OIG Investigative Reports, Former CEO of Charter School Sentenced to 37 Months on Fraud, Theft and Tax Charges 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 For Immediate Release U.S. Department of Justice United States Attorney Eastern District of Pennsylvania 615 Chestnut Street Suite 1250 Philadelphia, Pennsylvania 19106-4476 (215) 861-8200 October 22, 2009 FORMER CEO OF CHARTER SCHOOL SENTENCED TO 37 MONTHS ON FRAUD, THEFT AND TAX CHARGES PHILADELPHIA - Kevin O'Shea, 50, of Philadelphia, was sentenced today to 37 months in prison for mail fraud, theft from a federally funded program, and filing a false tax return. At the time of the crimes, O'Shea's was working for and defrauding the Philadelphia Academy Charter School (PACS), announced United States Attorney Michael L. Levy. In July 2009, O'Shea entered a guilty plea admitting that he stole between $400,000 and $1 million from PACS by: (1) using approximately $710,000 in PACS' funds to purchase a building in the name of his purported non-profit business; (2) demanding kickbacks from PACS vendors; (3) submitting for reimbursement at least $40,000 in fraudulent invoices for personal meals, entertainment, home improvements, and gas and telephone bills; (4) having approximately $50,000 worth of home repairs improperly billed to PACS; (5) collecting approximately $34,000 in rent from entities using PACS facilities; and (6) hiring a computer firm in an attempt to destroy computer evidence to obstruct this investigation. O'Shea also admitted to filing a false tax return for 2006. In addition to the prison term, U.S. District Court Judge Eduardo C. Robreno ordered O'Shea to pay restitution in the amount of $900,000, to forfeit $500,000, and pay a $1,000 fine. O'Shea must report to prison by December 7, 2009. The case was investigated by the United States Department of Education Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation Division. The School District of Philadelphia's Office of Inspector General assisted in the investigation. It was prosecuted by Assistant United States Attorney Derek A. Cohen. UNITED STATES ATTORNEY'S OFFICE EASTERN DISTRICT, PENNSYLVANIA Suite 1250, 615 Chestnut Street Philadelphia, PA 19106 Contact: PATTY HARTMAN Media Contacts 215-861-8525 Top Printable view Last Modified: 10/23/2009 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
Former CEO of Charter School Sentenced to 37 Months on Fraud, Theft and Tax Charges. Philadelphia, PA., October 22, 2009
Published by the Department of Education, Office of Inspector General on 2009-10-22.
Below is a raw (and likely hideous) rendition of the original report.