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.

Top 10

From forest preschools to a secret apology, here are Chalkbeat Colorado’s must-read stories of 2018

PHOTO: Ann Schimke/Chalkbeat
Megan Patterson works with children to make a dam in a creek during a recent "forest school" class.

We spend a lot of time at Chalkbeat chasing the news to keep our readers informed about controversial policy changes, fast-moving debates, and late-breaking decisions.

But we also relish the opportunity to dig deep into issues affecting students and families, shine light on innovative ideas, and hear from dedicated educators making a difference. With that in mind, we’ve gathered 10 of our best stories from 2018.

These stories don’t necessarily chronicle the biggest education issues of 2018, from teacher walkouts to unprecedented state interventions. But they are stories we think are important and insightful, and that we enjoyed reporting and writing. We hope you enjoy reading them.

No walls: Forest preschools let kids run free, but can they change to reach diverse families?

One day this past summer, about a dozen children frolicked by a Jefferson County creek — making pretend tea in small metal buckets, and building dams with sticks and mud.

They were students at Worldmind Nature Immersion School, where children spend all their time outside. So-called forest preschools like Worldmind are beloved by many families but face significant regulatory and logistical barriers in expanding their footprint nationwide. Here in Colorado, a pilot program could lead a new kind of child care license designed for them.

And being licensed could help the schools confront another problem: a lack of diversity among their students. Read more.

Colorado was never ranked 46th for teacher pay. Does this change the debate?

It was an oft-cited statistic: that Colorado, despite its booming economy, ranked 46th in the nation for teacher pay. The eye-popping number found its way onto social media posts and signs at massive teacher rallies last spring. News outlets latched on to it, too.

But it was wrong. Colorado was actually ranked 30th in the nation.

Our story breaks down how the mistake happened (hint: a new data system, an unrevised report) — and how groups with different agendas seized on the snafu to score points. Read more.

This is the letter of apology that Adams 14 leaders never sent

The Adams 14 district in Commerce City is arguably the most troubled and low-performing in Colorado. Just last month, state officials directed Adams 14 to hire an external manager to oversee the district’s operations for at least the next four years.

Back in September, Adams 14 officials considered taking a rare step: saying sorry to the community. But an apology letter was never signed nor sent out.

Chalkbeat obtained a copy of the letter, which makes mention of “various and conflicting priorities, coupled with constant turnover and organizational disarray.” Read more.

Rising test scores and dwindling trust: Denver’s Tom Boasberg leaves a complicated legacy

Colorado’s largest school district experienced a big change this year when longtime leader Tom Boasberg announced he would step down after nearly 10 years in Denver Public Schools.

Because of his school improvement strategies — some of which were controversial and heightened tensions with the community — the district that the new superintendent, Susana Cordova, will inherit in January is vastly different than it was a decade ago.

One tangible difference: Schools that once served as anchors of the community but struggled academically have been closed or replaced. That disappearance was on display on one of Boasberg’s last days, when he held his cell phone close to his mouth and enunciated each word so his GPS would understand his direction: “Montbello High School.” Read more.

Parents in one Aurora high school are visiting classrooms and giving teachers feedback

Like many schools in Colorado, Aurora’s Rangeview High School has a test score gap between white and black students. But the assistant principal there came up with a unique way to try to address it: by inviting black parents to visit classrooms and observe how students are — or are not — engaging with the teacher’s lesson, and then provide suggestions for improvement.

“We give true and honest feedback,” said one parent involved, “if they looked or appeared comfortable, how they interacted with the environment, the temperature of the room.”

Although the assistant principal considers the African American Parent Committee an experiment, she said it’s generating uncomfortable but necessary conversations. Read more.

How education reform became a wedge issue among Colorado Democrats this election year

For years, more moderate Democrats, often working in unison with like-minded Republicans, championed education reform efforts ranging from school choice to holding educators accountable for student performance.

But partly because of backlash against President Donald Trump and his education secretary, those strategies no longer fly with many Democrats — especially left-leaning Democrats who see them as undercutting public education and devaluing the work of teachers.

That sentiment was palpable in Colorado’s Democratic gubernatorial primary, and could shape the next legislative session, which starts in January. “Education is the issue that really stands to divide the left in a very substantial way,” one observer said. Read more.

How a Colorado school district turned things around at 10,000 feet above sea level

School improvement efforts look a little different high in the Rocky Mountains. While many of the strategies used by the 1,000-student Lake County school district are familiar to urban settings, they’ve been retrofitted to meet the needs of a district that’s 100 miles west of Denver.

For example, instead of firing teachers and principals who weren’t accelerating student learning fast enough, the district adopted a new curriculum and gave its teachers lots of training.

“The belief that the people are the problem is wrong,” the superintendent said. “Our teachers are professionals, and we believe in them. We’re proving that there is a framework or a pathway for rural schools to improve that’s about building capacity within your own community.” Read more.

7 things to know about how Colorado schools punish their youngest students

After state lawmakers rejected a bill to limit the use of suspensions in the earliest grades, Chalkbeat wanted to know more about the early childhood discipline landscape in Colorado. Data from the Colorado Department of Education revealed several trends.

