November 14, 2021

Editorial: Epic saga is not over, lawmakers and law enforcement need to do more - Tulsa World

Epic Investigation

State Auditor Cindy Byrd makes remarks on an investigation into Epic Charter Schools on Oct. 1, 2020.

Tulsa World file

New revelations and allegations about the Epic Charter Schools founders from Oklahoma State Auditor and Inspector Cindy Byrd ought to light a fire under lawmakers and law enforcement.

At a meeting of the Republican Women's Club of Tulsa County on Tuesday, Byrd detailed her investigative audit of the public virtual charter school released last year. It uncovered millions in excessive administrative spending and questionable handling of $145 million in taxpayer funds.

Since then, the founders — Ben Harris and David Chaney — have faced little to no consequence. A demand from Oklahoma State Board of Education to repay $11.2 million has gone ignored.

Byrd made clear to the crowd that Harris, Chaney and their chief financial officer, Josh Brock, have not been exonerated. She said the term of the Oklahoma multicounty grad jury looking into possible charges expired "before the case was finished," according to reporter Andrea Eger.

"This is far from over. The criminality of this cannot be ignored. There will be charges," Byrd said.

Most outrageous is that inaction by legislators and law enforcement for the past 13 months left open the possibility for Harris and Chaney to pocket another $80 million for this fiscal year.

Specifics in audits are usually boring, but the audience audibly gasped when Byrd explained new accusations. Those included routinely falsified invoices and monthly charges of $600,000 for land and $37,000 for food service for students learning at home.

Byrd took the founders to court to compel the release of records showing they dipped into the $145 million in tax money tucked away in private company accounts. They used personal credit cards to make millions in purchases for students out of those accounts.

The founders were generous political donors before the audit and stepped up their giving after its release. At least one incumbent lawmaker was ousted in part due to the founders' donations to a challenger. Byrd spent a year staving off attacks on her staff for the audit work.

Byrd said their political influencing comes through campaign contributions, political action committees, dark money PACs, lobbying and even philanthropic groups. She called the money flow "beyond measurement."

That it seems to have worked so far is appalling. We are frustrated that the Epic founders are not being held to the same standard of every other public official and school administrator.

State Republican leadership pivoted away from the Epic founders to call for an audit of the Oklahoma State Education Department, which is led by Joy Hofmeister who recently changed her political party to challenge Gov. Kevin Stitt.

Byrd noted the education audit stemmed from the one on Epic. But we are concerned about the conflation of those, particularly considering the political backdrop.

For now, leaders need to focus on closing the circle on the allegations against the Epic founders, and legislators continue leveling the field between virtual charter and traditional public districts.

Featured video:

Epic co-founder Ben Harris audio from Jan. 14, 2021

Epic Charter Schools: A Tulsa World investigation

Epic founders 'gaslit a lot of people, and it's time to stop,' new chairman says of charter school financials

Epic founders 'gaslit a lot of people, and it's time to stop,' new chairman says of charter school financials

Oct. 5, 2021: Epic Charter Schools’ new governing board chairman, Paul Campbell, told lawmakers in October that they had been “gaslighted” for years by Epic’s recently ousted founders, suggesting that they now would be open to legislation intended to prevent millions in taxpayer dollars from being paid to “grifters.”

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Andrea Eger, Tulsa World file

Oklahoma virtual school board members resign unexpectedly

Oklahoma virtual school board members resign unexpectedly

From Sept. 13, 2021: Two state officials who had been scrutinized over connections to Epic Charter Schools have resigned unexpectedly from the state agency overseeing virtual education programs.

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Epic settlement monitor says Learning Fund billing didn't match enrollment

Epic settlement monitor says Learning Fund billing didn't match enrollment

From June 24, 2021: Epic One-on-One’s 2020-21 Learning Fund bills were based on the total number of students enrolled at any point during a two-month window rather than on its confirmed enrollment, document reviews by a settlement compliance monitor show.

Addressing the Statewide Virtual Charter School Board on June 24, Skylar Lusnia told the board that his review of the online charter school’s financial records show that its former management company, Epic Youth Services, invoiced Epic One-on-One $39.5 million for its 2020-21 Learning Fund.

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Tulsa World File photo

Epic's overhauled governing board inks licensing agreement

Epic's overhauled governing board inks licensing agreement

From June 21, 2021: Epic Charter Schools’ recently overhauled governing board just inked a new agreement that will send $2.5 million in taxpayer dollars to a technology firm owned by the brother of the board’s immediate past chairman.

According to school officials, Futuristic Education has worked on Epic’s school management and student information system for the last seven years under contract with Epic Youth Services, the for-profit school management company that made Epic school founders David Chaney and Ben Harris millionaires.

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Screengrab from livestream

Epic Charter Schools approves $335.5 million budget

Epic Charter Schools approves $335.5 million budget
From June 16, 2021: Epic Charter Schools' governing board voted unanimously in favor of the $335.5 million budget. Click here to read more

Epic now wants in on spending records State Auditor won in court

Epic now wants in on spending records State Auditor won in court

From June 5, 2021: Epic Charter Schools went to court seeking the same access to student Learning Fund spending records controlled by its now former management company that was just granted to Oklahoma’s State Auditor.

Epic Youth Services, the for-profit school management company owned by school co-founders David Chaney and Ben Harris, was ordered last week to turn over all records of purchases and bank statements related to the school’s Learning Fund for student needs.

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State auditor wins access to Epic's spending records

State auditor wins access to Epic's spending records
From May 30, 2021: Epic Charter Schools’ founders not only lost their hold on the school system that made them millionaires, but they also apparently lost their fight in court to block the Oklahoma state auditor and inspector from reviewing their bank and credit card statements. According to public records filed in Oklahoma County District Court on May 28, a judge has directed Epic Youth Services, the for-profit school management company owned by Epic co-founders David Chaney and Ben Harris, to turn over all records of purchases and bank statements related to Epic’s Learning Fund for student needs. Click here to read more

Epic governing board severs all ties with co-founders' for-profit firm and California school

Epic governing board severs all ties with co-founders' for-profit firm and California school

From May 26, 2021: The governing board of Epic Charter Schools underwent a major overhaul and then declared its independence from the for-profit school management company owned by Epic’s co-founders.

