Monday, September 16, 2019

Epic Conflicts of Interest

   As noted in the news, Epic Virtual and Blended Charter Schools continue to be investigated by the FBI, OSBI, and State Auditor and Inspector, for embezzlement of state funds, racketeering, and related crimes. The investigations may be hampered by potential "conflicts of interest", however, as acquired information has been slow in coming, as those who could be implicated have a lot of money to lose.
   Those which may have a lot to lose if Epic owners are eventually held accountable for Epic transgressions could be:
   1) Brad Clark, the current legal counsel for the Oklahoma State Department of Education (OSDE). Clark was the attorney for Ben Harris and David Chaney, aka Butch Cassidy and the Sundance Kid, in a lawsuit against the University of Central Oklahoma for withdrawing its contract to be the sponsor of Epic in 2010. At that time he was employed by the Bill Hickman Law Firm which represented Butch and Sundance in 2010. Brad Clark's wife, Tiffany, is currently Epic's Contract Compliance Clerk. Clark contributed $700 to Joy Hofmeister's re-election campaign in 2018. Does Clark have a conflict of interest and a lot to lose if Epic players are indicted? Remember, Brad Clark was the OSDE employee who handed over Oklahoma teachers' personal information to Epic only a few months ago.
   In a July 12, 2019, Tulsa World article Brad Clark is quoted as saying that, by law, blended learning charter schools (such as Epic's Blended Learning Center) "are subject to the same attendance requirements as traditional charter schools". On August 13, 2019, in a correspondence to a State Senator, Clark contradicted his earlier statement by saying "It appears that Epic-Rose State (BLC) has adopted an attendance policy that parallels that which has been adopted by Epic One on One Virtual as required pursuant to 70 OS 3-145.8." However, the Contract for Epic Blended Charter-Rose State College 2017-2022 requires compliance to 70 OS 3-136.
70 OS 3-136 (11) requires compliance to 70 OS 1-109: 180 Instructional Days or 1080 hours.
70 OS 1-109 requires compliance to 70 OS 1-111: 6 Hour school day.
   In a September 20, 2019, Tulsa World article Epic Charter Schools sends state senator 'cease and desist demand' letter, "An attorney for Epic Charter Schools issued a 'cease and desist demand' letter to a state senator who has been raising questions about the legality of the school's student attendance practices..." An excerpt from the letter reads - "You are hereby put on notice to cease and desist all defamation of Epic, Its staff and false accusations related to the school." Epic attorney Bill Hickman wrote the letter. Brad Clark, the OSDE legal counsel, was employed by Bill Hickman before being employed by the OSDE. Could this be the conflict of interest involved when Clark readily handed over teacher personal information to Shelly Hickman, assistant superintendent at Epic and the wife of Bill Hickman, a few months ago?
   When public schools require legal guidance to answer questions or provide a course of legal action, they usually employ a law firm or attorney. Since most schools retain legal expertise to address legal issues, and since public schools are run by elected school boards - boards retain the soul authority to direct legal action. Epic Public Schools has two School Boards to direct such legal action - Epic One on One Virtual Charter School Board and Epic Blended Charter School Board. The (Bill) Hickman Law Group may be on legal retainer with either or both of Epic's Boards to address legal issues as indicated in the 'cease and desist demand letter', but nowhere can it be found in either Board's minutes that the Hickman Law Group was directed to address the Epic legal issue outlined in the letter. If the Hickman Law Group is acting without the authorization to act, and spending taxpayer dollars without Board authorization, does this constitute fraudulent correspondence? If the Hickman Law Group has used the US Postal Service to deliver such unauthorized legal correspondence or action against a State Senator - does the correspondence or threatened legal action constitute federal mail fraud? Many school law experts believe the answer to both questions is yes.
   Another question which may only be answered by the Attorney General's office or a district attorney is: The Hickman Law Group, retained by Epic Public Schools, has evidently acted without appropriate board approval. Does this act constitute a violation of the Open Meetings Act, 25 O.S. Sections 301-314? Since the Hickman Law Group may be retained by private entities (Ben Harris and David Chaney), it may not constitute a violation of the Open Meetings Act. Once again, though, The Hickman Law Group claims to be retained by Epic Public Schools, not Harris or Chaney, so should be directed by the Epic School Board(s). It also appears that no authority has been provided to the superintendent of Epic to direct such legal activity.
