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Aug 2019 Page resized
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Stillwater NewsPress
OKLAHOMA VIEWPOINTS  TAHLEQUAH DAILY PRESS
Epic investigation warranted
Any agency, entity, orga-
nization or school that gets
taxpayer funds should be sub-
jected to oversight by the gov-
ernmental body that allocates
the money. That should be the
case for Epic Charter Schools,
whose founders stand accused
of embezzling state funds and
collecting money under false
pretenses, mainly through
enrolling non-existent “ghost
students” to boost numbers.
Cherokee County residents
have long been avid support-
ers of public schools. We have
eight K-8 schools here, and
three that take students all
the way through 12th grade.
And for the most part, they all
do an exceptional job, which is
why even the most prominent
area families send their kids to
these institutions, rather than
driving them to Tulsa for a
private education....
Sometimes parents have
other reasons, besides religious
or cultural, for not sending
their children to public schools.
Perhaps they fear violence or
bullying they’ve read about
on some campuses. Or maybe
they want more direct control
over what their kids learn and
whom they associate with, and
feel they can get that through
a virtual charter school.
Parents should always have
the right to choose a path of
education for their children,
provided that education meets
certain standards. Some would
argue, however, that they do
not have a right to insist that
public funds pay for private
education. Many parents who
do choose the private option
accept the fact that their tax
money will fund public insti-
tutions. They realize the Okla-
homa Constitution guarantees
an education for all kids, and
the vast majority either can’t
Property of OPS News Tracker and members of the Oklahoma Press Association.
afford private schools, or their
parents must work and thus
cannot be their primary ed-
ucators. There are also some
parents who would like the
state to cut them checks for
home-schooling their kids, but
that would ultimately dry up
the well for public schools.
If taxpayers are contributing
to the operation of a school, the
public should have assurances
that its hard-earned money
isn’t being used for nefarious
purposes. That applies to both
traditional public schools, and
so-called “nonprofit” charters
like Epic. These institutions
should be held to the same
standards and the same ac-
countability as public schools,
and their records should be
just as transparent.
Gov. Kevin Stitt and State
Superintendent Joy Hoffmeis-
ter have called for a probe of
Epic, and they’re not the first
to do so. That was a prudent
move on their parts, especially
since Epic officials funneled
money into their political
campaigns. That investigation,
and how it’s handled, will go
a long way toward showing
Oklahomans where the true
loyalties of elected officials lie.
Epic officials are innocent
unless and until proved
guilty, but if the investigation
uncovers wrongdoing, the
harshest penalties should be
levied against the school, its
founders, and if need be, the
board that overlooked the
problems. That would include
the possibility of shutting it
down. There are always op-
tions for parents who choose
online learning at home, and
those that are answerable to
their patrons and the public
are the only ones that should
be serving the young people of
this state.
 The Blanchard News