Among them: Young black boys are suspended at disproportionate rates. Some rural school districts have the highest early childhood suspension rates in the state.

And despite nationwide debate about the impact of harsh discipline on young children and local efforts to bring the numbers down, suspensions in the early grades are actually going up. Read more.

In Denver’s gentrifying neighborhoods, some middle-class parents are avoiding the school down the block

Many neighborhoods in Denver are gentrifying, with middle-class families moving into what have historically been working-class communities. That type of demographic shift could easily lead to neighborhood schools that are more integrated by family income and race.

But that doesn’t always happen in Denver. Instead, data show that wealthier families – more often than low-income families – are using Denver Public Schools’ universal school choice process to send their kids to schools elsewhere in the city.

That’s a problem because research shows integrated schools boost test scores for students from low-income families without lowering the scores of those from wealthier ones. Denver officials want to see those benefits, but allowing parents to choose may be thwarting them. Read more.

Why this Colorado principal hand delivers birthday cards to more than 2,000 students and staff

Northglenn High School Principal Sharee Blunt is Colorado’s 2018 School Principal of the year — but perhaps even more impressive is the enormous number of birthday cards she hand delivers each year. If you’re one of those people who can barely remember your spouse’s birthday, you’ll be floored by Blunt’s annual feat.

In our interview with Blunt, part of Chalkbeat’s “How I Lead” Q&A series with distinguished school leaders, she talks about what she realized after a mother’s emotional reaction, and why she gave a teacher a pass during a lesson that went awry. Read more.

union power

Charter teachers won big in nation’s first strike. What now?

PHOTO: Yana Kunichoff / Chalkbeat
Teachers from Acero charter schools in Chicago protest stalled negotiations Oct. 24, 2018, as they readied to vote on authorizing a strike.

Some 500 unionized teachers joined in the nation’s first charter strike last week, and succeeded in negotiating wage increases, smaller class sizes and a shorter school day. Their gains could foreshadow next year’s citywide contract negotiations — between the Chicago Teachers Union, with its contract expiring in June, and Chicago Public Schools.

“The issue of class size is going to be huge,” said Chris Geovanis, the union’s director of communications. “It is a critically important issue in every school.”

Unlike their counterparts in charters, though, teachers who work at district-run schools can’t technically go on strike to push through a cap on the number of students per class. That’s because the Illinois Education Labor Relations Act defines what issues non-charter public school teachers can bargain over, and what issues can lead to a strike.

An impasse on issues of compensation or those related to working conditions, such as length of the school day or teacher evaluations, could precipitate a strike. But disagreements over class sizes or school closures, among other issues, cannot be the basis for a strike.

The number of students per class has long been a point of contention among both district and charter school teachers.

Educators at Acero had hopes of pushing the network to limit class sizes to 24-28 students, depending on the grade. However, as Acero teachers capped their fourth day on the picket line, they reached an agreement with the charter operator on a cap of 30 students — down from the current cap of 32 students.

Andy Crooks, a special education apprentice, also known as a teacher’s aide, at Acero’s Sor Juana Inés de la Cruz school and a member of the teachers bargaining team, said that even having two fewer students in a classroom would make a huge difference.

“You really do get a lot more time with your students,” Crooks said. “And if you are thinking about kindergarten in particular, two less 5-year-olds really can help set the tone of the classroom.”

In district-run schools, classes are capped at 28 students in kindergarten through third grade, and at 31 students in fourth through sixth grade. But a survey by the advocacy group Parents 4 Teachers, which supports educators taking on inequality, found that during the 2017-2018 school year, 21 percent of K-8 classrooms had more students than district guidelines allowed. In 18 elementary school classrooms, there were 40 or more students.

The issue came up at last week’s Board of Education meeting, at which Ivette Hernandez, a parent of a first-grader at Virgil Grissom Elementary School in the city’s Hegewisch neighborhood, said her son’s classes have had more than 30 students in them. When the children are so young and active — and when they come into classrooms at so many different skill levels — “the teachers can’t handle 30 kids in one class,” she told the board.

Alderman Sue Garza, a former counselor, accompanied Hernandez. She also spoke before the board about classroom overcrowding — worrying aloud that, in some grades at one school in particular, the number of students exceeded the building’s fire codes. (Board chair Frank Clark said a district team would visit the school to ensure compliance fire safety policies.)

While the Chicago Teachers Union aren’t technically allowed to strike over class sizes, the union does have a history of pushing the envelope when it comes to bargaining.

Back in 2012, when the Chicago Teachers Union last went on strike, they ended up being able to secure the first limit on class sizes in 20 years because the district permitted the union to bargain over class size.

They also led a bargaining campaign that included discussion over racial disparities in Chicago education and school closures, arguing that these trends impacted the working conditions of teachers.

“Even if you can’t force an employer to bargain over an issue, you can push them to bargain over the impact of an issue,” Bob Bruno, a labor professor at the University of Illinois at Champaign-Urbana, explained.

The Chicago Teachers Union also emerged from its 2012 negotiations with guarantees of additional “wraparound services,” such as access to onsite social workers and school counselors.