Epic’s seven-member board of education unanimously approved a mutual termination agreement, effective July 1, to end its contract with Epic Youth Services, which reportedly has made millionaires of founders David Chaney and Ben Harris.

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Charter school reforms related to Epic investigation sail through Oklahoma House

Charter school reforms related to Epic investigation sail through Oklahoma House

From May 24, 2021: The Oklahoma House voted 81-17 on Monday on new safeguards and greater transparency requirements for charter schools managed by outside vendors.

The fate of last-minute legislation House Bill 2966 now rests in the hands of the Oklahoma Senate, and it is unclear whether the bill will be heard in that chamber before the Legislature adjourns later this week.

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Oklahoma virtual charter school board could reinstate member

Oklahoma virtual charter school board could reinstate member

From May 24, 2021: A state official who lost his vote over Epic Charter Schools because of a perceived conflict of interest is on the brink of having his recusal overturned.

Mathew Hamrick sued the Oklahoma Statewide Virtual Charter School Board and the board’s executive director on April 13 to regain voting power on Epic-related matters.

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Courtesy photo

House leadership moving forward with multicounty grand jury recommendations

House leadership moving forward with multicounty grand jury recommendations

From May 21, 2021: Leadership in the Oklahoma House of Representatives is moving forward with legislation based on the extraordinary and urgent call to action by the multicounty grand jury probing the Epic Charter Schools saga.

House Bill 2966 is scheduled to be introduced on the floor and voted on by the House of Representatives.

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Tulsa World File photo

House leadership taking up multicounty grand jury recommendations

House leadership taking up multicounty grand jury recommendations

From May 10, 2021: Members of the Oklahoma House of Representatives are dusting off legislation that lay dormant and considering other new recommendations because of last week’s call to action by the state’s multicounty grand jury, which has been investigating Epic Charter Schools.

Asked if anything would be done by the Legislature during the session that ends May 28, House Speaker Charles McCall, R-Atoka told the Tulsa World: “In light of the grand jury recommendations, the House will explore options to advance pending legislation filed earlier this session pertaining to those recommendations if possible within the three weeks remaining in the constitutional session. Additional recommendations that may come upon the conclusion of the many ongoing inquiries into Epic will be reviewed in the legislative interim for future consideration.”

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Tulsa World File photo

Multicounty grand jury blasts use of private accounts for taxpayer money

Multicounty grand jury blasts use of private accounts for taxpayer money

From May 6, 2021: Oklahoma’s multicounty grand jury issued a wake-up call to the public, state policymakers and Epic Charter Schools parents themselves about the financial practices of the founders and operators of the state’s largest school system.

In a rare, inside look at an ongoing criminal inquiry, the grand jury filed in Oklahoma County District Court an interim report outlining the need for new safeguards and greater transparency requirements before even more taxpayer dollars are allocated to Epic.

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Photo via The Oklahoman

School Board ends Epic termination proceedings as part of deal

School Board ends Epic termination proceedings as part of deal

From April 27, 2021: A deal has been reached to end sponsorship termination proceedings against Oklahoma’s largest online charter school.

In a teleconference meeting lasting less than 15 minutes, the Statewide Virtual Charter School Board voted without debate or discussion to approve a consent agreement with Epic Charter Schools.

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Tulsa World File photo

Epic Charter Schools board accepts final list of demands

Epic Charter Schools board accepts final list of demands

From April 22, 2021: A deal apparently has been struck to end contract termination proceedings that have been underway for six months against Epic Charter Schools by the sponsor of its statewide virtual charter school.

Epic’s governing board met for three hours behind closed doors before returning to open session and voting to agree to proposed final consent agreement terms put forth by the Statewide Virtual Charter School Board one day earlier.

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Board gives Epic's governing board final list of demands

Board gives Epic's governing board final list of demands

From April 21, 2021: In the back-and-forth over alleged contract violations, the Statewide Virtual Charter School Board voted to give Epic Charter Schools one last opportunity to come to an agreement that would halt termination proceedings.

The board heard a presentation on a proposed consent agreement by Epic’s attorney Bill Hickman and then Oklahoma Assistant Attorney General Marie Schuble’s recommendation that the board not approve it.

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Courtesy photo

State virtual school board member sues

State virtual school board member sues

From April 17, 2021: A member of the state agency overseeing virtual education is suing that same agency to overturn his disqualification from discussions and votes on Epic Charter Schools.

Mathew Hamrick filed a lawsuit against the Oklahoma Statewide Virtual Charter School Board in Oklahoma County District Court.

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Epic Charter Schools slapped with new $10.5 million penalty

Epic Charter Schools slapped with new $10.5 million penalty

From April 16, 2021: For the second year in a row, Oklahoma State Department of Education officials say Epic Charter Schools' own spending reports to the state reflect administrative costs well above statutory limits for all public schools and the school remains out of compliance with mandatory school cost accounting.

The state’s largest school system was notified in a letter that it is being assessed penalties totaling at least $10.5 million over the remainder of the fiscal year ending June 30 for both its schools, Epic One-on-One and Epic Blended Learning Centers.

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Tulsa World File photo

Epic Charter Schools board makes 11th-hour attempt to settle termination proceedings

Epic Charter Schools board makes 11th-hour attempt to settle termination proceedings

From April 15, 2021: Epic Charter Schools’ governing board has decided to offer up an eleventh-hour settlement to the Statewide Virtual Charter School Board in an effort to halt termination proceedings that call into question the future of one of Epic’s two schools.