Aug
08

2019

Page
A009
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From the Desk of Dr. Jim Beckham
resized Superintendent of Blanchard Public Schools
40%
Epic Pyramid Exposed
We first recognized the “Epic pyramid duck” in a column on
July 7, 2018. Illegal pyramid schemes offer no products for sale,
but rely on recruiting more and more investors to keep the pyramid
going. The investors are Oklahoma tax payers, and the recruiters
are teachers and enrolled students who are paid “bonuses” for
recruiting more students. Each student enrolled is worth about
$5,000 to Epic Virtual and Blended Charter Schools. If Epic enrolls
about 22,000 students, it receives about $110 million in state aid,
or profits. The pyramid scheme is simple, but ingenious - the base
of the pyramid are the recruiters, teachers and students who receive
bonuses for each new student recruited. Enrolled students receive
$200 for each “referral” and teachers receive $400 for each student
referral. When a new student enrolls in Epic, one question on the
enrollment form is “Who referred you to Epic?”. The new student
simply names the teacher or student who referred him or her. A
student gets $200 added to his or her “education fund”, which is
nothing more than a checking account, and a teacher gets a $400
bonus for each student.
The next level up on the pyramid would be the mid-level
administrators, which include team leaders and principals.
Advancing upward one more level include the upper level
administrators, superintendent, assistant superintendents, lobbyists,
and attorneys. Finally, at the peak of the pyramid sits the owners,
Ben Harris and David Chaney. Also included, outside the pyramid,
but very important to its structure are the enablers, elected officials
- State Reps, Senators, State Superintendent of Schools, Governor,
etc., who receive a “cut” for enabling legislation or willful blindness.
A column describing “willful blindness” can be read here.
This last week, in addition to visiting with parents of Epic
students, I discussed the “Epic Pyramid Duck” with a former Epic
teacher. The teacher told me that he or she was just fired from Epic
even before the first year of employment was complete. The teacher
had received another job in a traditional public school, so felt free
to speak. Teacher told me that he (or she) was on the “do not re-
hire” list because of unspecified reasons. It’s a fact that first year
teachers are not afforded the same “due process” rights as veteran
teachers, so no reason for being fired must be given. The belief is
that he or she was fired because a large amount of bonus money
was owed (80 students at $400 per student = $32,000), and Epic
would not be forced pay it if the teacher was fired before the end of
the year. The 80 students the teacher was responsible for recruiting
and teaching, were simply reassigned to other teachers (who would
not receive the bonus). The teacher should have received
approximately $38,000 regular salary + $32,000 bonus = $70,000.
The “bonus money” was simply bumped up the pyramid, probably
to Harris and Chaney, after the teacher was fired. The teacher
(bottom level of the pyramid) probably would have earned more
than several mid-level administrators (next level up), and the
pyramid tends to fall apart when that happens, hence the firing.
A typical $5,000 student is distributed on the pyramid with the
teacher (first level) receiving about $800, the student (first level)
receiving about $900 - $1,000, second level administrators receive
about $1,000, third pyramid level administrators - $1,700, and the
two peak owners receive about $500 per student, or $11 million
total!
By firing the aforementioned teacher, the Epic owners payed
themselves about $32,000 more... Think about that - if it looks like
a duck, walks like a duck, and quacks like a duck, then it’s a duck,
or pyramid scheme in this case. Follow the money...

