Tuesday, July 30, 2019

For the Epic Love of Money

   I've received several messages from parents over the past year who are concerned about their children's education. The concerns have always been about Epic Virtual or Blended Charter Schools, and have come from all areas of the state. Also, the questions and concerns have usually been of two different varieties. For instance, one parent lamented that even though his or her child had received A's and B's while attending Epic, the child was suddenly and without explanation, dropped from the roll. The question for me was "Why?". I do not know the answer, but I suspect it is about"money". The parent suspects it is because the child doesn't test well. It could be a little bit of both. When an Epic student is dropped from the rolls, the school may have already received the funding to educate said child. The child is not counted as a full academic year (FAY) student if dropped, so doesn't count against the school's test scores and A-F letter grade. The child is usually allowed to re-enroll, and the cycle starts over again - 1) child enrolls 2) Epic receives money 3) Epic drops child, no FAY 4) child re-enrolls. It's not only a cycle, but a vicious cycle - a money making racket.
   Another parent contacted me concerned that he or she received a phone call from Epic, even though Epic was never contacted by the parent. Epic asked the parent if enrollment in Epic was to proceed. (The parent had been home-schooling the student, so was not enrolled in any public school at the time.) The parent was also concerned that Epic may have the ability to "drop" the student from enrollment at another public school, without the parent's knowledge or consent. While I don't think Epic has that authority, nothing surprises me any more. My suspicion is that Epic's recruiting antics are also all about money and once again involves the Epic racketeering cycle - 1) child enrolls 2) Epic receives money 3) Epic drops child 4) child re-enrolls 5) Epic receives more money...
Follow the money!

Monday, July 29, 2019

Willful Blindness and Racketeering

Willful blindness is a term used in law to describe a situation in which a person seeks to avoid civil or criminal liability for a wrongful act by intentionally keeping himself or herself unaware of facts that would render him or her liable. Individuals may be willfully blind for a number of reasons including - the individual has received money to look the other way, or the individual is a silent partner in illegal activities and doesn't want exposure.

"The world will not be destroyed by those who do evil, but by those who watch them without doing anything" - Albert Einstein. "Those who watch without doing anything" may often be scared to speak up, but are not willfully blind. Prior to WWII, there were a number of people who did not speak up as the Nazis carted their friends off to concentration camps. They were afraid to speak out against the barbaric practice, as doing so may have meant certain death or internment. Martin Niemoller, who spent seven years in a Nazi concentration camp, penned a poem "And there was no one left" in regret of not speaking out.

While not nearly as serious nor life-threatening, the situation with the alleged racketeering and embezzlement involving Epic Blended and Virtual Charter Schools still may incur willful blindness on the part of some individuals.

Satire may be described as the use of humor, irony, exaggeration, or ridicule to expose and criticize people's stupidity or vices, particularly in the context of contemporary politics and other topical issues. Satirical musings are always based on fact though, and the humor/ridicule is often utilized as a way to keep from crying. A satirical view of the conversation that may have taken place between Epic officials and those purchased individuals is needed to prevent depression. First, the facts: The Tulsa World reported that several Oklahoma elected officials willfully accepted more than $200,000 in campaign donations from Epic officials this past year. Among those willfully accepting taxpayer dollars were the State Superintendent, Joy Hofmeister (more than $50,000) and the Governor, Kevin Stitt (more than $10,000). Several others, including the Attorney General, an Oklahoma County District judge, and Oklahoma State Lawmakers, willfully accepted thousands of dollars from Epic officials. In the opinion of many Oklahomans - these tax dollars were paid to the recipients to be willfully blind of Epic's actions. It is important to note at this point that Ben Harris (Epic co-owner) stated to a small school board member "I'm in pretty good with Joy" as he offered a rescue for the small school. It is also notable that both Harris and David Chaney (Epic co-owner) may be seen in a photo with Kevin Stitt, looking like the three musketeers. It's sometimes sickening what money can buy. Noticeably absent from the Epic payroll is the State Auditor and Inspector, Cindy Byrd, and the Oklahoma County District Attorney, David Prater.