In a 12:20 a.m. May 14, 2021 vote, Epic board members gave unanimous approval to the terms of a “consent agreement,” which their attorney will deliver to the Statewide Virtual Charter School Board for consideration.

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Zoom video meeting screengrab

Epic board votes to change secret Learning Fund

Epic board votes to change secret Learning Fund

From April 14, 2021: Governing board members for Epic Charter Schools just voted to make a change that will end one of the school’s most controversial accounting practices used to shield the use of tens of millions of taxpayer dollars over the last decade.

Epic’s Learning Fund dollars for student needs will be placed in new bank accounts solely under school personnel control beginning July 1.

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Legislation to negate board decision would send medical marijuana money to some charter schools

Legislation to negate board decision would send medical marijuana money to some charter schools

From April 7, 2021: Legislation intended to effectively negate a state school board decision would create a new structure for charter schools, including a “building fund” financed by the existing medical marijuana tax.

The new legislation was triggered by the State Board of Education’s 4-3 vote to settle a long-standing lawsuit with a charter school organization in such a way as to make tens of millions of dollars in local school taxes available to charter schools.

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Tulsa World File photo

Statewide virtual school board sets termination proceedings

Statewide virtual school board sets termination proceedings

From April 6, 2021: The Statewide Virtual Charter School Board has voted to move ahead with contract termination proceedings against Epic Charter Schools in a two-day trial set for May 12-13.

At a meeting, all three board members present also voted to deny Epic’s motion to dismiss the termination proceedings altogether.

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House to get legislation addressing issues raised by charter schools decision

House to get legislation addressing issues raised by charter schools decision

From April 5, 2021: Legislation prompted by a controversial State Board of Education vote last week is expected to be introduced in the Oklahoma House of Representatives Common Education Committee.

Rep. Kyle Hilbert, R-Bristow, confirmed that he intends to file a committee substitute to Senate Bill 229 that would bar virtual charter schools from receiving local building fund revenue.

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Tulsa World File photo

TPS demands state board rescind vote on state funding lawsuit

TPS demands state board rescind vote on state funding lawsuit

From March 29, 2021: Tulsa Public Schools demanded that the Oklahoma State Board of Education rescind its Thursday vote that could have the practical effect of redistributing tens of millions of state dollars to charter schools.

Superintendent Deborah Gist said to distract from how underfunded as a whole Oklahoma’s public school system is, state leaders are pitting different kinds of public school leaders against one another.

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Photo by STEPHEN PINGRY/Tulsa World File

Majority of state ed board votes to settle years-old charter schools lawsuit

Majority of state ed board votes to settle years-old charter schools lawsuit

From March 26, 2021: The Oklahoma State Board of Education split 4-3 in voting to settle a years-old lawsuit seeking tens of millions more in the share of state taxpayer dollars that all charter schools receive. The move came against the strong objections of State Superintendent Joy Hofmeister and apparently the legal advice of the board’s own attorney. In her public comments during the remote meeting, Hofmeister made a point of revealing that the settlement offer had been received only one day earlier.

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Video screengrab

State board's deadline for $11.2 million repayment by Epic passes with no payment

State board's deadline for $11.2 million repayment by Epic passes with no payment

From March 24, 2021: Oklahoma State Department of Education officials say the deadline for Epic Charter Schools to repay $11.2 million passed without payment and they are considering next steps and reviewing Epic’s latest response to the state auditor’s findings.

“As required by statute, this matter will be on Thursday’s State Board of Education agenda to consider their response and determine next steps, which may include litigation,” said State Superintendent Joy Hofmeister, in a written response to the Tulsa World.

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Tulsa World File photo

State Senate, House hear no bills related to Epic Charter Schools audit findings

State Senate, House hear no bills related to Epic Charter Schools audit findings

March 15, 2021: The State Auditor and Inspector’s report on Epic Charter Schools last fall included a host of recommendations for policymakers to consider to increase transparency and accountability for the use of tens of millions of taxpayer dollars every year.

So why have leaders in the Oklahoma Senate and House of Representatives not heard any legislation related to the forensic audit findings?

A coalition of 16 grassroots parent organizations for public schools across the state says it sees the Legislature’s inaction as a glaring omission in a session in which numerous education bills have been brought to the forefront.

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Epic co-founder's audit recommendations make it into legislation

Epic co-founder's audit recommendations make it into legislation
March 11, 2021: In Epic Charter Schools co-founder’s recommendations for how State Auditor and Inspector Cindy Byrd’s office operates found their way into a bill that passed the Senate floor.

Termination proceedings against Epic Charter Schools delayed once more

Termination proceedings against Epic Charter Schools delayed once more
State lawmakers this session have not yet taken up any legislation to address issues noted in a state audit of Epic Charter Schools.

$11.2 million repayment from Epic Charter Schools to state is delayed; public records lawsuit stalls

$11.2 million repayment from Epic Charter Schools to state is delayed; public records lawsuit stalls
Jan. 26, 2021: Epic Charter Schools’ deadline for repaying the state $11.2 million has been pushed back a month, and the State Auditor’s Office has reportedly identified additional administrative payroll cost violations, the Tulsa World has learned.

Epic Charter Schools adding human, financial resources to address deficiencies ID'd by state auditor

Epic Charter Schools adding human, financial resources to address deficiencies ID'd by state auditor
Jan. 25, 2021: Epic Charter Schools’ statewide virtual charter school added new hires and contracted with a second accounting firm in response to issues identified in a recent state investigative audit.

School funding adjusted: Tulsa County districts down $31 million; Epic gains $156 million

School funding adjusted: Tulsa County districts down $31 million; Epic gains $156 million

Jan. 12, 2021: An influx of new students netted Epic Charter Schools’ two primarily online school choices an additional $156 million, while four other growing online schools picked up another $13.9 million.