Property of OPS News Tracker and members of the Oklahoma Press Association.
 Clip
Aug 2019 Page resized
13 A007 68%
The Ardmoreite
Oklahoma latest to
grapple with online
school problems
OKLAHOMA CITY
(AP) — When two
tech-savvy Oklahoma
men launched their vi-
sion for an innovative
charter school in 2011
that students could at-
tend from home, the tim-
ing was perfect.
Republicans had just
extended their majori-
ties in the Legislature,
taken control of every
elected statewide office
and installed a new state
superintendent of public
instruction who was ea-
ger to embrace new ideas.
Epic Charter Schools,
which has no school-
house and serves pre-kin-
dergarten through 12th
grade students who at-
tend online, has exploded
in growth in the eight
years since it launched
and now boasts an en-
rollment that rivals the
biggest districts in Okla-
Property of OPS News Tracker and members of the Oklahoma Press Association.
homa. Last year, the
school reported more
than 21,000 students and
received nearly $113 mil-
lion in state funding. But
those numbers are now
coming under scrutiny
from state investigators
who revealed last month
they are looking into
whether the school’s two
founders, David Chaney
and Ben Harris, artifi-
cially inflated the number
of students and pocketed
millions of dollars ille-
gally.
While the bulk of state
money pays for teacher
salaries and benefits at
Epic, Chaney and Harris
own a for-profit company
that manages the school
for 10% of its overall
revenue and have made
millions of dollars on the
endeavor. With a glitzy
advertising campaign,
the school attracts more
This July 19, 2019 photo shows An Epic Charter
Schools office in Oklahoma City. ASSOCIATED PRESS
students every year.
No charges have been
filed, but an Oklahoma
State Bureau of Investi-
gation agent wrote in an
affidavit for a search war-
rant that the men recruit-
ed and enrolled “ghost
students” who received
little to no instruction.
Many of these students
were home-schooled or
attended private school,
but they were recruited
by Chaney and Harris to
also enroll in Epic, the
investigator wrote.
Neither Chaney nor
Harris responded to re-
quests for an interview,
but they released a state-
ment in which they de-
nied wrongdoing and
disputed the allegations.
“We are confident the
facts will once again
vindicate our team,” the
statement read.
The “once again” refers
to a fraud investigation of
Epic that the OSBI start-
ed several years ago at the
behest of then-Gov. Mary
Fallin. Findings were re-
ferred to the attorney
general’s office, but no
charges were brought. A
spokesman for Attorney
General Mike Hunter
said the case never was
closed.
 The Ponca City News
Aug
13 PAGE 10–THE PONCA CITY NEWS, TUESDAY, AUGUST 13, 2019
2019
Page
Oklahoma latest to grapple
0010
Clip
resized
with online school problems
OKLAHOMA CITY (AP) —
49% When two tech-savvy Oklaho-
ma men launched their vision
for an innovative charter
school in 2011 that students
could attend from home, the
timing was perfect.
Republicans had just
extended their majorities in
the Legislature, taken con-
trol of every elected state-
wide office and installed a
new state superintendent of
public instruction who was
eager to embrace new ideas.
Epic Charter Schools,
which has no schoolhouse
and serves pre-kindergar-
ten through 12th grade stu-
dents who attend online, has
exploded in growth in the
eight years since it launched
and now boasts an enrollment
that rivals the biggest dis-
tricts in Oklahoma. Last year,
the school reported more than
21,000 students and received
nearly $113 million in state
funding. But those numbers
are now coming under scru-
tiny from state investigators
who revealed last month they
are looking into whether the
school’s two founders, David
Chaney and Ben Harris, arti-
ficially inflated the number
of students and pocketed mil-
lions of dollars illegally.
While the bulk of state
money pays for teacher sal-
aries and benefits at Epic,
Chaney and Harris own a for-
profit company that manages
the school for 10% of its over-
all revenue and have made
millions of dollars on the
endeavor. With a glitzy adver-
tising campaign, the school
attracts more students every
year.
Chaney and Harris also
opened up their wallets to
prominent politicians, donat-
ing more than $160,000 almost
entirely to Republican candi-
dates in the last two election
cycles, including the gover-
nor, state superintendent and
attorney general. Epic also
Property of OPS News Tracker and members of the Oklahoma Press Association.
operates in California, where
it has more than 500 students
from five counties. A con-
tract in Texas was put on hold
because of the ongoing probe
in Oklahoma.
