The Carden School of Tucson

“2 charter schools struck by thefts.” Arizona Daily Star, 1/1/2012  

When charter school director Bette Jeppson sat down with an accountant last March, she expected to get a few tips on how the school could improve its bookkeeping and finances.

What she got instead was a litany of illegal transactions by the school's business manager that drained resources to the point the school was forced to cut back in educational spending, making it one of two Southern Arizona charter schools to come under investigation by the Arizona attorney general for financial improprieties.

For example, Jeppson didn't expect to learn business manager Keri Gall had given herself a 29 percent raise and was making 40 percent more than she herself was.

Or that the manager had used the school's credit cards to buy a $1,000 boxer, designer clothes, manicures, groceries and items used to remodel her home.

Jeppson was even more stunned to learn the manager hadn't been depositing money into teachers' IRAs and even forced one to pay her own health insurance...

Instead, Jeppson found out that morning Gall had been writing checks to herself and fixing the books, plus misusing the credit cards...

Originally charged with one count of fraud and four counts of theft, Gall pleaded guilty to one count of theft. She was also ordered to pay $150,280 in restitution at no less than $500 a month.

Authorities can prove Gall stole $128,000 between Jan. 1, 2007 and March 23, 2011; the K-8 school couldn't afford to dig back to her 2003 starting date...

Gall is not the only charter school employee to end up before a judge in recent months...[SEE entry for The Pima Partnership School]

Read More

Horizons K-8 Charter School

HORIZONS CHARTER FOUNDER FACING THEFT, EMBEZZLEMENT CHARGES; November 13, 2007; DailyCamera.com (Boulder, CO) 

A founder of Boulder's Horizons K-8 Charter School has been arrested on suspicion of theft, forgery and embezzlement based on alleged misrepresentations made to the state's retirement program.

Ann Leslie Kane turned herself in and was arrested Friday. She has bonded out of jail.

Boulder Valley spokesman Briggs Gamblin said Horizon's parent board brought financial concerns to the school district a couple of years ago. The district commissioned an independent audit, which uncovered red flags, he said, and the information was turned over to the Boulder County District Attorney's Office in late 2005…

The possible charges, all felonies,are one count of theft, one count of attempting to influence a public servant, two counts of forgery and one count of embezzlement of public property. All charges relate to allegations that Kane misrepresented her salary, which would allow her to collect more retirement money through the Public Employees Retirement Association, according to a school statement…

Read More

Hospitality Public Charter High School

FORMER CHARTER SCHOOL BOOKKEEPER PLEADS GUILTY TO THEFT OF FUNDS; November 9, 2010; Department of Justice Press Release

WASHINGTON—Ashanti Bumbray, a former bookkeeper for the Hospitality Public Charter High School in the District of Columbia, pled guilty today to a felony charge stemming from her theft of more than $23,000 of school funds, announced U.S. Attorney Ronald C. Machen Jr.; John G. Perren, Acting Assistant Director in Charge of the FBI's Washington Field Office; and Charles J. Willoughby, Inspector General for the District of Columbia.

Bumbray, 32, of Waldorf, Maryland, pled guilty in the U.S. District Court for the District of Columbia before the Honorable Judge Rosemary M. Collyer to a charge of theft from a program receiving federal funds. The charge carries a maximum sentence of 10 years' incarceration and a fine of up to $250,000. Based on the sentencing guidelines, the likely range is probation to six months of incarceration with a fine of $1,000 to $10,000. Sentencing is set for February 9, 2011.

According to the Statement of Offense filed with the Court, Bumbray was a bookkeeper at Hospitality Public Charter High School from approximately September 2008 until February 2009. Starting in early October 2008 through late January 2009, she stole more than $23,000 of Hospitality's funds by issuing checks and initiating banking transactions for her personal benefit.

In announcing the plea, U.S. Attorney Machen, Assistant Director Perren, and Inspector General Willoughby praised the investigative efforts of the special agent who worked on the case for the FBI's Washington Field Office, as well as Special Agent Kerthalia Peavely of the District of Columbia Office of Inspector General. They also recognized the efforts of U.S. Attorney's Office Legal Assistant Jared Forney and Assistant United States Attorney John D. Griffith, who prosecuted the case.

Read More

Explorer Charter School

FORMER PRINCIPAL ARRESTED ON GRAND THEFT CHARGES; January 6, 2009; WFTV (FL) 

BREVARD COUNTY, Fla. -- The former principal of Explorer Charter School, a Brevard County elementary and middle school, turned himself in at the Brevard County jail Tuesday. He's accused of stealing funds from the now-defunct school.

