Report: $225M in K-12 Fraud Found Across Six Years
A watchdog analysis of federal inspector general reports says inflated enrollment, fake billing and other schemes diverted public education money.
- A new report from the State Financial Officers Foundation and Open the Books uncovered about $225 million in alleged fraud across America's schools over six years, analyzing Education Department Office of the Inspector General reports from October 2019 to March 2026.
- SFOF CEO Oleka cited a lack of oversight in education departments, allowing bad actors to exploit programs. These entities deliberately target funds meant for children, which Oleka described as 'a pretty disgusting thing.'
- Specific schemes detailed in the report include $44 million in excess funding for two Indiana online charter schools that inflated enrollment and $24 million obtained by a Puerto Rico tutoring company for services never provided.
- Open the Books CEO John Hart stated these schemes 'hit us where it hurts most,' emphasizing that every dollar wasted never reaches classrooms. Defending Education's Rhyen Staley noted fraud erodes public trust between teachers and staff.
- Arizona state treasurer Kimberly Yee argued for shifting fraud enforcement to states, claiming they possess better accountability mechanisms than the federal government. Yee noted smaller school districts are often hit hardest by fraud schemes.
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Report: $225 million in ‘hideous’ fraud schemes found across U.S. schools * WorldNetDaily * by Arianna Hooker, Daily Caller News Foundation
'The findings should alarm every family, teacher, and civic leader, especially since they only scratch the surface of the problem'
Report alleges $225 million in fraud schemes across US schools since 2019
A new report from the State Financial Officers Foundation and Open the Books uncovered nearly 90 alleged fraud schemes involving roughly $225 million across American schools since 2019. The report alleges that school districts have been embezzling funds, creating fake invoices and then pocketing the money, lying about student enrollment numbers to collect more aid,...
How $225 Million In School Funds Vanished Into Luxury Homes, Fake Invoices, And Disney Cruises - Tampa Free Press
A deep dive into more than six years of federal watchdog records shows that over $225 million meant for classrooms across America was instead swallowed up by widespread corruption, insider dealing, and elaborate scams. Auditors from SFOF and Open The Books tracking the U.S. Department of Education Office of Inspector General’s reports from October 1, […] How $225 Million In School Funds Vanished Into Luxury Homes, Fake Invoices, And Disney Cruis…
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