OIG Investigative Reports Press Release, Philadelphia, PA, 01/22/2013 - Charges Filed Against Charter School Founder and Co-Defendants Skip to main contentAbout UsContact UsFAQs Language Assistance Englishespañol中文: 繁體版Việt-ngữ한국어TagalogРусский U.S. Department of Education Search for: Toggle navigation U.S. Department of Education Student Loans Grants Laws Data About ED OFFICES Home Reports & Resources Programs/Initiatives News Office Contacts Investigation Report THE UNITED STATES ATTORNEY'S OFFICE EASTERN DISTRCIT OF PENNSYLVANIA PRESS RELEASE Additional Charges Filed Against Charter School Founder and Co-Defendants FOR IMMEDIATE RELEASE January 22, 2013 PHILADELPHIA – A superseding indictment was filed today against Dorothy June Brown, 75, of Haverford, Pennsylvania, charging her and with two additional counts of wire fraud and one additional count of obstruction of justice in connection with schemes to defraud three charter schools of more than $6.7 million. Charged with Brown in the 67-count superseding indictment are Joan Woods Chalker, 74, of Springfield, Pennsylvania, Michael A. Slade, Jr., 31, of Philadelphia, Pennsylvania, Courteney L. Knight, 65, of King of Prussia, Pennsylvania, and Anthony Smoot, 50, of New Castle, Delaware. All five defendants were previously named in a 62-count indictment, filed on July 24, 2012. The original indictment alleges that Brown used her private management companies, Cynwyd Group and AcademicQuest, to defraud the Agora Cyber Charter School ("Agora") and the Planet Abacus Charter School ("Planet Abacus") soon after she founded the schools in 2005 and 2007, respectively. Brown is also charged with defrauding the Laboratory Charter School of Communication and Languages ("Laboratory"), a school she founded in 1997, by using Laboratory funds to pay the wages of an employee at one of Brown's private management companies. The new indictment includes an additional wire fraud scheme alleging that Brown and Chalker caused Laboratory to pay them approximately $214,095 in compensation that they were not entitled to receive. It further alleges that Brown and Chalker obstructed justice by fabricating Laboratory records and policies to make it falsely appear as if they were owed the payments from Laboratory due to unused vacation and sick time. The superseding indictment also includes new charges that Slade and Knight obstructed justice by fabricating board resolutions of Laboratory and another school, the Ad Prima Charter School. Each of the wire fraud and obstruction of justice counts carry a maximum possible sentence of 20 years in prison. If convicted, the defendants face substantial terms of imprisonment and significant fines and other financial penalties. This case was investigated by the United States Department of Education - Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Anthony Kyriakakis. UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICT of PENNSYLVANIA Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106 PATTY HARTMAN, Media Contact, 215-861-8525 Top Printable view Last Modified: 01/23/2013 How Do I Find... Student loans, forgiveness College accreditation No Child Left Behind FERPA FAFSA 1098-E Tax Form 2015 Budget Proposal More > Information About... Transforming Teaching Family and Community Engagement Early Learning K-12 Reforms More > Connect Facebook Twitter YouTube Email RSS Google+ More > MISUSED FOIA OIG Fraud Hotline Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Student Loans Repaying Loans Defaulted Loans Loan Forgiveness Loan Servicers Grants & Programs Apply for Pell Grants Grants Forecast Open Grant Competitions Find Grant Programs by Eligibility Laws & Guidance No Child Left Behind FERPA Civil Rights Data & Research Education Statistics Postsecondary Education Data State Education Data Nation's Report Card What Works Clearinghouse About Us Contact Us ED Offices Jobs News FAQs Budget, Performance Notices FOIAPrivacySecurityInformation qualityInspector GeneralWhitehouse.govUSA.govBenefits.govRegulations.gov
Additional Charges Filed Against Charter School Founder and Co-Defendants. Philadelphia, PA., January 22, 2013
Published by the Department of Education, Office of Inspector General on 2013-01-22.
Below is a raw (and likely hideous) rendition of the original report.