Wav 031 = 3 . ssp Bad STATE OF FLORIDA : 200 DEPARTMENT OF EDUCATION Noy 29 p AnMNLSIOW OF MN JOHN L. WINN, as HES ian VEy Commissioner of Education, Ss Qo Petitioner, f S pe, o v. DOE Case Number 2006+1239 9 2 SUCCESS ACADEMY CHRISTIAN “oS cd c SCHOOL, INC. ; AOE a Ud Respondent. D (6 7 / . . ADMINISTRATIVE COMPLAINT Petitioner, John L. Winn; as Commissioner of Education, files this Administrative Complaint against Respondent, SUCCESS ACADEMY CHRISTIAN SCHOOL, INC, Pursuant to Section 120.569, Florida Statutes (2001-2006), Section 120.57, Florida Statutes (200 1-2006), Section 220,187, Florida Statutes (2001-2006), Section 229,05371, Florida Statutes (2001), - Section 1002.39, Florida Statutes (2002-2006), and Section 1002.39(7), Florida Statutes (2006), Petitioner intends to revoke Respondent’s participation in the John M. McKay Scholarships for Students with Disabilities Program and the Co: rporate Tax Credit Scholarship Program and/or impose other appropriate sanctions as provided by law. : Petitioner alleges: . JURISDICTION 1. At all times pertinent hereto, Respondent was a private school participating in the ‘John M. McKay Scholarships for Students with Disabilities Pro gram (‘ ‘McKay Scholarship Program”) providing services to eligible students pursuant to Section 229,05371, Florida Statutes (2001) and Section 1002.39, Florida Statutes (2002-2006). 2. At all times pertinent hereto, Respondent was a private school participating in the Corporate Tax Credit Scholarship Program (“CTC Scholarship Program”) providing services to eligible students pursuant to Section 220.187, Florida Statutes (2001-2006). . 3, Pursuant to Section 229.05371, Florida Statutes (2001), and Section 1002.39, Florida Statute: s (2002-2006), Petitioner is statutorily responsible for the implementation. and operation of the McKay Scholarship Program. As part of that responsibility, Petitioner is required to ensure that private schools that participate in the McKay Scholarship Prograrn John L. Winn v. Success Academy Administrative Complaint Page 2.0f 9 continually “comply with all state laws relating to general regulation of private schools.” Petitioner has the authority to deny, suspend, or revoke a private school’s participation in this program, if Petitioner determines that the private school has failed to comply with the McKay Scholarship Program requirements or has otherwise engaged in unlawful activity. See, Section 120.569, Florida Statutes (2001-2006), Section 120.57, Florida Statutes (2001-2006), Section 229.05371, Florida Statutes (2001), Section 1002.39, Florida Statutes (2002-2006), and Section 1002,39(7), Florida Statutes (2006). 4, Pursuant to Section 220.187, Florida Statutes (2001-2006), Petitioner is statutorily responsible for the implementation and operation of the CTC Scholarship Program. As part of that responsibility, Petitioner is required to ensure that private schools that participate in the CTC Scholarship Program continually “comply with all state laws relating to general regulation of private schools.” Petitioner has the authority to deny, suspend, or revoke a private school’s participation in the program, if Petitioner determines that the private school has failed to comply with the CTC Scholarship Program requirements or has otherwise engaged in unlawful activity. See, Section 120.569, Florida Statutes (2001-2006), Section 120.57, Florida Statutes (2001-2006), Section 220,187 Florida Statutes (2001-2006). : MATERIAL ALLEGATIONS 5. On various dates between 2001 and 2005, Respondent fraudulently verified to the Department of Education eligibility of at least 52 different students for McKay Scholarship Program funds. Respondent fraudulently verified the students’ eligibility on a quarterly basis through a password-protected web site. Some of these students never enrolled in and attended school at Respondent at all. Others enrolled and attended for a period of time and then withdrew or otherwise stopped attending; however, Respondent continued to fraudulently verify the students’ attendance and collect McKay Scholarship Program funds on behalf of some students after they ceased to attend. 6. © On or after December 2001, the parent of a student notified Respondent that the student would not be returning to Respondent to attend school. The student was involved in an automobile accident in which the student’s brother was killed and the student sustained injury in December 2001. Respondent continued to report and collect McKay Scholarship Program funds for the student after it was notified that the student would not be returning to school at Respondent. 7. As a result of Respondent's activities noted above, beginning in the 2001-2002 School year and continuing through and including the 2004-2005 school year, Respondent fraudulently obtained approximately $421,477.31 in McKay Scholarship Program fimds for at least-52 different students who were not enrolled and attending school at Respondent during the periods in which the funds were intended to cover. These students actually attended public John L. Winn v. Success Academy Administrative Complaint Page 3 of 9 schools or otherwise ceased to attend school at Respondent during the periods in question. Respondent submitted 10 of these students for McKay Scholarship Program payments for more than one school year. More specifically, during the: : dA 2001-2002 school year, Respondent fraudulently obtained McKay Scholarship Program funds for at least one student in the amount of approximately $3,769.56; Nb. 2002-2003 school year, Respondent fraudulently obtained McKay Scholarship Program funds for about 31 students in the amount of approximately $218,949.25 ; : Ng. 2003-2004 school year, Respondent fraudulently obtained McKay Scholarship Program funds for about 28 students in the amount of approximately $185,448.00; and ; 2004-2005 school year, Respondent fraudulently obtained McKay Scholarship Progtam funds for at least two students in the amount of approximately $13,310.50, ’ For their part in the fraudulent activity telating to the McKay Scholarship Program, Marian W, Johnson, director/administrator of Respondent, and Chavon Monique Peoples, a former director of Respondent, were recently arrested and charged with Grand Theft in the First Degree in violation of Section’812.014, Florida Statutes. Ng. Respondent failed to require a parent to restrictively endorse McKay Scholarship Program warrants as required by law prior to cashing the warrants. Respondent either cashed the warrants without the required endorsement or forged the signature of a parent, To date, Respondent has made no restitution of the McKay Scholarship Program funds to the Department of Education it fraudulently obtained. 