But about 500 of the state’s 509 school districts and 31 charter schools saw reductions, with almost 120 of those down 10% or more from what the state told them to expect in late August.

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School finance chiefs call on state leaders to intervene before hike in funding to Epic Charter Schools

School finance chiefs call on state leaders to intervene before hike in funding to Epic Charter Schools
Dec. 11, 2020: In a letter sent this week, chief financial officers from 14 school districts called on state leaders to see to it that Epic’s upcoming midyear adjustment in state funding be “stayed or modified” until Epic’s student “enrollment numbers and other business practices are verified to be lawful and compliant.” It was signed by district officials from Tulsa, Ardmore, Bartlesville, Broken Arrow, Enid, Lawton, Moore, Muskogee, Mustang, Norman, Putnam City, Tahlequah, Union and Yukon. Click here to read more

Two board members barred from all Epic Charter Schools matters over conflict-of-interest concerns

Two board members barred from all Epic Charter Schools matters over conflict-of-interest concerns
Dec. 9, 2020: In two separate votes, the board voted 3-2 to recuse Mathew Hamrick and Phyllis Shepherd from discussions, debates and votes on Epic One-on-One, Oklahoma’s largest virtual school.

Epic Charter Schools' board amends contract with for-profit management company, directs accounting practice changes

Epic Charter Schools' board amends contract with for-profit management company, directs accounting practice changes

Dec. 8, 2020: In a meeting that went late into the night, the governing board at Epic Charter Schools passed yet another resolution directing a host of accounting and oversight changes and amending its contract with a for-profit school management company.

Board members and their attorney said the actions on behalf of Epic One-on-One, Oklahoma’s largest virtual school, were in response to various concerns and deficiencies identified recently by the Oklahoma State Department of Education, the State Auditor and Inspector’s Office and the Statewide Virtual Charter School Board.

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Courtesy photo

Governor removes board president leading inquiries into Epic

Governor removes board president leading inquiries into Epic

Nov. 14, 2020: Gov. Kevin Stitt removed the president of the Statewide Virtual Charter School Board who recently led the initiation of termination proceedings against Epic Charter Schools and challenged two other board members about potential conflicts of interest with Epic.

John Harrington was notified by Stitt’s newly appointed secretary of education that his service on the Statewide Virtual Charter School Board was over effective immediately.

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Photo by MATT BARNARD/Tulsa World

Epic Charter Schools gets a pass on accreditation downgrade

Epic Charter Schools gets a pass on accreditation downgrade

Nov. 12, 2020: The Oklahoma State Board of Education chose to put off the advice of its attorney to take punitive action against the state accreditation of Epic Charter Schools.

General Counsel Brad Clark presented to the board records he said showed a years-long history of Epic’s “nonresponsiveness and noncompliance” with state Department of Education requests for information about its use of taxpayer dollars — and new deficiencies discovered in reviews of Epic’s federally funded programs for special education and homeless students and English learners.

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Zoom meeting screengrab

Lawmakers call for audit of State Department of Education

Lawmakers call for audit of State Department of Education

Nov. 11, 2020: Some Republican lawmakers are calling for an audit of the State Department of Education, citing a recent audit that found problems with Epic Charter Schools and the agency. “If the state auditor is correct in her assessment that the State Department of Education repeatedly neglected its responsibility to ensure compliance with OCAS (Oklahoma Cost Accounting System) and other required reports, one must ask if this dereliction of duty was confined solely to Epic Charter Schools or if it permeates throughout or public education system,” said a statement released by the lawmakers. “If SDE did in fact routinely fail to perform its regulatory duties, this could result in the discovery of hundreds of millions of dollars of misused funds.”

<&underline>Click here to read more</&underline> Photo by MATT BARNARD/Tulsa World

Tulsa lawmaker vows systemic overhaul

Tulsa lawmaker vows systemic overhaul
Oct. 27, 2020: Rep. Sheila Dills, R-Tulsa, announced that she is working on legislation that could significantly alter Oklahoma’s system for overseeing public school finances to “protect taxpayers.”

Epic Charter Schools governing boards respond to recent actions by two state education boards

Epic Charter Schools governing boards respond to recent actions by two state education boards
Oct. 21, 2020: An Epic Charter Schools’ governing board member called the findings of a state investigative audit and the resulting actions by two separate state education boards “politically motivated.”

Epic Charter Schools board member resigns amid state audit fallout

Epic Charter Schools board member resigns amid state audit fallout
Oct. 20, 2020: One of Epic Charter Schools’ governing board members has resigned amid fallout from the state’s new investigative audit findings.

Education policy leaders from state Senate, House reflect on Epic Charter Schools audit findings

Education policy leaders from state Senate, House reflect on Epic Charter Schools audit findings

Oct. 19, 2020: The State Auditor and Inspector’s report on Epic Charter Schools included a host of recommendations for policymakers to consider to increase transparency and accountability for the use of taxpayer dollars in the future.

So what do education policy leaders from the Oklahoma State Senate and House of Representatives make of the forensic audit findings?

Most said the need for additional legislation was made clear — and none gave any credence to Epic’s claims that State Auditor Cindy Byrd’s findings were politically motivated or rooted in opposition to charter schools or parent school choice.

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Photo by MATT BARNARD/Tulsa World

Statewide Virtual Charter School Board member is relative of Epic co-founder

Statewide Virtual Charter School Board member is relative of Epic co-founder

Oct. 15, 2020: The lone member of the Statewide Virtual Charter School Board to vote no on termination proceedings against Epic Charter Schools this week is a family member of one of the school’s two co-founders who have reportedly become millionaires through their deal to manage the school.

In multiple public social media posts, board member Phyllis Shepherd wished Epic’s David Chaney “Happy birthday, nephew” and signed anniversary well wishes to him from “Aunt Phyllis.”