   2) Joy Hofmeister, State Superintendent of Schools. Fact #1 - Since 2014, Joy Hofmeister received almost $50,000 from Ben Harris, David Chaney and their spouses, and Epic lobbyists, in campaign funds to favor Epic in all education decisions. Fact #2 - According to a Tulsa World article on July 25, 2019, Swink school district facing forced consolidation says Epic leader offered a rescue: 'I'm in pretty good with Joy'. A Swink school board member is quoted "I got a call from Ben Harris (of Epic) about two weeks ago. He had heard that we were in trouble, and he was offering the possibility to annex into Panola, the little district they already control. I told him, I'm a one man board. Everyone else has resigned, and I can't make any decisions. The (state) Department of Education is going to destroy us. He (Ben) said, 'If you're interested in this, I'm in pretty good with Joy (Hofmeister). I can get this done."
   We have questions for Joy Hofmeister or Brad Clark (OSDE legal counsel): The Statewide Virtual Charter (school) Board has recently approved 22 additional learning and testing sites for Epic, which includes Blanchard and Durant. Are these Epic Public School buildings exempt from property taxation? Does Epic Public Schools pay its rent using Oklahoma tax dollars?
Update October 9, 2019 - Prior to the election of Joy Hofmeister as State School Superintendent in 2014, Janet Barresi (prior State Superintendent) directly told Ben Harris and David Chaney (Epic co-owners) that they could not open new Epic Learning Centers (such as currently opening in Blanchard and Durant) using tax payer dollars. Our question is: Has Joy Hofmeister told them the same thing?, or was Ben Harris accurate when he said "I'm in pretty good with Joy"? An Oklahoma State Department of Education insider told us that it's all related to campaign donations - campaign donations to legislators who may have passed favorable legislation for allowing Epic to open the public schools. What the insider didn't say was "it's all related to campaign donations to Oklahoma Legislators and the State Superintendent". We're left to wonder if it is?.. or isn't?
Update October 22, 2019 - In an interview with 'News 9 Investigates' on Thursday, October 17, Joy Hofmeister is quoted as saying "To see those (tax) dollars being used, not to recruit new teachers with advertising dollars, but aggressively recruiting students to build a business, that is the piece that I think is difficult to square -- that's what I have a problem with." Evidently, Ben Harris is not so "in pretty good with Joy" as he thought he was on July 25. The $50,000 in campaign donations that Ben and company provided Joy is looking like a big waste of money. It won't be long before Ben pens a letter to the Daily Oklahoman decrying how Joy Hofmeister is misleading state tax payers. David Chaney, Epic co-owner, did the same thing to Mary Fallin in 2012, when she opposed Epic racketeering at that time.

Tuesday, September 3, 2019

More Epic Unanswered Questions

   By now most people know the OSBI, FBI, Oklahoma County District Attorney's office, and maybe the Securities Commission has several questions for Epic Virtual Charter Schools. Questions concerning racketeering, embezzlement of state funds, falsification of records, ghost students, etc., are all questions that Epic will eventually answer. We have several education related questions that have been previously posed, however, and are still awaiting answers.
1) Article 10, Section 15 of the Oklahoma Constitution states "... the credit of the State shall not be given, pledged, or loaned to any individual... nor shall the State.. make donation by gift...". In addition State Law 70-16-121 states "... all textbooks (and computers) shall be owned by such (school) districts...". How does Epic explain gifting more than 6,000 laptop computers and more than $3,000,000 to individuals?
2) Epic has reported class sizes of 25 to 30 students per teacher. Five (5) Epic high school teachers are reported as having over 2,000 students each. Epic, please explain?
3) State Law prohibits a school of Epic proportions to exceed 5% in administrative costs. The August 2017 auditor's report, however, reflected that Epic accrued 13.28% in administrative costs. How did Epic avoid a penalty for exceeding the limit for administrative costs?

While certainly not as important as the questions the OSBI and FBI has for Epic, our questions concerning education also remain unanswered.