Indiana Charter Schools Accused of Misappropriating Public Funds

  • Indiana AG Todd Rokita sued virtual charter school operator Indiana Virtual Educational Foundation and related entities and individuals (collectively, “IVEF”) for misappropriating public funds under the theory of malfeasance, misfeasance, and/or nonfeasance, and under the Indiana Crime Victims Relief Act.
  • The complaint alleges that IVEF received more than $68 million of public funds—including over $2 million in special education funds—by misrepresenting the number of students enrolled in and attending its charter schools; and wrongfully disbursed more than $85 million to IVEF-connected entities, including disbursing funds without invoices or with insufficiently detailed invoices. The schools’ charters have been revoked for a variety of reasons, including for allegedly failing to meet minimum academic standards and to comply with accounting and related provisions required by Indiana law.
  • The complaint seeks treble damages, disgorgements, and attorneys’ fees and costs.