A tip-off to the posts prompted the Tulsa World to track down public genealogy records that show Chaney and Shepherd are related on Chaney’s father’s side of his family.

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Statewide Virtual Charter School Board votes to begin contract termination process against Epic Charter Schools

Statewide Virtual Charter School Board votes to begin contract termination process against Epic Charter Schools
Oct. 13, 2020: The Statewide Virtual Charter School Board voted Tuesday, Oct. 13 to begin contract termination proceedings against Epic Charter Schools based on the state’s new forensic audit.

State education board demands $11.2 million back from Epic Charter Schools over state audit findings

State education board demands $11.2 million back from Epic Charter Schools over state audit findings

Oct. 12, 2020: The Oklahoma State Board of Education voted unanimously to demand back $11.2 million in taxpayer funding from Epic Charter Schools based on an investigative audit that identified chronically excessive administrative overhead costs and inaccurate cost accounting.

Brenda Holt, audit manager for the special investigative unit of the State Auditor and Inspector’s Office, detailed the new state audit findings for the board.

“Oversight as a whole was weak. There was very little verification of the underlying documentation from Epic,” Holt told the board. “The information was taken at face value.”

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Photo by MATT BARNARD/Tulsa World

Lawmakers announce joint hearing on Epic Charter Schools audit

Lawmakers announce joint hearing on Epic Charter Schools audit
Oct. 12, 2020: State lawmakers announced that they will hold a joint hearing to go over an investigative audit critical of Epic Charter Schools.

Oklahoma AG's Office takes reins in Epic Charter Schools investigation

Oklahoma AG's Office takes reins in Epic Charter Schools investigation
Oct. 12, 2020: The state attorney general has appointed special counsel to take over a review of Epic Charter Schools after the results of an investigative audit prompted Oklahoma’s superintendent of schools to vow to recoup millions in taxpayer dollars. Attorney General Mike Hunter said Oct. 12 in a news release that Melissa McLawhorn Houston will serve as special counsel in the matter, and that he has recused himself and many in his office from further review of the audit due to their involvement in several Epic-related investigations and litigation. The office also serves as counsel to the Virtual Charter School Board, which on Oct. 13 could vote to terminate the contract with Epic. Click here to read more

State education board calls special meeting on Epic Charter Schools audit

Oct. 9, 2020: A special meeting of the Oklahoma State Board of Education has been called to discuss the newly released findings of the state’s forensic audit of Epic Charter Schools.

The meeting is to be conducted virtually beginning at 11 a.m. Oct. 12, according to the agenda posted Oct. 9 morning.

That agenda includes a presentation and discussion about the audit and a possible executive session with the board’s legal counsel “concerning a pending investigation, claim or action” concerning Epic.

Superintendent Hofmeister responds to accountability failures cited in state audit of Epic Charter Schools

Oct. 5, 2020: State Superintendent Joy Hofmeister is vowing to take new actions to “recoup” millions in taxpayer dollars from Epic Charter Schools amid a new forensic audit that paints a damning picture of her administration’s handling of Epic for many years.

The office of State Auditor and Inspector Cindy Byrd found within the Oklahoma State Department of Education an accounting system preoccupied with school district compliance — with little to no verification of the information they report or accountability for falsehoods or other failings.

In an interview with the Tulsa World, Hofmeister pointed to an earlier reporting deadline imposed on schools last year that already resulted in the state Board of Education slapping Epic with a $530,000 penalty.

Photo by CHRIS LANDSBERGER/The Oklahoman

'Epic owes Oklahoma $8.9 million': Improper transfers, chronic misreporting found by state auditor's investigation

Oct. 2, 2020: The Oklahoma State Auditor and Inspector’s much-anticipated investigative audit of Epic Charter Schools has found it sends about 1 in 4 taxpayer dollars it receives as a public school to its co-founders’ for-profit company.

Part I of what is expected to be a two-part report documented accounting practices that allowed Ben Harris and David Chaney’s Epic Youth Services charter school management company to boost their earnings by nearly $2 million amid lax school board oversight and little to no accountability for Epic schools’ chronically inaccurate cost reporting to state education officials.

In all, $125.2 million of the $458 million allocated to Epic Charter Schools for educating students the past six years ended up in the coffers of EYS, according to State Auditor and Inspector Cindy Byrd.

Photo by CHRIS LANDSBERGER/The Oklahoman

Officials call Epic audit findings 'concerning,' 'deeply disturbing,' 'troubling'

Oct. 1, 2020: Although the state audit of Epic Charter Schools took more than a year to complete, reactions to some of its findings on Oct. 1 came much more swiftly.

The first of what is expected to be a two-part report — which detailed improper transfers, chronic misreporting of costs and lax oversight — was released Oct. 1 afternoon by State Auditor Cindy Byrd in conjunction with a news conference.

“While we are still reviewing the entire contents of the audit, the initial findings are concerning,” said Gov. Kevin Stitt, who called for the audit last year.

Photo via The Oklahoman

Key findings and conclusions from the Oct. 1, 2020, report

Key findings and conclusions from the Oct. 1, 2020, report
Epic One-on-One and Epic Blended Learning Centers paid EYS, the school co-founders' for-profit management company a total of $79.3 million in taxpayer money for student learning needs in lump sum payments first detailed to the public in an investigation by the Tulsa World. But EYS has blocked the state auditor access to records of how those public dollars are being spent.

Key findings and conclusions from the Oct. 1, 2020, report

Key findings and conclusions from the Oct. 1, 2020, report
Epic Youth Services “erroneously received” an excess of $686,0000 in management fees for the last five years, and the school’s own, handpicked auditors failed to identify the calculation issue year in and year out. The state auditor said EYS should return those dollars to the schools.

Key findings and conclusions from the Oct. 1, 2020, report

Key findings and conclusions from the Oct. 1, 2020, report
Epic Youth Services, the school co-founders' for-profit charter school management company, “improperly transferred” $203,000 in Oklahoma taxpayer dollars from the student Learning Fund account to help cover payroll shortages at Epic’s California charter school.

