crimestoppers

Investigation into charter school CEO ends with an indictment

The founder of a moribund chain of Brooklyn charter schools embezzled taxpayer funds and did not pay taxes on his earnings, then falsified documents to try to cover up his crimes, according to Attorney General Eric Schneiderman.

Schneiderman today announced that he was indicting Eddie Calderon-Melendez, the founding CEO of the Believe High Schools Network, on 11 felony charges including tax fraud, grand larceny, and tampering with evidence.

The indictment caps a lengthy investigation that was well underway when the state and cityciting massive mismanagement and financial improprieties, each moved to shut down the network this year. A major issue was the high management fees that Calderon-Melendez charged the network’s three schools. Last year, Williamsburg Charter High School  failed to make rent after a sharp enrollment decline. The year before, the school sent students to an industrial space when its own building was not ready.

The state is letting one school in the network, Believe Northside Charter School, remain open, but the city earlier this month rejected an appeal by the flagship school, Williamsburg Charter, after concluding that it was about $5 million in debt.

Calderon-Melendez took home nearly $1.5 million while that debt accrued, according to Schneiderman’s indictment, which spells out a pattern of brazen theft. Investigators found that Calderon-Melendez paid no taxes on those earnings and used the school’s credit card to finance a personal trip to Europe. And when they started scrutinizing the school’s records, Calderon-Melendez fabricated documents and evidence to “throw investigators off his trail,” Schneiderman said in a press release about the charges.

Calderon-Melendez was forced out of the Believe Network’s leadership in February, years into Schneiderman’s investigation and months after the city and state had told the schools to sever their relationship with him or lose their right to operate.

Charter schools are publicly funded but privately managed, an arrangement that can create some opportunities for fraud that do not exist in district-managed schools. But charter schools that are mismanaged can be closed.

Schneiderman’s press release is below.

A.G. Schneiderman Secures Indictment Of Former Brooklyn Charter School Network Founder And CEO

Believe Network And Williamsburg Charter High School Leader Received Over $1.4 Million In Compensation And Never Paid Taxes To New York

After Taking Home Over $500K In 2009, Eddie Calderon-Melendez Charged European Vacation On School Credit Card

Schneiderman: Those Who Cheat Taxpayers And Abuse The Public Trust Will Be Prosecuted To Fullest Extent Of The Law

NEW YORK – Attorney General Eric T. Schneiderman today announced his office has secured an 11-count indictment of Eddie Calderon-Melendez, the founder and former CEO of the beleaguered Williamsburg Charter High School and Believe High Schools Network, a charter management organization. According to the Attorney General’s indictment, Calderon-Melendez received over $1.4 million in compensation from 2005 to 2010, yet he never filed a tax return and failed to pay over $70,000 in taxes.

Nearly all of Calderon-Melendez’s compensation during that period came, directly or indirectly, from taxpayer-funded charter schools. Mr. Calderon-Melendez then attempted to cover up his tax crimes by creating and submitting false New York tax returns to the Office of the Attorney General.

“While earning a six-figure salary funded largely by taxpayer dollars, the defendant robbed the state of New York of much-needed revenue when he failed to pay his taxes for six years in a row. He then compounded his crime by creating false evidence to throw investigators off his trail,” Attorney General Schneiderman said. “The charges announced today send a strong message that tax cheats and those who tamper with investigations will be prosecuted to the fullest extent of the law.”

The indictment, secured in Kings County Supreme Court, charged Melendez with 11 felony counts: two counts of Repeated Failure to File Personal Income and Earnings Taxes; two counts of Criminal Tax Fraud in the Third Degree; one count of Criminal Tax Fraud in the Fourth Degree; four counts of Tampering with Physical Evidence; one count of Grand Larceny in the Fourth Degree; and one count of Falsifying Business Records in the First Degree.

According to the indictment, at the end of 2009—a year in which he took home over $500,000—Melendez charged over $1,800 on the Williamsburg Charter High School’s credit card, to pay for expenses as part of a personal trip he took to Europe. In an effort to conceal this theft, Melendez then made false entries in the business records of the Charter High School.

Commissioner of Taxation and Finance Thomas H. Mattox, said, “Earlier this week, the Tax Department described its statewide efforts regarding personal income tax violations. I commend Attorney General Eric Schneiderman and his staff for today’s action, which underscores that non-compliance with income tax obligations will be an enforcement priority for New York State.”

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

This investigation was handled by Assistant Attorney General Nicholas Suplina and Senior Counsel Emily Bradford, under the supervision of Taxpayer Protection Bureau Chief Randall Fox and Executive Deputy Attorney General for Criminal Justice Nancy Hoppock.

father knows best

How a brush with death convinced one dad to get his diploma, with a boost from the Fatherhood Academy

PHOTO: Courtesy of Steven Robles
Steven Robles with his family

Steven Robles thought he might not live to see his daughter’s birth.

In May 2016, the 20-year-old was in the hospital after being shot during what he described as an argument in his neighborhood.

A year later, Robles just graduated from City University of New York’s Fatherhood Academy. He passed his high school equivalency exam and is happily celebrating his daughter Avare’s 8-month birthday.

