Education for Personal Profit? Charter School Accused of Diverting Funds to Founders’ Pockets

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by Barry Burch Jr.

The District of Columbia’s Attorney General (AG) has filed suit against a DC Public Charter School and its President, Chief Operating Officer, and General Counsel, for illegally diverting school funds into their own businesses and ultimately their own pockets.


These three individuals respectively, Dr. Donna Montgomery, Dr. David Cranford, and Paul Dalton, were indicted for creating two separate corporations (EES and EEMC) that “provided” services to the Options Public Charter School (OPCS).  A local DC anchor, JC Hayward, is also allegedly involved.  Hayward was on the Board of Trustee’s and is said to have approved bonuses and contracts to EES and EEMC.

The complaint filed by the Attorney General alleges that the Defendants engaged in self dealing; culminating in a 2.8 million dollar scheme this year.  OPCS is a public charter school that receives funding from the District for its students.  The record claims that Defendants created two corporations which it then awarded contracts to for the provision of services to OPCS.  Through these service contracts, the Defendants approved and made a series of “unjustified” payments, which “improperly” lined their pockets.  An example of these unjustified transactions is OPCS payment to EES for student transportation in the amount of $ 981,250.00; more than five times the amount OPCS paid for the same services the year before.


In February of 2013, the $ 2.8 million dollar scheme is alleged to have started once the Defendants became aware that OPCS would receive a $ 2.8 million increase in its funding for students with disabilities.  Defendants are suspected to then have entered into a contract with EEMC for “management services” with a pricetag of, ya, you guessed it, $ 2.8 million dollars.  Supposedly, the “management services” contracted for were currently being performed by OPCS staff, if they were even being performed at all.  The money is claimed to have gone to the Defendants.  By July 2013, all three Defendants resigned from OPCS.

The Attorney General has asked the court to freeze all assets of the Defendants, cancel any contracts between OPCS and EES or EEMC, and place OPCS in a receivership, aka give them a guardian/custodian to watch over the finances.

Barryburchjr@gmail.com

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4 Responses to Education for Personal Profit? Charter School Accused of Diverting Funds to Founders’ Pockets

  1. Nothing new here!

    Clearwest Dot Biz
    October 4, 2013 at 11:46 pm
    Reply

  2. This bad greediness is not new, there is a Black owned Charter school that has been in existence for more that 25 year and have the same temp old trailers on the property in San Bernardino county. Millions have passed the administrations hands but looking at the campus it is not reflected.

    The director has gone to other countries and forced staff and students to see how well they enjoyed the trip. There are no new books, desks, technology equipment and nothing is being done; even more, questionable staff have previously been hired (felons).

    Joyce
    October 5, 2013 at 1:11 am
    Reply

  3. jaycee although she has a remarkable history greed can take over at annytime she is suppose to st standards and hold people accountable ……She asked the guestions and investigate this type of behavior so its no way she was in the blind she’s too smart for that or is she stupid at the end of the day……… very sad a fallen leader…..

    Tajuana Dinkins
    April 9, 2014 at 10:46 am
    Reply

  4. This paragraph is really a pleasant one it assists new internet users, who are wishing for blogging.

    Breanna
    May 13, 2014 at 3:40 pm
    Reply

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