A founding board member of Acclaim schools questioned school finances. He was fired from the board. Is that the end of it? No.
Millions of dollars are owed and millions are missing. It is hard to believe.
The three schools in Duval, Orange and Osceola counties were bankrupt and closed. The schools received $13.4 million in revenues over the last three years, according to the Florida Times Union, but now cannot pay all of its bills. It owes over $100,000 in staff salaries. It has debts totaling $2.5 million. Administration expenses were 35% of the total budget.
It gets even worse.
Two charter loan companies are suing Acclaim’s CEO, Dennis Mope. They loaned the schools $1.2 million just weeks before the schools closed. The companies were ‘factoring’, loaning money based on future receipts from the schools. They say they were misled by the CEO about the school’s future and financial status.
So is the school district these charters reside in now responsible for these debts?
This is a good subject for a post. Who pays is complicated by who signs for the bonds. In Palm Bay, CSUSA defaulted on millions of dollars in bonds and the taxpayers paid. See: http://cashinginonkids.com/facts/charter-school-bonds-whats-the-worst-that-could-happen/
The loan companies are suing the Acclaim Schools. Acclaim filed bankruptcy which gets them off the hook. Teachers can get a portion of their salaries until the money runs out. Then, the rest of the companies who are owed are likely out of luck. There is probably an ongoing investigation into where the loan money is now.