blast from the past

Who is Dan Loeb? The billionaire investor who chairs Success Academy’s board has a checkered past

A screenshot taken from an American Enterprise Institute event published in 2014.

Success Academy’s board chairman and major charter school donor Daniel Loeb made headlines this month for posting a racially charged comment on Facebook that compared an African-American New York state senator with the Ku Klux Klan.

Loeb deleted the post, apologized, and left Success Academy and other charter school organizations scrambling to condemn his behavior — and explaining why he would remain on their boards.

Loeb represents a double-edged sword for charter schools. He is a wealthy and well-connected hedge fund manager, who has given millions of dollars to the charter school cause. But his actions force Success Academy CEO Eva Moskowitz and other charter leaders to make a calculation: Is his behavior a fair price to pay for the boost to their cause?

So far, they have apparently decided that it is. He has not yet been removed from Success’s board. Here are other things Eva Moskowitz has had to grapple with — which include a string of insensitive comments, but also his support for other progressive causes— as she has navigated her relationship with Loeb over the years:

He’s a nonpartisan ally — and antagonist. Loeb supports both Democrats and Republicans, and he also attacks candidates and lawmakers on both sides of the aisle. For example, he’s a major backer of New York Gov. Andrew Cuomo, but he has given to Republican mayoral candidate Nicole Malliotakis and supported Mitt Romney in past presidential campaigns. At the same time, he has lashed out at both Hillary Clinton and Barack Obama, often in withering and offensive terms, while also telling friends he would not vote for Donald Trump.

This isn’t the first offensive comment he’s made. Far from it, in fact. Loeb is fast-fingered on Facebook and frequently uses derogatory language to lash out at people who have made him unhappy. Here are a few of the examples that have been reported previously:

  • Another time Loeb compared the unions and their supporters to the KKK: Loeb posted the following on his Facebook page in 2016, first reported by Dealbreaker: “If you truly believe that education is the dividing line (and I concurr) then you must recognizer and take up the fight against the teachers union, the biggest single force standing in the way of quality education and an organization that has done more to perpetuate poverty and discrimination against people of color than the KKK.”
  • Using a derogatory term for people of color: Loeb once got into a fight with Fairfax Financial, a Canadian insurance company, which resulted in a lawsuit. Reported Reuters in 2011: “Fairfax’s filing quotes Loeb as saying he found the situation somewhat ironic because “the odds are much greater of being strung up by a Canadian Jew than a Canadian schwarze.” Loeb, who is Jewish, used “schwarze,” a derogatory Yiddish word for a black person, to describe Watsa, who is of Indian ancestry.”
  • Making light of domestic violence by comparing Obama to an abuser: In a 2010 letter to hedge fund managers who had supported Obama, Loeb wrote, according to CNBC: “I am sure, if we are really nice and stay quiet, everything will be alright and the President will become more centrist and that all his tough talk is just words; I mean he really loves us and when he beats us, he doesn’t mean it; he just gets a little angry.”
  • Making a xenophobic, homophobic attack against a rival: A damning 2013 Vanity Fair profile dredged up an anecdote from 1999, when Loeb was feuding with John Liviakis, a San Francisco public-relations executive. In an “imaginary monologue” in the voice of Liviakis, Loeb wrote under a pseudonym: “Then I will laugh at you fools for buying my shares and I will celebrate with a bottle of grappa, some fresh feta, and a nice young boy-just like in the old country.” Liviakis sued him for libel.

Loeb’s allies say his mean-spirited comments don’t necessarily reflect deep-seated beliefs. “I have known Dan to be a champion for underserved children who has worked tirelessly for years on their behalf,” said Jenny Sedlis, the head of StudentsFirstNY and a former deputy to Moskowitz, last week. “I know from first-hand experience the post he made does not reflect his true beliefs or the person he is.”

He has championed progressive causes in the past. Most notably, Loeb helped get gay marriage on the books in New York by throwing his influence into winning over Senate Republicans. This position put him in line with most Democrats and with Moskowitz, who has had wide support in New York City’s gay community for nearly 20 years. It also suggests that some of his internet posts, which have included seemingly homophobic comments, do not necessarily reflect the entirety of his beliefs.

It’s also not his first ethical challenge. Loeb had an account on the marital cheating site Ashley Madison, though he later said he did not use the site to engage or meet anyone on the site. He also has garnered criticism for the way he uses online message boards, where some business insiders say he plays fast and loose with federal regulations about the ways hedge fund operators can communicate with investors. And multiple accounts have him hitting a Cuban child with his car during a vacation in 2002, although he and his friends tell different versions of that story.

His friends and investors have their own problems. At Third Point Management, Loeb manages $17 billion and has a host of high-profile investors — including someone else who landed in hot water for speaking freely this summer. Anthony Scaramucci told Vanity Fair that Loeb was “one of the best investors of his generation. . . . He is the guy that would chew through the wallboard to create a return for his investors.” At the time, Scaramucci had invested about 10 percent of his own fund’s $500 million with Loeb. Now, of course, he’s better known as the man who served for 10 days as Trump’s White House communications director before resigning after making a profanity-laden public attack on other White House officials.

breaking

A student is in custody after Noblesville West Middle School shooting that injured another student and teacher

Police asses the scene outside Noblesville High School after a shooting at Noblesville West Middle School on May 25, 2018 (Photo by Kevin Moloney/Getty Images)

A male student shot and injured a teacher and another student at Noblesville West Middle School on Friday morning, police said.