Key findings and conclusions from the Oct. 1, 2020, report

Key findings and conclusions from the Oct. 1, 2020, report
Epic has improperly commingled, or mixed, public dollars allocated for its two, separate charter schools, including the use of one single bank account for student Learning Funds for both schools. The audit also found $6 million in payments and $3.3 million in loans from one school to the other without school board approval.

Key findings and conclusions from the Oct. 1, 2020, report

Key findings and conclusions from the Oct. 1, 2020, report
Epic’s multi-year deals totaling $525,000, for the school’s promotional advertising and branding on playgrounds inside shopping malls in Tulsa and Oklahoma City violate the Oklahoma Constitution.

Epic Charter Schools targets state senator again in pre-election email to parents

Epic Charter Schools targets state senator again in pre-election email to parents
Aug. 25, 2020: Epic Charter Schools’ feud with a state senator who has questioned how it reports some of its student enrollment and attendance has continued through the eleventh hour before Tuesday (Aug. 25)’s primary runoff election.

Epic Charter Schools founders and backers keep up campaign influence spending amid state investigations

Epic Charter Schools founders and backers keep up campaign influence spending amid state investigations

Aug. 21, 2020: The operators of Epic Charter Schools and their backers have continued to promote and protect their political interests at the state Capitol by donating to candidates as law enforcement and state auditor’s investigations have been underway.

A review of the state’s campaign finance records through Aug. 17 show those with ties to Epic Charter Schools have contributed $73,660 to various candidates and causes since January 2019.

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State senator sued by Epic Charter Schools awarded legal fees plus $500,000 in sanctions

State senator sued by Epic Charter Schools awarded legal fees plus $500,000 in sanctions
Aug. 13, 2020: A judge ordered Epic Charter Schools to pay a state senator it had targeted in a libel and slander lawsuit $36,000 for his legal fees plus $500,000 in sanctions.

Enrollment already up 77% across Oklahoma's six virtual charter schools amid COVID-19 pandemic

Enrollment already up 77% across Oklahoma's six virtual charter schools amid COVID-19 pandemic
Aug. 12, 2020: Parents looking to forgo any in-school instruction for 2020-21 have already sent student enrollment in Oklahoma’s statewide online public schools sky high, according to new information from a state education agency.

Epic co-founder claims innocence in new video address amid back-to-school student recruiting drive

Epic co-founder claims innocence in new video address amid back-to-school student recruiting drive

July 30, 2020: One of the co-founders of Epic Charter Schools took to YouTube and addressed parent skepticism of the school because of the still-looming law enforcement investigation and state investigative audit into its use of public funds.

In the newly posted video, Ben Harris said Epic is seeing an extraordinary spike in enrollment in its online school model because of the COVID-19 pandemic and that he hopes families looking for a new alternative “shed any concerns they have about Epic because of what they have seen in the news.”

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Tulsa World File photo

Epic becomes Oklahoma's largest school district as pandemic pushes virtual enrollment

Epic becomes Oklahoma's largest school district as pandemic pushes virtual enrollment
July 23, 2020: Epic Charter Schools counted 38,026, making it the biggest district in the state.

Oklahoma Statewide Virtual Charter School Board wants to weigh in on court case involving Epic

Oklahoma Statewide Virtual Charter School Board wants to weigh in on court case involving Epic

July 15, 2020: The Oklahoma Statewide Virtual Charter School Board supports the position of the state auditor and inspector, who has gone to court over Epic’s lack of compliance with her public records requests and administrative subpoenas. At issue is Epic’s shielding its use of tens of millions of taxpayer dollars for something it calls the Learning Fund.

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State Chamber says no conflicts of interest in legal filing despite Epic Charter Schools' membership, school founder on Chamber board of directors

State Chamber says no conflicts of interest in legal filing despite Epic Charter Schools' membership, school founder on Chamber board of directors

May 27, 2020: The State Chamber of Oklahoma wants to intervene in the state’s legal effort to compel Epic Charter Schools’ for-profit operator to comply with an investigative audit but did not disclose to the court that Epic is a dues-paying member and its founder is on the chamber’s board of directors.

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Epic Charter Schools' for-profit management firm refuses to release documents to investigators, Oklahoma attorney general says

Epic Charter Schools' for-profit management firm refuses to release documents to investigators, Oklahoma attorney general says

March 5, 2020: The Oklahoma Attorney General’s Office went to court on Thursday because it says Epic Charter Schools’ for-profit operator has not been cooperating with the state’s investigative audit.

In July, Gov. Kevin Stitt requested an investigative audit of Epic and all its related entities by State Auditor and Inspector Cindy Byrd. But in a motion filed in Oklahoma County District Court on Thursday, the Attorney General’s Office says Epic Youth Services has been refusing to comply with the auditor’s public records requests or subpoenas for months. Read the story from Staff Writer Andrea Eger

Photo by JIM BECKEL/The Oklahoman

'Our kids have become a piggy bank': Epic Charter Schools shields $50M in taxpayer funds from public scrutiny

'Our kids have become a piggy bank': Epic Charter Schools shields $50M in taxpayer funds from public scrutiny
On top of a 10% cut of every dollar of revenue, Epic Charter Schools is paying its for-profit management company millions more in taxpayer dollars every year for school expenditures that are never audited and which Epic claims are shielded from public scrutiny.

Lawmakers accuse Epic of intimidation attempt with defamation lawsuit against state senator

Lawmakers accuse Epic of intimidation attempt with defamation lawsuit against state senator

Dec. 14, 2019: Tulsa-area lawmakers blasted Epic Charter Schools for suing a state senator for slander and libel over statements he reportedly made while questioning the school’s student attendance practices. Rep. Sheila Dills, R-Tulsa, called the lawsuit filed against Sen. Ron Sharp, R-Shawnee, an attempt to silence constituents whose concerns legislators are sworn to represent and an attempt to intimidate other lawmakers just before their first deadline to file bills for the upcoming 2020 session.