The setting for the conversation that could have taken place between Epic officials and those accepting campaign contributions is the Epic war room (probably the basement of the Epic corporate office building) -

Harris (co-owner of Epic, roll call) - Joy Hofmeister! (replies "here"), Governor Stitt! (replies "Sir, yes sir!), Judge Dred! (replies "present"), Cindy Byrd! (silence), David Prater! (silence)...
Harris (addressing David Chaney, co-owner of Epic) - Where are Byrd and Prater?
Chaney - We did not pay those two to be here.
Harris - Why not?
Chaney - We offered, but neither would accept tax dollars.
Harris - Everyone has a price... Did we not offer enough?
Chaney - I guess not, so we haven't tied up all the loose ends.
Hofmeister - Benji, I would appreciate you not saying "I'm in pretty good with Joy", the next time you're trying to takeover a small traditional public school.
Stitt (to Ben Harris) - How come I only got $10,000 and Joy got $50,000?
Harris (in exasperation) - Because you haven't earned it yet..
Stitt - I did say "I don't think your state funding needs to be changed".
Harris - I know.. That may get you a raise, but not $50,000.
Stitt - How about if I get you some funding from the Indian Casinos? Will that be worth the big bucks, like Joy?
Harris - We'll see...
Hofmeister - Speaking of raises.. I deserve more "willfully blind" money. It's getting harder and harder to keep pleading ignorance... and $50,000 is not enough to be "in good with Joy".. Maybe $100,000, and I'll consider it.
Chaney - Just keep working hard Governor, and soon you'll be able to afford a home in Cancun.. like me.

Of course this dialogue is fictitious but certainly could have taken place, as the facts are the facts... To follow the money, click here..



Thursday, July 25, 2019

Epic Has Your Personal Information

   Many of Oklahoma's 40,000 teachers are disturbed, and rightfully so, that traditional public school hater groups such as the OCPA - has teacher personal information. Just this past week, many traditional public school educators received - through their personal mail or personal e-mail accounts - a message from Ray Carter, journalist for the Oklahoma Council of Public Affairs. Mr. Carter begins -

When news broke that the Oklahoma State Bureau of Investigation had filed a search warrant accusing Epic Charter Schools of receiving state funding for "ghost students" who did not attend school through the online provider ..., it understandably drew concerns from all quarters.

But as that investigation proceeds, it has indirectly highlighted a less well-known fact: Many traditional public schools, all across Oklahoma, are receiving funding to educate similar "ghost students" who no longer attend those schools...

   Before we address the "big lie" in the second paragraph above, we should determine how a "teacher hating group" acquired teacher personal information. The source was either Shelly Hickman, Epic Assistant Superintendent, who originally acquired the teacher information from Brad Clark, OSDE General Counsel, through an "open records" request several months ago - or the OSDE and Joy Hofmeister... through an "open records" request. Bear in mind that the OSDE was not required to provide the teacher personal information, as stated by Brad Clark, until a judge ordered it - but did so anyway. Epic has provided at least one Oklahoma County District Judge with campaign funds, so a judge may have eventually ordered the release of the personal teacher information, but maybe not. It is also important to note the connections and conflicts of interest in this case - Previous to being employed by the OSDE as Joy Hofmeister's attorney, Brad Clark was an attorney for Bill Hickman's  private law group. Bill Hickman is the husband of Shelly Hickman, Epic Assistant Superintendent. And then there's this: Ben Harris, Epic School owner and being investigated by the OSBI for "racketeering", says "I'm in pretty good with Joy" while offering to "rescue" Swink school district from consolidation. Another connection?

The Big Lie:
   Ray "Ray Ray" Carter was an editorial columnist for the Daily Oklahoman, before being employed by the OCPA to post negative traditional public school articles, some of which are lies. He is also the husband of Jennifer Carter, Janet Barresi's former Chief of Staff. Oklahoma State Senator Ron Sharp, a public school teacher for 38 years, knows "a thing or two" about public school funding and pyramid schemes in public schools, responded to Ray's article:

Yes Sir! Your article was excellent with contained valid points to consider.

However, a traditional public is attempting to provide a service the public demands the highest of standards. And, rightfully should be anticipated by our State taxpayers. They want a positive return on their investment!

However, there is not a profit motive in the traditional public schools. It is all to provide the best public education possible within the level of funding provided.

The apparent motive for the OSBI investigation into Epic Youth Services LLC appears to be the profit to the for-profit company's owners.

Dual enrollment in Epic and a private school, as reported in the OSBI document, is by willful intent to commit fraud and the subsequent embezzlement of State dollars, if the allegation(s) is proven.

A traditional public school superintendent, nor the teachers in the district, recruit students. And neither receive a financial bonus for the recruitment of new students...

What I have not seen before is a pyramid scheme so skillfully created as this appears to be with Epic! The apparent use of public funds to make its for-profit managers more of a profit is a masterful scheme! ...

State Senator Sharp then ends his response to Ray Carter with: I appreciate your diligence to investigative journalism. Thank You!

   If Ray Carter is not intentionally lying about traditional public schools having ghost students, then he is woefully ignorant about public school funding. I believe he's not ignorant at all, so that only leaves one option... Follow the money!