No charges have been
filed, but an Oklahoma State
Bureau of Investigation agent
wrote in an affidavit for a
search warrant that the men
recruited and enrolled “ghost
students” who received lit-
tle to no instruction. Many
of these students were home-
schooled or attended private
school, but they were recruit-
ed by Chaney and Harris to
also enroll in Epic, the inves-
tigator wrote.
Neither Chaney nor Harris
responded to requests for an
interview, but they released
a statement in which they
denied wrongdoing and dis-
puted the allegations.
“We are confident the facts
will once again vindicate our
team,” the statement read.
The “once again” refers to
a fraud investigation of Epic
that the OSBI started several
years ago at the behest of
then-Gov. Mary Fallin. Find-
ings were referred to the
attorney general’s office, but
no charges were brought. A
spokesman for Attorney Gen-
eral Mike Hunter said the
case never was closed.
Epic is hardly the only
online charter school to have
found itself in hot water. In
a similar case this year in
California, 11 people were
indicted on multiple criminal
charges related to a series of
charter schools that prosecu-
tors allege stole more than
$50 million by creating phan-
tom institutions that enrolled
students, sometimes without
their knowledge.
A charter school manage-
ment company, A3 Education,
is at the center of those alle-
gations.
In 2016, a Virginia-based
for-profit company that oper-
ated online charter schools in
California, K12 Inc., reached
a $168.5 million settlement
with the state over atten-
dance and academic progress
records.
Last year in Ohio, the
attorney general sued the
founder and leaders of what
had been that state’s largest
online charter school, aiming
to recoup millions of dollars
after it shut down mid-school
year amid a dispute over pub-
lic funding and how students
were counted.
And in Indiana, educa-
tion officials want to recover
about $40 million from two
online charter schools, after
an audit found they inflated
enrollment figures.
“Public education laws in
this country were not written
to contemplate kids attending
school on the internet,” said
Greg Richmond, chief execu-
tive officer of the National
Association of Charter School
Authorizers.
In many states, laws gov-
erning virtual charter schools
are not clear, a problem often
compounded by understaffed
oversight entities and con-
fusion about who enforces
enrollment and attendance
laws, Richmond said.
“When you put all that
together, someone who is ill-
intentioned can drive a truck
through that, and we’ve seen
that happen now in several
states,” he said. “And because
they are virtual schools,
they’re not misappropriating
funds for 300 or 400 kids. It
can be 3,000 or 4,000 kids, so
the scale is at a whole other
level compared to a brick-
and-mortar school.”
The rapid growth of virtual
charter schools in Oklahoma
reflects a national trend, with
more than 430,000 students
nationwide enrolled in 501
full-time virtual schools and
300 blended schools that mix
in some traditional classroom
time, according to a May study
by the National Education
Policy Center. Virtual schools
operated by for-profit entities
were more than four times as
large as other virtual schools,
the study noted.
The study found that stu-
dents in district-operated
virtual schools performed far
better than charter-operated
schools and recommended
states slow or stop the growth
of virtual charter schools,
reduce student-to-teacher
ratios and sanction schools
that perform poorly.
Charter schools, which are
publicly funded but exempt
from most government regu-
lations, have become increas-
ingly popular in recent years,
particularly among Repub-
licans, as a way to provide
more alternatives to tradi-
tional public schools.
How virtual charter schools
stack up against traditional
public schools is a mixed bag.
An analysis of Epic’s student
performance released last
year shows that students at
some grade levels exceeded
the statewide averages in
math and English, but that
the school’s four-year gradu-
ation rate had been less than
half the statewide average
over the last few years.
In Oklahoma, lawmakers
plan to explore the issue
before next year’s legisla-
tive session, and the state’s
new Republican governor
has ordered an investigative
audit of the school and relat-
ed entities.
“I think this was a fore-
seeable crisis, and it came
from a lack of preparation
and planning in the initial
legislation,” said state Rep.
John Waldron, a Democrat
and public school teacher
elected to the state House
last year. “We didn’t put the
right procedures in place to
monitor things, and it’s raised
inevitable questions.”
 The Shawnee News-Star

