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Monday, August 18, 2014

Nearly $1 million from charters went to firms named in FBI probe | Early & Often

Nearly $1 million from charters went to firms named in FBI probe | Early & Often:



Concept Schools headquarters in Des Plaines.

Nearly $1 million from charters went to firms named in FBI probe



CONtractors facing scrutiny in an ongoing federal investigation of Concept Schools have been paid nearly $1 million over the past three years for work at three Chicago Public Schools-funded campuses run by the Des Plaines-based charter operator, records show.
In June, the FBI raided 19 Concept Schools locations in Illinois, Indiana and Ohio, including the group’s Des Plaines headquarters. Search warrants showed they were seeking records concerning Concept’s use of the federal “E-rate” program and companies hired under that program, which helps pay for high-tech upgrades.
The agents also were looking for records regarding top Concept officials, the Chicago Sun-Times reported last month.
No one has been charged. The FBI has said only that the investigation is a “white-collar criminal matter.”
The CPS-funded work done by the contractors named in the FBI search warrants has ranged from selling Concept computers and uniform polo shirts to organizing professional-development seminars.
Concept operates three schools in Chicago. All rely almost entirely on public funding.
Concept’s Chicago Math and Science Academy in Rogers Park — one of the schools the FBI raided June 4 — was approved by CPS officials 10 years ago.
The charter operator’s Horizon Science Academy McKinley Park at 2845 W. Pershing Rd. and Horizon Science Academy Belmont at 5035 W. North Ave. have been open for a year after being initially rejected by CPS because of questions regarding student performance at CMSA.
Concept appealed to the Illinois State Charter School Commission, which overrode CPS, ordering them to finance the two schools with tax dollars.
The three Chicago Concept schools have paid more than $283,000 since the start of 2011 to Advanced Solutions in Education of Schaumburg, records show. The company and its founder and former chief executive, Ozgur Balsoy, were named in FBI search warrants served at
Concept’s headquarters and at its schools in Rogers Park and Peoria.
ASE was a consultant for Concept on its applications for federal E-rate funding. The company also was hired to do other work for Concept, including organizing seminars for school administrators and teachers.
Balsoy previously was an administrator at a Concept school in Columbus, Ohio. He formed ASE in Ohio in 2009, expanding to Illinois Nearly $1 million from charters went to firms named in FBI probe | Early & Often: