowner
06-22-2022, 08:18 PM
Don't forget the current AG, who is the Governor's creature and has failed to investigate Epic or Swadleys.

My dealings with that office have always been cordial, but I mainly deal with the consumer fraud department, so I don't think they rate too highly in terms of political gravitas at the AG's office. But yeah, O'Connor is just another Stitt yes man. Mike Hunter shouldn't have resigned over a stupid affair. Get a divorce, sure. He had to know what would happen when he stepped aside.

Swake
06-23-2022, 01:11 PM
The founders of Epic Schools have been arrested.

https://www.newson6.com/story/62b4b8d82558180728f95320/founders-of-epic-charter-schools-arrested

Pete
06-23-2022, 01:18 PM
The co-founders of Epic Charter Schools have been arrested on charges of financial crimes, the Oklahoma State Bureau of Investigation announced.

Ben Harris, David Chaney and the chief financial officer for their company, Josh Brock, were taken into custody at 10 a.m. Thursday, the OSBI said.

Harris, Chaney and Brock were arrested on charges of embezzlement of state funds, racketeering, obtaining money by false pretense, conspiracy to commit a felony, violations of the state computer crimes act, submitting false documents to the state and unlawful proceeds.

https://www.oklahoman.com/story/news/education/2022/06/23/epic-charter-schools-co-founders-arrested-ben-harris-david-chaney/7714825001/

Laramie
06-24-2022, 05:40 AM
This is the very reason why you have regulations put in place when it concerns schools, to track accountability especially when funds are involved.

Charter Schools must be linked to a school district, where daily, monthly and fiscal monitoring of general fund accounts are reported; funds should require two signatures and all accounts go thru the Office of the Board Clerk. It's a longer accounting process...

Understand that people don't like red tape--Epic is an example of what can happen when there doesn't seem to be anything in place.

Pete
06-24-2022, 07:09 AM
You can read the entire 59-page charging document here:

https://www.documentcloud.org/documents/22066948-epic-charging-documents

Pete
06-24-2022, 07:32 AM
Oklahoma Watch has a detailed summary of the charges:


State Auditor and Inspector Cindy Byrd, whose office helped with the criminal investigation after several audits, said more than $55 million in public funds could have gone to the founders. The exact amount won’t be known until the Internal Revenue Service completes its own investigation.

https://oklahomawatch.org/2022/06/23/epic-co-founders-former-cfo-arrested-on-embezzlement-racketeering-charges%ef%bf%bc/

FighttheGoodFight
06-24-2022, 09:01 AM
I donated to Frontier, NonDoc and Oklahoma Watch this year. We need these teams to keep an eye on our government.

Pete
06-24-2022, 09:09 AM
BTW, the current charges are at the state level.

I know the FBI has been investigating (I spoke to an agent about this back in 2018) as there are issues with the school they operated in California; when money crosses state lines, that is the purview of the Feds. And as reported, the IRS is also conducting an investigation.

There seems to be a very high probability of federal charges being filed as well.


To put this in perspective, the movie Bad Education with Hugh Jackman was based on what was then the largest embezzlement scheme in the history of public schools; $10 million was taken from a New York district. One of the main culprits was sentenced to 4 to 12 years; the other (who fully cooperated) 3 to 9 years.

The number here is at least $22 million.

Libbymin
06-24-2022, 09:58 AM
I know that this story has been developing for years and years. Does anyone remember what initiated an investigation into Epic or how any of this story first broke? It's been so long that I honestly can't even remember.

Pete
06-24-2022, 10:05 AM
They were founded in 2011 and by 2013, then-governor Fallin asked the OSBI to investigate their enrollment practices.

Epic has been under scrutiny for almost a decade.

Midtowner
06-24-2022, 11:24 AM
And in the past, any time they were getting close to being in trouble, they'd dump a million bucks on a political campaign, or uncover dirt on the politicians investigating them and the problem would go away. There has recently been two PACs spending collectively around $1MM to defeat Cyndi Bird in her primary.

There was a special prosecutor appointed to investigate. Both she and the then Attorney General Mike Hunter resigned once it came out that they were having an affiar.

Former State Senator Ron Sharp was critical of Epic and then someone dumped big money into PACs and Shane Jett, a worthless Epic yes man won the primary.

They've had multiple State School Board members replaced with folks who wouldn't ask too many questions. The Governor's office has done a pretty decent job thwarting any sort of dissent.

It is shameful that this is being prosecuted by the Oklahoma County DA and not by the AG's office. I have a sneaking suspicion that Kevin Calvey will win the DA's office and make this thing go away.

soonerguru
06-25-2022, 12:12 PM
^^ This really concerns me. Calvey is vindictive, which is not good to have in a DA. Of the two opponents on the Dem side, who has the best chance to defeat Calvey, Behenna or Myles?

Jeepnokc
06-25-2022, 03:25 PM
Calvey has said that he will recuse himself from the case if elected This is more political hack work from the DA's office filing these charges the week of the election and then trying to tie Calvey to it so his Assistant DA Geiger would look better. Similar to Hofmeister several years ago and the charges were dismissed 9 months later

Midtowner
06-27-2022, 11:35 AM
Calvey has said that he will recuse himself from the case if elected This is more political hack work from the DA's office filing these charges the week of the election and then trying to tie Calvey to it so his Assistant DA Geiger would look better. Similar to Hofmeister several years ago and the charges were dismissed 9 months later

If you think those charges were dismissed because they weren't true, I highly doubt it. The Epic founders, according to the Tulsa World had such sway over state government that before the legislature would even consider any charter school legislation, it had to be personally approved by Ben Harris, co-founder of Epic.

Was there maybe some political bonus points to be made? I don't dispute it. Since Calvey has been so supportive of Epic, he should be tarnished.

And he hasn't said he'd recuse. He said he'd transfer the case to the Attorney General. You know.. the same Attorney General who dropped it just as soon as he was appointed after it was [suspiciously] conveniently discovered that the previous AG, Mike Hunter and the special prosecutor in charge of prosecuting Epic were having an affair. He'd just dismiss it again because he appears to be bought and paid for by Chaney and Harris, so him saying he'd transfer it is the same as saying he'd shut it down. He'd just have his cohort at the AG's office do it for him (again).

Please give your vote to literally anyone other than Calvey. The guy has been a grandstanding clown his entire time in office. He has never tried a criminal case in Oklahoma. He needs to go back to private practice so he can develop those skills before running for the big job.

I would support literally anyone in that race, Republican or Democrat other than Calvey.

And I also really like Behenna and Miles. Miles is married to a lawschool classmate of mine and is just a really decent human being. Behenna's son Michael played on my brother's soccer team. You may recall he was the subject of a UCMJ case where he was convicted of murdering a POW. You may recall the just astounding Brady violation of the Army not informing defense counsel that they had retained and fired a ballistics expert who did the research and backed up the Michael's theory of the case. Trump later pardoned Michael. Behenna was known as a very competent Assistant US Attorney here in the Western District of Oklahoma.

catcherinthewry
07-01-2022, 07:30 PM
https://tulsaworld.com/news/local/lawmakers-say-widespread-political-donations-made-addressing-epic-issues-difficult/article_2178084e-f3ec-11ec-814d-0b6987726f52.html

Tulsa World doing some good investigative reporting.