   

 

Tuesday, July 23, 2019

More Epic Connections - A Deeper Investigation

   We've noted the multitude of connections and potential conflicts of interest between Epic and elected officials, employees, and attorneys. For instance, Brad Clark, General counsel for the OSDE, who provided teacher personal information to Epic, once worked for Epic. The State Superintendent of Schools, Joy Hofmeister, was provided more than $50,000 in campaign donations from Epic officials to see things their way, and even the Governor (Kevin Stitt) was provided more than $10,000. As a matter of fact, Governor Stitt urged Oklahomans to not pass judgement on the alleged racketeers, Harris and Chaney, until all the evidence is in.
   As we follow the money, some evidence may be noted above. It is noted by the OSBI that Chaney and Harris split $10,000,000 in profits from their alleged racketeering scheme. The profits came at the expense of our Oklahoma school children in the form of public tax dollars that every Oklahoman pays. While it is unclear just how these personal profits were spent, some went to elected officials' campaigns. The money may be traced from state aid to public schools, to Chaney and Harris, and then to specific elected officials. The tax dollars were in effect - laundered through the Chaney and Harris personal accounts to make the donations appear all perfectly legal. The sad reality is that state aid for students was donated to both Hofmeister and Stitt. A photo of Governor Stitt, David Chaney, and Ben Harris can be seen on Chaney's facebook page, and has been dubbed "The Three Racketeers" by some. FOLLOW THE MONEY...
   More potential evidence: We received an anonymous message last week that in part stated "When the investigation first started several years ago, Joy (Hofmeister) specifically asked some of the (SDE) employees if they could withhold information from the OSBI about Epic." While no one can be sure if the statement is true, it is nonetheless very disturbing. Follow the money...