The Florida Department of Law Enforcement has also issued an arrest warrant for Jay Maer, the former finance director, who is also accused of stealing funds from the school. He was arrested Tuesday afternoon in Indian River County.

Eyewitness News was there when Ruben Rosario turned himself in to Florida Department of Law Enforcement agents at the Brevard County jail. The former principal is facing four counts of grand theft for stealing thousands of dollars from the charter school he ran in West Melbourne…

Rosario's finance director, Jay Maer, an ex-con, defended the school's bookkeeping as the district took over the school last spring. He is in even more trouble. He faces 46 charges, including grand theft and forgery. Investigators said he wrote checks to himself for all sorts of things, including coaching stipends, providing security at the school grounds and forging the principal's name.

"When in reality there was no work being done and no extra duties being performed," Ivey explained.

Investigators said they know as much as $100,000 was stolen, but there were so many financial records missing they may never know exactly how much was taken or whether the school would have survived if the money wasn't stolen.

The school's financial problems were disclosed last March and the Brevard County School District took over in April. The school was then shut down.

Maer's bond is set at $133,500. Rosario's bond is set at $12,000.

Read More

Hoggetowne Middle School

FORMER CHARTER SCHOOL PRINCIPAL ARRESTED FOR ALLEGED THEFT OF SCHOOL FUNDS; October 14, 2009; Gainsville Sun (FL)

The ex-principal of a local charter school faces felony charges for allegedly spending more than $18,000 in school funds for personal use.

On Tuesday, Gainesville police charged Kristine M. Santos, 38, formerly the principal and president of the board of directors at Hoggetowne Middle School, with grand theft and fraud. She turned herself in Tuesday and was released on her own recognizance.

Last September, Alachua County School District staff went to Hoggetowne to assist the school's new bookkeeper and reported spending irregularities involving a school debit card that Santos used…

A few of the purchases were listed in the complaint. They included approximately $1,500 at Gainesville Health and Fitness for personal training services, an approximately $380 bill at Hilton Hotels Disney and $139.72 at Victoria's Secret.

According to police, school funds were also used to pay off approximately $31,800 in charges on Santos' personal credit card. She reportedly identified approximately $19,593 of those charges as expenditures for the school but could not provide a school-related purpose for the remaining $12,221.11.

Santos told Hoggetowne school officials that she gave her entire credit card bill to the school's accountants and they mistakenly paid the whole bill instead of only the school-related expenses, according to the complaint.

In the complaint, Gainesville Police Detective William Quirk wrote that the standard procedure should be "to submit a request for reimbursement, not to have the bill paid directly by the school."…

Read More

Alexander Hamilton Charter School

EX-DIRECTOR OF SCHOOL FACES THEFT COUNTS; April 26, 2002; The Record (Bergen County, NJ)

The former director of Paterson's Alexander Hamilton Charter School was indicted Thursday on theft charges for allegedly cashing one of the school's checks several weeks after she had quit her post.

Carol Ann Gauthier, 46, left her job on June 27, but on July 18, she cashed a school check made out to her for $600, said William Gradisher, Passaic County chief assistant prosecutor.

A count of attempted theft was also filed because on the same day, Gauthier tried to cash a check for $4,500 at another bank, but officials there flagged the check and school officials were able to stop it, Gradisher said.

Gauthier could not be reached for comment Thursday, but previously she said the school owed her $27,000 in expenses and salary.

Gauthier left her job in a storm of controversy, with Alexander Hamilton board members accusing her of the thefts and of trying to sabotage the school. In August, the board members took Gauthier to court, saying she double-crossed the school during negotiations for a building lease.

School officials said they thought Gauthier was securing the lease for the Alexander Hamilton school, when in fact, she signed the lease for her own charter school, which they said she created on the sly.

Gauthier's charter school, called the Silver Fox Learning Center, never got off the ground, according to state records. The Alexander Hamilton charter school, plagued by fiscal problems, was turned over to the public schools in October to prevent the 250-student, K-5 school from being shut down.

The counts of theft by deception and attempted theft by deception each carry a maximum five-year prison term upon conviction. Court records show that several judgments were filed against Gauthier in the wake of a failed Newark restaurant project, and that she filed for personal bankruptcy.

Read More