“That conflict is what got me into the program, and what happened to me before she was born motivated me to stay in the program,” Robles said. “It motivated me to manage to pass my GED.”

Robles grew up in Brownsville, Brooklyn and attended Franklin K. Lane High School. Though he liked his teachers, Robles said other students at the school were not “mature enough,” and the disorderly school environment made it hard for him to concentrate.

A quiet student, Robles said teachers would often overlook his presence in the classroom. Between that and friction with other classmates, Robles lost interest in school.

“My parents didn’t try to help me, either,” Robles said. “Nobody really tried to help me with that school, so I just stopped going.”

It was a whole different experience for him once he arrived at the Fatherhood Academy at LaGuardia Community College, a program run by CUNY for unemployed and underemployed fathers ages 18 through 28. The Academy, now partnering with the New York City Housing Authority at its LaGuardia location, was launched in 2012 and also has programs at Hostos and Kingsborough Community Colleges.

“I have interviewed many of the men who come into the program and I often ask the question, ‘What brought you here?'” said Raheem Brooks, program manager of the Fatherhood Academy at LaGuardia Community College. “Mostly every young man says, ‘I’m here because I want to create a better life for my child than I had.’ So, I think the main theme of the program is that we help promote intergenerational change.”

At the LaGuardia branch, 30 students attend classes three times a week over the course of 16 weeks. Subjects include mathematics, social studies, and writing for students seeking to get their high school equivalency diplomas. Students also attend workshops run by counselors who guide them in professional development and parenting.

Robles found out about the program after seeing a flier for it in his social worker’s office at Graham Windham, a family support services organization. Curious to see what the Academy offered, he called to find out more and officially enrolled after passing a test to prove he could read above seventh-grade level.

“Before the Academy, I was not really into school at all,” Robles said. “But when I got there, it just changed my life. In this program, I didn’t know anybody there, there were no distractions. It made me more focused, and I just really wanted to get my GED and education.”

What helped Robles the most was getting to learn from the other fathers in the class, who were going through similar experiences as him.

“Little things I didn’t know, I learned from them because they were also fathers,” Robles said. “I just liked the way they were teaching us.”

In fact, he liked the Academy so much, he doesn’t plan to leave. He is applying to study criminal justice at LaGuardia Community College and to become a mentor for the Academy next year.

Currently, Robles lives with his grandparents, his daughter and the mother of his child. Getting a place for his family is next on his to-do list, he said.

“Avare always has a smile on her face and always puts a smile on my face,” Robles said. “She motivates me to get up and do what I have to do. Anything I could do for her, I will.”

Though school did not play a huge role in his life growing up, that is not what Robles wants for his daughter. He said after participating in the Academy, he wants to make sure Avare stays motivated and in school.

“I hear a lot from people about how they think they can’t do it,” Robles said. “I almost lost my life before my daughter was born and that motivated me. If I could do it, you could do it.”

Behind the brawl

Three things to know about the Tennessee school behind this week’s graduation brawl

PHOTO: Arlington Community Schools
Arlington High School is a 2,000-plus-student school in suburban Shelby County in southwest Tennessee.

Arlington High School is considered the crown jewel of a 3-year-old district in suburban Shelby County, even as its school community deals with the unwelcome attention of several viral videos showing a fight that broke out among adults attending its graduation ceremony.

The brawl, which reportedly began with a dispute over saved seats, detracted from Tuesday’s pomp and circumstance and the more than $30 million in scholarships earned by the school’s Class of 2017. No students were involved.

“It was unfortunate that a couple of adults in the audience exhibited the behavior they did prior to the ceremony beginning and thus has caused a distraction from the celebration of our students’ accomplishments,” Arlington Community Schools Superintendent Tammy Mason said in a statement.

Here are three things to know about the 13-year-old school in northwest Shelby County.

With more than 2,000 students, Arlington is one of the largest high schools in Shelby County and is part of a relatively new district.

It’s the pride of a suburban municipality that is one of six that seceded from Shelby County Schools in 2014 following the merger of the city and county districts the year before. (School district secessions are a national trend, usually of predominantly white communities leaving predominantly black urban school systems.) More than 70 percent of Arlington’s students are white, and 6 percent are considered economically disadvantaged — in stark contrast to the Memphis district where less than 8 percent are white, and almost 60 percent are considered economically disadvantaged.

The school’s graduation rate is high … and climbing.

Last year, after adding interventions for struggling students, the school’s graduation rate jumped a full point to more than 96 percent. Its students taking the ACT college entrance exam scored an average composite of 22.5 out of a possible 36, higher than the state average of 19.9. But only a fifth scored proficient or advanced in math and a third in English language arts during 2015-16, the last school year for which scores are available and a transition year for Tennessee under a new test.

PHOTO: Caroline Bauman
Education Commissioner Candice McQueen visits with students at Arlington High School during a 2016 tour.

The school was in the news last August when Tennessee Education Commissioner Candice McQueen visited its campus.

The commissioner spoke with students there to kick off her statewide listening tour that’s focused on ways to get students ready for college and career. McQueen highlighted the school’s extracurricular activities and students’  opportunities to intern for or shadow local professionals. She also complimented Arlington for having an engaged education community.