Charter school principal deposited $$ to personal Ameritrade account, paid ex-wife & non exis vendor

[Liberal_in_LA]

Los Angeles schools Supt. Ramon C. Cortines has moved to shut down a San Fernando Valley charter school over the alleged theft or misuse of as much as $2.7 million by the school's founding principal.

The problems at NEW Academy Canoga Park turned up in an audit released Monday by the inspector general's office of the Los Angeles Unified School District.

More than "$2 million of misappropriated and unaccounted public funds is egregious," Cortines wrote in a letter to the board of the school. "Students have been inexcusably deprived of funds that were designated solely to further their education."

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The former principal, Edward Fiszer, could not be reached for comment. Although not identified by name in the published audit, Fiszer was the target of the inquiry, officials confirmed.

NEW Academy Canoga Park opened in 2005 as an unusual example of public-private collaboration using school bonds and other funding sources to combine a new school with low-income housing.

The school's visible face, Fiszer, the author of three education and motivational books, was once honored as a "Champion of Children" in a City Hall ceremony.

Among the auditors' findings is that Fiszer allegedly withdrew cashier's checks totaling nearly $1.1 million from school accounts between July 1, 2007, and Sept. 30, 2009.

"The former principal claimed that funds deposited into his personal Ameritrade account were not withdrawn, but were deposited and repeatedly lost," the auditors wrote, apparently as a result of unsuccessful investments.

One cost questioned by auditors was $62,247 paid to a company called Burgundy Bunny for science enrichment for fourth- and fifth-graders over a six-week period. "We performed an Internet search to verify the validity of the vendor," auditors wrote. "We noted that the address and phone number were invalid. The address shows as a vacant lot. In addition, the business entity name does not exist."

Auditors also allege that the principal paid a former teacher — who at some point married the principal — $129,450 for services as a grant writer, although a company was already being paid for grant writing.

http://www.latimes.com/news/local/la-me-charter-20100831,0,3493919.story

[DJ13]

1. Maybe he took the "for profit" credo of the charter school industry too far?

:shrug: