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K12 (Of the K12 appointed by DeDOE to Run Moyer Charter) Accused of Securities Fraud




Firm running Moyer Academy accused of fraud
 
A private for-profit company hired by state officials to run the troubled Moyer Academy charter school in Wilmington is the target of a lawsuit alleging federal securities fraud.
A lawsuit filed in Virginia alleges that officials with Virginia-based K12 Inc. made false and misleading statements regarding the company's business and financial results in order to inflate K12's stock price.

The complaint was filed last week on behalf of investors who bought K12 stock between 2009 and last year. It alleges among other things that K12 used deceptive student recruiting practices and improper academic assessments to increase its student enrollment and revenues.

A K12 spokeswoman did not immediately return a telephone message Monday. A spokeswoman for state education secretary Lillian Lowery say Lowery has not seen the filing and can't comment.
Category: 3 comments

3 comments:

Anonymous said...

I am not sure that it is fair to lump the folks trying to make Moyer viable with the corporation...Just like it wouldn't be fair to lump the CSD board with the teacher accused of improper relations with a student.

Elizabeth Scheinberg said...

That's a fair statement. However, the post is just a reprint from WDEL, so I won't take any credit for it.

There are likely good people working at Moyer. The fraud filing is specific to K12 as a corporation and not to Moyer itself. However, K12 was cherry picked by DOE to run Moyer. K12 has never posted their financial statements regarding Moyer as state law requires and seemingly have been given a pass by DOE to skirt the rules that all other charters and districts must live by. That certainly does put Moyer in a grim light. But, again K12 must own that as it's not the responsibilities of teachers, etc. at Moyer to post that info.

Nancy Willing said...

AMEN - the complaints here aren't to Moyer staff but go directly to DDOE, the Governor and his crony relationships on Wall Street.

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