Read the story by Staff Writer Andrea Eger. STEPHEN PINGRY/Tulsa World file

Epic Charter Schools sues state senator who questioned student attendance and funding, accusing him of slander

Epic Charter Schools sues state senator who questioned student attendance and funding, accusing him of slander
speaks in his Capitol office about Epic Charter Schools’ lobbying efforts last year. MATT BARNARD/Tulsa World file

Epic Charter Schools promoting itself with multimillion-dollar advertising campaign, plus $9,000 per month shopping mall playground sponsorships

Epic Charter Schools promoting itself with multimillion-dollar advertising campaign, plus $9,000 per month shopping mall playground sponsorships

Aug. 30, 2019: Turn on the television or radio, get online or even go to a shopping mall and you’re likely to see ads and promotions for the state’s largest virtual school, Epic Charter Schools.

How much is this back-to-school advertising blitz costing? Nearly $2.5 million.

And sponsoring children’s play areas inside Tulsa’s Woodland Hills Mall and Oklahoma City’s Penn Square Mall through multiyear leases with the malls’ owner adds up to $105,000 in costs per year. Read the story by Staff Writer Andrea Eger.

OSBI investigating new allegations of forgery by Epic Charter Schools' co-founder and CFO, willful neglect by board members

OSBI investigating new allegations of forgery by Epic Charter Schools' co-founder and CFO, willful neglect by board members

Aug. 22, 2019: The Oklahoma State Bureau of Investigation executed another search warrant in its investigation into Epic Charter Schools, and its inquiry now includes new allegations against administrators and governing board members. Read the story by Staff Writer Andrea Eger.

Photo by IAN MAULE/Tulsa World File

How does Epic Charter Schools stack up academically? Check out student proficiency test scores

How does Epic Charter Schools stack up academically? Check out student proficiency test scores

Aug. 20, 2019: Epic Charter Schools trails statewide averages on all 14 state tests for students in grades three to eight and posted proficiency rates on four of those tests on par with or even lower than the perennially low Tulsa and Oklahoma City inner-city districts.

Epic’s new superintendent points to funding levels for his school and the lagging achievement levels of the throngs of students who have made the switch to Oklahoma’s largest online school system. Read the story by Staff Writer Andrea Eger.

Graphic by STEVEN RECKINGER/Tulsa World

Epic Charter Schools' expansion into Texas in limbo amid new revelations about criminal investigation

Epic Charter Schools' expansion into Texas in limbo amid new revelations about criminal investigation

Aug. 1, 2019: Epic Charter Schools’ expansion into Texas has been halted just a few weeks before the start of the new school year.

On June 5, Epic publicly announced it had a deal with iSchool Virtual Academy of Texas, or iSVA, a public charter school, to offer students there in grades 3-12 its blended learning model, which combines online and in-person instruction. iSchool Virtual Academy’s governing board approved the contract with Epic on June 14. Read the story by Staff Writer Andrea Eger.

Tulsa lawmaker uses rarely invoked legal provision to attend closed-door meeting on Epic Charter Schools investigation, educators

Tulsa lawmaker uses rarely invoked legal provision to attend closed-door meeting on Epic Charter Schools investigation, educators

July 27, 2019: When the Oklahoma State Board of Education met behind closed doors this week to discuss investigations into Epic Charter Schools and proposed actions against educators’ state certifications, they had a unique observer present.

State Rep. Sheila Dills, a freshman Tulsa lawmaker, used a rarely invoked legal provision in state law to sit in on the state board’s executive session. Read the story by Staff Writer Andrea Eger.

New records reveal Epic Charter Schools' sponsor was in touch with state auditor for months before scandal

New records reveal Epic Charter Schools' sponsor was in touch with state auditor for months before scandal
July 22, 2019: The Tulsa World has obtained public records that indicate one of Epic Charter Schools’ own charter school authorizers has been in touch with the State Auditor’s Office for months about a possible audit. On Friday, Gov. Kevin Stitt requested an investigative audit of Epic and its related entities by State Auditor Cindy Byrd. Byrd declined to comment on Stitt’s request, but confirmed her office has already been in contact with the Statewide Virtual Charter School Board about questions. Read the story by Staff Writer Andrea Eger.

Governor requests state audit of Epic Charter Schools; school's sponsor already in touch with state auditor

Governor requests state audit of Epic Charter Schools; school's sponsor already in touch with state auditor

July 20, 2019: Gov. Kevin Stitt on Friday requested an investigative audit of Epic Charter Schools and its related entities by State Auditor Cindy Byrd.

The Tulsa World has also obtained public records that indicate one of Epic’s own charter school authorizers has been in touch with the State Auditor’s Office for months about a possible audit.

Byrd declined to comment on Stitt’s request, but confirmed her office has already been in contact with the Statewide Virtual Charter School Board about questions. Read the story by Staff Writer Andrea Eger.

Photo by JIM BECKEL/The Oklahoman

Records show FBI has also been looking into Epic Charter Schools, along with federal education investigators

Records show FBI has also been looking into Epic Charter Schools, along with federal education investigators

July 18, 2019: The Federal Bureau of Investigation and the U.S. Department of Education’s law enforcement arm have also been probing Epic Charter Schools’ student enrollment practices and finances, public records obtained by the Tulsa World show.

Emails with officials at the Oklahoma State Department of Education and Statewide Virtual Charter School Board reveal that federal investigators were at work behind the scenes in the years after the Oklahoma State Bureau of Investigation’s initial inquiry into allegations of fraud at Epic resulted in no charges. Read the story by Staff Writer Andrea Eger.