news star.com Shawnee News Star LOCAL N

STATE NEWS BRIEFS

president and employees. several years ago at the be-

Trial starting for The Oklahoman reports hest of then-Gov. Mary Fal-
man accused in that former OETA board
chairman Greg King,
lin. Findings were referred
to the attorney general’s
deputy’s death whose term ended in June, RI¿FHEXWQRFKDUJHVZHUH
requested the investigative brought. A spokesman for
GUTHRIE, Okla. (AP) —
audit of the OETA Foun- Attorney General Mike
Testimony is expected to
dation that is to begin next Hunter said the case never
begin in the trial of a man
week. was closed.
accused of fatally shoot-
King said as the foun- Epic is hardly the only
ing an Oklahoma sheriff’s
dation dissolved, former online charter school to
deputy.
foundation President have found itself in hot
Aug Witnesses are scheduled
to testify Monday in the
trial of 47-year-old Nathan
Daphne Dowdy received
more than $700,000 in
water. In a similar case this
year in California, 11 people
severance pay and other were indicted on multiple
13 LeForce, who is charged
ZLWK¿UVWGHJUHHPXUGHULQ
the April 18, 2017, shooting
compensation and for-
mer employees received
criminal charges related to
a series of charter schools
$240,000 in sick pay, that prosecutors allege
death of 40-year-old Lo-
computer software sub- stole more than $50 mil-
gan County Deputy David
scriptions and gasoline for lion by creating phantom
Wade. A 12-member jury
2019 was seated on Friday.
Wade was fatally wound-
their vehicles.
OETA Foundation at-
torney Don Lepp denied
institutions that enrolled
students, sometimes
without their knowledge.
ed while serving an evic-
wrongdoing and called an A charter school manage-
tion notice at a home near
audit “a waste of time and ment company, A3 Edu-
Mulhall, about 50 miles
Page (80 kilometers) north of
Oklahoma City. Wade was
taxpayer funds.”
The foundation created
in 1982 agreed to dissolve
cation, is at the center of
those allegations.
In 2016, a Virginia-based
shot four times, including
A003 in the face, but still called
for backup as LeForce
in April amid a legal battle
with OETA over distribu-
for-profit company that
operated online charter
tion of OETA assets. schools in California, K12
allegedly stole his patrol
Inc., reached a $168.5 mil-
Clip car. LeForce is also charged
lion settlement with the
resized
with larceny of a vehicle
and armed robbery.
Oklahoma latest state over attendance and
LeForce has pleaded to grapple with academic progress records.
Last year in Ohio, the
25% not guilty. Prosecutors are
online school attorney general sued the
seeking the death penalty.
founder and leaders of
problems what had been that state’s
Oklahoma group OKLAHOMA CITY (AP) largest online charter
school, aiming to recoup
— When two tech-savvy
seeks vote to Oklahoma men launched millions of dollars after it
shut down mid-school year
reject ‘permitless their vision for an innova-
tive charter school in 2011 amid a dispute over public
carry’ law that students could attend funding and how students
were counted.
from home, the timing was
OKLAHOMA CITY (AP)
perfect.
— A Democratic state law-
Republicans had just ex-
maker from Oklahoma City
tended their majorities in
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the Legislature, taken con-
seeking a public vote on
trol of every elected state-
whether to reject a bill that
ZLGHRI¿FHDQGLQVWDOOHGD
would allow people in the
new state superintendent
VWDWH WR RSHQO\ FDUU\ ¿UH-
of public instruction who
arms without a background
was eager to embrace new
check or training.
ideas.
Rep. Jason Lowe’s ref-
Epic Charter Schools,
erendum petition targets a
which has no schoolhouse
bill passed overwhelmingly
and serves pre-kindergar-
last session that quickly
ten through 12th grade stu-
EHFDPHWKH¿UVWVLJQHGE\
dents who attend online,
the state’s new Republican
has exploded in growth
Gov. Kevin Stitt. The bill
in the eight years since it
is scheduled to take effect
launched and now boasts
Nov. 1.
an enrollment that rivals
“This bill was railroaded
the biggest districts in
through the Legislature to
Oklahoma. Last year, the
the governor’s desk,” said
school reported more than
/RZHZKRZDVÀDQNHGDWD
21,000 students and re-
press conference by church
ceived nearly $113 million
leaders and members of
in state funding. But those
the gun safety group Moms
numbers are now com-
Demand Action. “I have
ing under scrutiny from
long thought this bill was
state investigators who
not only a bad idea, but bad
revealed last month they
practice for our state.”
are looking into whether
Lowe said he was in-
the school’s two founders,
spired to launch the peti-
David Chaney and Ben
tion after mass shootings in
+DUULVDUWL¿FLDOO\LQÀDWHG
Texas and Ohio this month
the number of students
that left more than 30 peo-
and pocketed millions of
ple dead.
dollars illegally.
Supporters of the repeal
While the bulk of state
will face a tight deadline to
money pays for teacher
gather the nearly 60,000
salaries and benefits at
signatures before the end
Epic, Chaney and Harris
of August that are required
RZQ D IRUSUR¿W FRPSDQ\
to get the question on the
that manages the school for
ballot in 2020. An attor-
10% of its overall revenue
ney for the group, Brian
and have made millions of
Ted Jones, said he expects
dollars on the endeavor.
supporters to begin gath-
With a glitzy advertising
ering signatures as early as
campaign, the school at-
Wednesday.
tracts more students every
“I understand the win-
year.
dow is narrow as far as
Chaney and Harris also
getting this done, but I’ve
opened up their wallets
got to do something,” Lowe
to prominent politicians,
said.
donating more than
Dubbed “constitutional
$160,000 almost entirely
carry” by its supporters, the
to Republican candidates
bill would allow most resi-
in the last two election
dents 21 and older to carry
cycles, including the gov-
concealed or unconcealed
ernor, state superintendent
¿UHDUPVZLWKRXWDOLFHQVH
and attorney general. Epic
Exceptions would include
also operates in California,
anyone in the country ille-
where it has more than 500
gally or those convicted of
VWXGHQWV IURP ¿YH FRXQ-
certain crimes. Firearms
ties. A contract in Texas
would still be prohibited in
was put on hold because
certain locations, including
of the ongoing probe in
public buildings, schools,
Oklahoma.
professional sporting
No charges have been
events, casinos and bars.
filed, but an Oklahoma
Currently, those wishing
State Bureau of Investi-
WRFDUU\D¿UHDUPLQSXEOLF
gation agent wrote in an
must apply for a license
DI¿GDYLWIRUDVHDUFKZDU-
that includes a state back-
rant that the men recruited
ground check and comple-
and enrolled “ghost stu-
tion of a training course.
dents” who received little
A similar bill was vetoed
to no instruction. Many
last year by Republican
of these students were
former Gov. Mary Fallin
home-schooled or attend-
amid opposition from the
ed private school, but they
business community and
were recruited by Chaney
law enforcement.
and Harris to also enroll
in Epic, the investigator
OETA ex-fundraising wrote.
Neither Chaney nor Har-
arm to be audited ris responded to requests
for an interview, but they
as expenses released a statement in
questioned which they denied wrong-
doing and disputed the
OKLAHOMA CITY (AP) allegations.
— The former fundraising “We are confident the
partner for the Oklahoma facts will once again vindi-
Educational Television cate our team,” the state-
Network will undergo ment read.
a state audit after OETA The “once again” refers
raised questions about to a fraud investigation of
payments to its former Epic that the OSBI started

Property of OPS News Tracker and members of the Oklahoma Press Association.