Friday, July 12, 2019

A State of Oklahoma Question

   In addition to the several questions asked of EPIC officials in previous posts, Senator Ron Sharp (representing the State of Oklahoma) has posed another question for EPIC and the Oklahoma State Department of Education (SDE). Before we repeat Senator Sharp's question (and receive no answer, as usual), a look back at the last several months of EPIC and SDE records requests may be helpful.
   In March, Senator Sharp requested the SDE provide the financial records of EPIC in regards to his work on Senate committees studying EPIC expenditures and revenue. After three months of hearing nothing from the SDE, Senator Sharp requested an update on progress fulfilling the open records request. The SDE reported that they were working on it, but the State Senator would be charged $850 for the labor involved. It is important to note that state agencies are allowed to charge a fee for providing open records documents to private citizens and companies, and often ranges between 25 and 50 cents per page. The requested documentation of EPIC's financial transactions in this case, was requested by a public official charged with the financial well-being of the State of Oklahoma - a state senator. The SDE official which has typically responded to open records requests is Brad Clark, SDE General Counsel. After three and a half months of delays and stonewalling, it is assumed the SDE provided the requested documentation at the end of June.
   Around June 20, 2019, it became apparent to many Oklahoma teachers that some personal information had been disclosed to EPIC, as many if not all of Oklahoma's approximately 40,000 teachers and educators began to receive recruiting brochures in the mail and ads to their personal e-mail accounts. The Frontier reported that an "open records" request had been made to the SDE from EPIC which requested the personal mail and e-mail accounts for all public educators. The EPIC official responsible for requesting the addresses and accounts was the EPIC Communications Director, Shelly Hickman. If EPIC was charged 50 cents for processing and providing the 40,000 records, it may have cost $20,000 for all educator records, although it is still unclear just what the SDE charged EPIC.
   What is clear, however, is that the SDE responded to the two open records requests quite differently, treating a state congressman's request with delays and even disdain, but EPIC's request with compliance and secret expediency. The answer to the question of why the responses by the SDE were so diametrically different may be found in the personal connections to the SDE and EPIC. Brad Clark, chief legal counsel for the SDE and Joy Hofmeister, are responsible for deciding what open record requests can be filled and those that cannot. Clark was formerly employed by Bill Hickman's law firm before being hired by Joy Hofmeister and the SDE. Bill Hickman is the husband of Shelly Hickman, EPIC Communications Director (and reponsible for EPIC open records requests). Shelly Hickman formerly worked for the SDE in the same role she now has for EPIC. Is anyone really surprised that the two open records requests were treated differently? Follow the money...
   Now, to repeat State Senator Ron Sharp's question: Why did the SDE provide allocations to EPIC Blended Charter School for grade levels the school has publicly acknowledged did not exist for the school years 2017-2018 and 2018-2019? The revelation that EPIC Blended School received public funding for students not enrolled, sounds familiar with the OSBI investigation into EPIC Virtual Charter Schools for receiving public funding for students enrolled in private schools and EPIC. Again, follow the money.. The SDE has privately acknowledged that it did provide the funding for imaginary grade levels and students enrolled in both private schools and EPIC, but seems to blame the potential misappropriation of public funds on the lowly regional accreditation officer (RAO) who approved the student count (ADM). If that is Joy Hofmeister and Brad Clark's defense of possible misappropriation of public funds, then the RAO should be fired. It should not absolve the SDE leadership of responsibility though.
   We have another question for Shelly Hickman, Communications Director for EPIC: With the knowledge that EPIC Blended Charter received funding for non-existent grade levels and subsequent student ADM, why didn't EPIC return the misappropriated funds? We have no doubt this question will not be answered along with Senator Sharp's question, until someone more important than a public educator or state senator asks. Follow the money...
   An article in the Tulsa World raised some more questions for EPIC and the SDE - Tulsa World reporter Andrea Eger asked the SDE : (Paraphrased) What are the state requirements for (EPIC) Blended Learning Center student attendance? Brad Clark, SDE General Counsel, responded that BLC is subject to the same attendance requirements that brick and mortar (traditional) schools are. Emily Long of Price Lang Consulting (EPIC's outsourced consulting firm) responded to Brad Clark's answer by saying "that statement is wrong". OK, I have a question: Who is lying? the SDE? or EPIC? Follow the money...
   SDE Accreditation Officers (RAO) are those employees which routinely monitor public school reports for accuracy and mistakes. The reports audited include the grade level and student membership for every public school in the state. If only one student has been coded incorrectly by a school - the RAO always catches the mistake and corrects it, so that no school receives more funding than it should or less. All public schools receive the exact amount of funding through the formula based on the Average Daily Membership (ADM) for each. Schools do not receive state or SDE appropriated funding until the RAOs audit membership reports... until now. Evidently EPIC has received maybe millions of dollars for students they don't have. If school RAO's catch even the slightest miscalculation in school membership reports, how did this EPIC mistake get by the SDE? Is it misappropriation by the SDE... and complicity by EPIC? or intentional misleading reports by EPIC and complicity by the SDE? Either way, crimes could have been committed. Follow the money..
Update July 17, 2019: ... and then there's this... What other entities could be implicated?
Update July 18, 2019: Joy Hofmeister, State Superintendent, stated that the OSBI investigation and subsequent potential indictment of racketeers and embezzlers is "very serious and disturbing". She also stated that the SDE stands ready to cooperate fully in the OSBI investigation into embezzlement and racketeering. To absolve the SDE of any responsibility of the racketeering or embezzlement charges, it should prove that it had no prior knowledge of the shenanigans of the owners, Chaney and Harris. Several educators and a State Senator believe the SDE had prior knowledge of these crimes, but failed to acknowledge or report to law enforcement. The SDE 'standing ready to fully cooperate with the OSBI' in the matter may mean that someone may be thrown under the school bus...
Update July 19,2019: Racketeering is only one of the crimes being investigated by the OSBI during its EPIC sweep. "A racket, according to the current common and most general definition, is an organized criminal act in which the criminal act is some form of substantial business, or a way to earn illegal money either regularly, or briefly but repeatedly... However, originally and often still specifically, a 'racket' referred to a criminal act in which the perpetrator (perp) or perps fraudulently offer a service to solve a nonexistent problem... Conducting a racket is racketeering. Particularly, the potential problem may be caused by the same party (of racketeers) that offers to solve it, but the fact may be concealed, with the specific intent to engender continual patronage for this party." (wikipedia). "Profiteering is a pejorative term for the act of making a profit by methods considered unethical" and goes hand-in-hand with racketeering.
   We may apply EPIC's business model for public education to the racketeering and profiteering definitions to see if the glove truly fits, and if it does, you must not acquit. In the EPIC case, the nonexistent problem to be solved is the "poor" public education being forced on students of traditional public schools. The service being offered to solve the nonexistent problem is the EPIC model of schoolin'. EPIC has engendered continual patronage with the running of its nonstop TV, Radio, and social media ads. The perps in the EPIC case may be Chaney and Harris, EPIC owners, but may also be several others receiving unethical profits. Those "others" could be the several elected officials who've received almost $200,000 in campaign donations from EPIC, and would include the Oklahoma State Superintendent of Schools, the Oklahoma Attorney General, an Oklahoma County district judge, many Oklahoma State Representatives and Senators, and even the Governor. While it is doubtful that all involved in the EPIC case will be indicted on embezzlement or racketeering, I'd still be very worried if I unethically profited at the expense of Oklahoma taxpayers...
Update July 21, 2019: Continued...