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It’s true that there are occasional stories of embezzlement or fraud in public schools, but none compares to the sheer audacity of California’A3 online charter chain. Its two cofounders—Jason Schrock and Sean McManus—concocted elaborate schemes and pocketed hundreds of millions of dollars of state funds. They both pleaded guilty and repaid hundreds of millions.
Schrock, however, will not spend a day in prison.
SAN DIEGO —
One of the two masterminds behind a massive charter school scheme that defrauded the state of California out of tens of millions of dollars was sentenced to four years in prison and ordered to pay $18.75 million in fines in San Diego Superior Court on Friday.
Jason Schrock, a co-creator of the now-defunct A3 charter school network, pleaded guilty in February to one count of conspiracy to misappropriate public funds and one count of conflict of interest. He has been on house arrest in Orange County since he was arraigned in May 2019.
Because the law requires that Schrock receive credit for the more than 750 days he has spent on house arrest, he will not spend a single day in prison.
At Schrock’s sentencing hearing, defense attorney Knut Johnson emphasized that Schrock had been wholly cooperative during the investigation, turning over hundreds of millions of dollars in assets and thousands of pages of documents to further the investigation.
It was that cooperation that kept San Diego Superior Court Judge Frederick Link from handing down a stiffer sentence, the judge said. The case centered on what has been labeled as one of the nation’s largest fraud schemes after taxpayers were fleeced out of $400 million meant for K-12 education. Due in part to the cooperation of Schrock and his co-conspirator, Sean McManus, investigators have recovered $220 million…
A yearlong investigation by the San Diego County district attorney’s office determined that Schrock and McManus and their codefendants fraudulently obtained hundreds of millions in state school dollars from 2016 to 2019 after opening a network of 19 online charter schools. Three of those schools were in San Diego County.
Prosecutors accused A3 leaders of buying children’s personal information to falsely enroll them in the schools and of providing incomplete education services while taking tens of millions of dollars for personal use. A3 leaders also manipulated enrollment figures across their schools to receive more state funding per student and manipulated school attendance reporting to get more money for time that children were not spending in A3 schools.
So far, nine defendants in the case have pleaded guilty.