Rokita Sues Online Schools, Seeks $154M
Indiana Attorney General Todd Rokita
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndiana Attorney General Todd Rokita has filed a lawsuit against a consortium of virtual schools for what he calls misappropriation of funds and a “massive attempt to defraud Hoosier taxpayers.” He is seeking more than $154 million from three online charter schools.
Indiana’s lawsuit targets Indiana Virtual School, Indiana Virtual Pathways Academy, Indiana Virtual Educational Foundation, and other related entities and individuals.
“This massive attempt to defraud Hoosier taxpayers through complex schemes truly boggles the mind,” said Rokita. “This case demonstrates once again that public servants must remain ever vigilant in our work to safeguard the public treasury from opportunists.”
The attorney general’s office says IVS and IVPA operated online charter schools that were sponsored by the Daleville Community School Corp. from July 22, 2015, to Aug. 26, 2019.
Daleville officials revoked the charters, accusing the schools of failing to meet minimum academic standards and failing to comply with accounting and related provisions required by Indiana law.
Rokita says the State Board of Accounts conducted a special investigation and concluded that public funds were misappropriated through “malfeasance, misfeasance, and/or nonfeasance.”
He says the SBOA found that the schools wrongfully received more than $68 million collectively from the state of Indiana and that the schools alleged disbursed more than $85 million collectively in public funds to vendors without receiving invoices or itemized information on how the money was spent.
The AG says the case has also been referred to federal and state criminal investigative agencies.