In a single year at the height of Epic Charter Schools’ enrollment, owners of its management company collected more than $20 million, the former chief financial officer revealed during last week’s preliminary hearing for Epic cofounders David Chaney and Ben Harris.
Chaney, 44, and Harris, 48, are charged with embezzlement, money laundering, computer crimes and fraud related to their operation of the online charter school. The maximum penalty under all the charges exceeds 100 years in prison.
Prosecutors allege Chaney and Harris diverted tens of millions of dollars meant for students’ education using shell companies and false invoices, ultimately splitting about $55 million collected from the school between 2013 and 2021. CFO Josh Brock said he received a 10% cut.
Ying Zhou, assistant professor of law at the Oklahoma City University School of Law, said the Epic case is likely to be considered in the top 10 embezzlement cases in U.S. history in terms of dollar amounts.
Chaney, Harris and Brock are charged under the state’s anti-racketeering law, also known as the Racketeering Influenced and Corrupt Organizations statute, or RICO. Violations of the statute carry a minimum 10-year prison sentence plus potential seizures of property and money.
Zhou said RICO authorizes public and private civil lawsuits, and Epic students and their families could potentially sue under the statute.
Oklahoma is not alone. Charter schools in California, Ohio and Pennsylvania have also made headlines for similar financial scandals, said Diane Ravitch, a historian and founder of the Network for Public Education, an organization that opposes privatization of education.
“The biggest charter school scandals have been in online charter schools because it’s so hard to hold them accountable,” Ravitch said.
Testimony in a preliminary hearing for Epic Charter Schools’ co-founders did not conclude Friday as scheduled, so the judge allotted two more days for the hearing May 7-8.
A crucial witness for the prosecutors, Brock took the stand Friday to testify against Chaney and Harris.
Brock, 42, is cooperating with prosecutors in exchange for a plea deal that would keep him out of prison. He will receive 15 years probation and have to pay restitution, in an amount to be determined, under the agreement.
Witnesses called in the hearing:
• Mark Drummond, OSBI agent
• Doug Scott, former chairman of Epic Charter Schools’ board
• Jeanise Wynn, Epic’s deputy superintendent of finance since 2021
• Chandler Winningham, Epic’s director of the student learning fund
• Renee McWaters, program manager for the Oklahoma State Department of Education’s state aid section
• Salesha Wilken, auditor at the Oklahoma State Auditor & Inspector
• Brenda Holt, director of the forensic audit division of the State Auditor & Inspector
• Josh Brock, chief financial officer for Chaney and Harris’ company, Epic Youth Services.
Oklahoma Watch (OklahomaWatch.org) is a nonprofit, nonpartisan news organization that covers public-policy issues facing the state.
