A new report from the State Financial Officers Foundation and Open the Books uncovered nearly 90 alleged fraud schemes involving roughly $225 million across American schools since 2019.
The report alleges that school districts have been embezzling funds, creating fake invoices and then pocketing the money, lying about student enrollment numbers to collect more aid, bid-rigging and receiving kickbacks.
The SFOF and Open the Books reviewed the U.S. Department of Education Office of Inspector General’s semiannual report to Congress between 2019 and 2026 — finding that fraud has taken place in 24 states and Puerto Rico.
“All fraud is harmful, but defrauding education dollars meant to help kids learn and succeed is especially hideous. The findings in this report should alarm every family, teacher, and civic leader, especially since they only scratch the surface of the problem,” SFOF CEO OJ Oleka said in a statement to the Daily Caller News Foundation.
Indiana schools received $44 million more funding from the state than they should have by inflating their enrollment numbers between 2016 and 2018, according to the report. Indiana Virtual School and Indiana Virtual Pathways Academy faced fraud schemes from four individuals within the educational institution including the founders, a director of one school, the superintendents, and an operations manager.