Noblesville police Chief Kevin Jowitt said the shooting suspect asked to leave a class and returned armed with two handguns. The suspect, who police said appeared to be uninjured, is in custody and has not been identified by police.

The teacher, 29-year-old Jason Seaman, was in “good” condition Friday evening at Indiana University Health Methodist Hospital, police said. The female student, who was not identified by police, was in critical condition at Riley Hospital for Children.

News outlets were reporting that Seaman intervened to stop the shooter, but authorities said they could not confirm that on Friday afternoon.

The Noblesville Police Department has a full-time school resource officer assigned to the school who responded to the incident, Jowitt said. Local, state, and federal law enforcement agencies also responded to the shooting.

“We do know that the situation resolved extremely quickly,” Jowitt said. “We don’t know what happened in the classroom, so I can’t make any kinds of comments about what [the resource officer’s] involvement was.”

Students were evacuated to Noblesville High School on Friday morning, where families met them.

Jowitt said an additional threat was made at the high school, but they had “no reason to believe it’s anything other than a communicated threat.”

Police continue to investigate. They said they do not believe there are additional suspects. Noblesville Police spokesman Bruce Barnes could not say how the student acquired the guns, but he said search warrants have been issued.

Noblesville West Middle School enrolls about 1,300 students. Noblesville is a suburb of Indianapolis, about 20 miles north in Hamilton County. The district has about 10,500 students.

The frenzied scenes Friday outside the school have become sadly familiar. Already, there have been 23 school shootings in 2018 that involved someone being injured or killed, according to media tallies.

Just last week, 10 people were killed and 13 others were injured in a shooting at Santa Fe High School outside Houston. A student at the school has been arrested and charged.

In February, 17 people — 14 students and three staff — were shot and killed at Marjory Stoneman Douglas High School in Parkland, Florida, and a 19-year-old faces multiple charges.  The Parkland tragedy set off a wave of student activism across the country — including in Indianapolis — calling for stricter gun control.

“We’ve had these shootings around the country,” said Noblesville Mayor John Ditslear. “You just never think it could happen in Noblesville, Indiana. But it did.”

Noblesville Schools Superintendent Beth Niedermeyer praised the “heroic” efforts of school staff and students, saying they followed their training on how to react to an active shooter situation.

Barnes also hinted at the broader trauma that school shootings can have on students and communities.

“We ask for your prayers for the victims in this case,” he said. “I think that would include a lot of kids, not only ones that were truly the victims in this case, but all these other kids that are trying to make sense of this situation.”

Watch the press conference:


A Chalkbeat reporter is on the scene:

In a pattern that has become routine, Democratic and Republican politicians offered prayers on Twitter.

temporary reprieve

Parents score a temporary victory in slowing the closure of a small Brooklyn elementary school

PHOTO: Alex Zimmerman
Protesters gathered at the education department's headquarters to protest a recent set of closure plans.

A judge blocked the closure of a small Brooklyn elementary school Thursday — at least for now.

Three families from P.S. 25/the Eubie Blake School filed a lawsuit in March backed by the public interest group Advocates for Justice, arguing the city’s decision to close the school was illegal because the local elected parent council was not consulted.

Brooklyn Supreme Court judge Katherine Levine did not make a final ruling Thursday about whether the closure plan violated the law. But she issued a temporary order to keep the school open while the case moves forward.

It was not immediately clear when the case will be resolved or even if the school will remain open next year. “We are reviewing the stay and will determine an appropriate course of action once the judge makes a final decision on the case,” education department spokeswoman Toya Holness wrote in a statement.

The education department said the school has hemorrhaged students in recent years and is simply too small to be viable: P.S. 25 currently enrolls just 94 students in grades K-5.

“Because of extremely low enrollment, the school lacks the necessary resources to meet the needs of students,” Holness wrote. The city’s Panel for Educational Policy, a citywide oversight board that must sign off on all school closures, voted in February to close the school.

But the school’s supporters point out that despite low test scores in the past, P.S. 25 now ranks among the city’s top elementary schools, meaning that its closure would force students into lower-performing schools elsewhere.

“Why close a school that’s doing so well?” said Leonie Haimson, the executive director of Class Size Matters and one of the lawsuit’s supporters. “It doesn’t make sense to me.”

The lawsuit hinges on a state law that gives local education councils the authority to approve any changes to school zones. Since P.S. 25 is the only zoned elementary school for a swath of Bedford-Stuyvesant, the department’s plans would leave some families with no zoned elementary school dedicated to educating them, forcing students to attend other district schools or enter the admissions lottery for charter schools.

That amounts to “effectively attempting to change zoning lines” and “unlawfully usurping” the local education council’s authority to determine those zones, according to the lawsuit.

But even if the education department loses the lawsuit, the school’s fate would still be uncertain. The closure plan would theoretically be subject to a vote from the local education council, whose president supports shuttering the school.

Still, Haimson hopes the lawsuit ultimately persuades the education department to back away from closing the school in the long run.

“My goal would be to get the chancellor to change his mind,” Haimson said. “I don’t think the future is preordained.”