State superintendent reacts to Epic Charter Schools investigation; online school official claims innocence

State superintendent reacts to Epic Charter Schools investigation; online school official claims innocence

July 17, 2019: State education officials pledged their assistance to investigators who have accused the operators of Oklahoma’s largest online school of embezzlement and racketeering.

In late February, the Tulsa World was the first to report that Epic Charter Schools was under investigation by state and federal authorities.

On Tuesday, the Oklahoma State Bureau of Investigation filed records in Oklahoma County District Court revealing that it had seized evidence in its investigation of whether Epic had wrongly obtained millions of taxpayer dollars by falsely inflating its student enrollment figures. Read the story by Staff Writer Andrea Eger.

Photo by IAN MAULE/Tulsa World

State senator raises new questions about Epic Charter Schools and oversight by Oklahoma State Department of Education

State senator raises new questions about Epic Charter Schools and oversight by Oklahoma State Department of Education

July 12, 2019: A state senator is raising new questions about Epic Charter Schools, the operator of Oklahoma’s largest statewide virtual charter school and centers that blend online and in-person instruction in Tulsa and Oklahoma counties. Read the story by Staff Writer Andrea Eger.

Photo by MATT BARNARD/Tulsa World

Leadership change at Oklahoma's largest virtual charter school likely necessitated by new transparency, conflict of interest law

Leadership change at Oklahoma's largest virtual charter school likely necessitated by new transparency, conflict of interest law
: New restrictions on conflicts of interest at virtual charter schools will necessitate a change at the top of the organizational chart at Epic Charter Schools, according to the Tulsa lawmaker who sponsored legislation to crack down on such practices.

State Senate passes new transparency reporting requirements for virtual charter schools; bill headed to Gov. Stitt next

State Senate passes new transparency reporting requirements for virtual charter schools; bill headed to Gov. Stitt next

April 25, 2019: New restrictions on virtual charter schools sailed through the Oklahoma Senate on Wednesday, in a similar fashion to the state House of Representatives’ vote on the measure last month. Read the story by Staff Writer Andrea Eger.

Tulsa World File photo

State education officials deny clearing Epic Charter Schools in investigation, despite school's new claims

State education officials deny clearing Epic Charter Schools in investigation, despite school's new claims

April 24, 2019: Epic Charter Schools on Tuesday issued a news release and social media posts for their teachers and parents declaring that a newly issued audit by state education officials proved they are in “full federal compliance” with requirements for low-income and special education students. Read the story by Staff Writer Andrea Eger.

Photo by IAN MAULE/Tulsa World

Epic Charter Schools, school reform and funding needs on the minds of Tulsa Republicans at Friday event with State Superintendent Joy Hofmeister

Epic Charter Schools, school reform and funding needs on the minds of Tulsa Republicans at Friday event with State Superintendent Joy Hofmeister
: State Superintendent Joy Hofmeister fielded questions Friday about accountability, implementing new reforms and a statewide virtual charter school that is under investigation by state and federal law enforcement.

New transparency reporting requirements for virtual charter schools advance to state Senate

New transparency reporting requirements for virtual charter schools advance to state Senate
: One of the few surviving measures aimed at adding new restrictions on virtual charter schools sailed through the Oklahoma House of Representatives on Wednesday morning.

Parents, students pack Capitol to tell lawmakers about 'the array of reasons to choose Epic'

Parents, students pack Capitol to tell lawmakers about 'the array of reasons to choose Epic'
March 11, 2019: Thousands of students and their parents descended on the state Capitol Monday to share with lawmakers their myriad reasons for choosing an online education through Epic Charter Schools. Not all of them came to oppose various pieces of legislation that would require the school and its for-profit management company to disclose more about how it spends public tax dollars. Read the story by Staff Writer Andrea Eger.

15 people with ties to Epic Charter donated $180,000 to 78 candidates for state office

15 people with ties to Epic Charter donated $180,000 to 78 candidates for state office

March 3, 2019: The operators of Oklahoma’s rapidly expanding virtual charter school opened their wallets during the 2018 state political campaign season in an effort to combat what they perceive as threats to the school’s continued growth. Read the story by Staff Writer Curtis Killman.

Photo by TOM GILBERT/Tulsa World File

Epic Charter Schools under investigation by state, federal law enforcement agencies

Epic Charter Schools under investigation by state, federal law enforcement agencies
: Epic Charter Schools, the Oklahoma-based online education juggernaut, is now the target of scrutiny by state and federal law enforcement in addition to state lawmakers.

A study in contrasts: Most Tulsa County districts lose students while virtual numbers soar

A study in contrasts: Most Tulsa County districts lose students while virtual numbers soar
Jan. 29, 2019: Most Tulsa County school districts, including Owasso’s, posted enrollment declines — some for the first time in more than a decade — as Epic Charter Schools flourished with online school offerings, newly released student enrollment data from the state reveal. Read the story by Staff Writers Andrea Eger and Kyle Hinchey.

496 Tulsa Public Schools students left for EPIC virtual school since August. TPS to lawmakers: Regulation is needed

496 Tulsa Public Schools students left for EPIC virtual school since August. TPS to lawmakers: Regulation is needed

Jan. 18, 2019: Officials at Tulsa Public Schools decried the loss of nearly 500 students to the state’s largest virtual charter school just since school began in August at a Thursday morning meeting with area lawmakers. Read the story by Staff Writer Andrea Eger.

Photo by ANDREA EGER/Tulsa World

Skyrocketing student enrollment nets Epic Charter Schools nearly $39 million more in midyear adjustments to state funding for public schools

Skyrocketing student enrollment nets Epic Charter Schools nearly $39 million more in midyear adjustments to state funding for public schools
: Epic Charter Schools is seeing its share of state aid soar by $38.7 million in annual, midyear adjustments just made by the Oklahoma State Department of Education.

Epic Charter Schools co-founder audit recommendations make it into legislation

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