10. In addition to the fraudulent activities related to the McKay Scholarship Program outlined herein, Respondent otherwise demonstrated a profound lack of institutional oversight and control and fiscal soundness concerning Respondent's operations and the activities of its directors, administrators and/or employees, Respondent’s failures include the following. a From 1996 through at least 2002, Respondent, a for-profit corporation, repeatedly failed to timely file with and/or remit the appropriate tax to the United States Internal Revenue Service (IRS). In April 2004, the IRS issued the Department of Education a Notice of Levy concerning the amounts owed by Respondent to the IRS. At that time, Respondernt was in arrears to the IRS for various quarters from 1996 through 1999 in the amount of approximately $187,319.83, including interest and penalties due through May 9, 2004, b. In a letter dated July 27, 2004, Respondent indicated to a Departrnent of John L. Winn vy, Success Academy Administrative Complaint Page 4 of 9 Education official that it was also delinquent in filing with and/or remitting taxes to the IRS for the 2000, 2001, and 2002 tax years. , C, Beginning on or before March 2002 and continuing through at least May 2004, Chevon Monique Peoples, a director of Respondent, accessed Respondent’s various accounts and misappropriated thousands of dollars for personal use. This use included: cash withdrawals; checks written payable to the herself, a family member or cash; payment ‘of two different personal auto loans; and purchases for hotels, a time share, TIV O, theater tickets, diet information or products, and clothing and other personal goods or services, ——— > d. Respondent employs four or more persons and is required by law to maintain Workers Compensation insurance. On or about August 31, 2006, Respondent’s carrier cancelled Respondent’s Workers Compensation and Employers’ Liability policy. 11, Since the inception of and its participation in the McKay Scholarship Program and the CTC Scholarship Program, Respondent has been under the continuing obligation to comply with all state laws relating to the general regulation of private schools. Since at least the ; 2001-2002 school year, Respondent has failed to comply with these laws in the following ' maierial ways with regard to at least 52 different students for which McKay Scholarship Program funds were paid in that the required information was not maintained at all or, if maintained, was fraudulent, Respondent has failed to: a. properly report in the annual private school survey student enrollment by grade or special group, as well as student attendance and reports; b. keep and properly report student attendance records and reports; c. comply with school-entry health examination requirements for students; d. comply with student immunization requirements; and | e, maintain permanent and temporary student records, | 12. Each school year since the 2003-2004 school year, Respondent has submitted to the Department of Education a Private School Scholarship Compliance Form, As part of the form, Respondent has affirmatively stated as to each student for whom it claimed was enrolled in the McKay Scholarship Program that the following information was maintained knowing at the time the form was provided to the Department of Education that statement was false or, if the information was maintained, fraudulent as to some or all of at least 52 students. a. That Respondent completed and maintained Student Health Examination documentation (Department of Health Form DH 3040 or other certification) for each student . John L. Winn v. Success Academy Administrative Complaint - ' Page 5 of 9 upon admittance to kindergarten or initial entrance into the school, in accordance with Section 1003,22(1), Florida Statutes and State Board of Education Rule 6A-6.024, Florida Administrative Code. . : b, That Respondent completed and maintained a Florida Certification of Immunization (Department of Health Form DH 680) or valid Exemption from Immunization documents for each student, in accordance with Section 1003.22(4), Florida Statutes and State Department of Health Rule 64D-3.011, Florida Administrative Code. c, That Respondent completed and maintained Immunization Annual Report of Compliance for Kindergarten and Seventh Grades (Department of Health Form DH 684) in accordance with State Health Department Rule 64D-3.01 1(3), Florida Administrative Code. d. That Respondent completed and maintained documentation of appropriate screening of students for scoliosis at the proper age, in accordance with Section 1003 22(A), Florida Statutes, 13. Each school year since the 2004-2005 school year, Respondent has submitted to the Department of Education a Private School Scholarship Compliance Form. As part of the form, Respondent has affirmatively stated as to each student for whom it claimed was enrolled in the McKay Scholarship Program that the following information was maintained knowing at the time the form was provided to the Department of Education that Statement was false or, if the information was maintained, fraudulent as to some or all of at least 52 students, a. That Respondent maintained student records containing permanent information as defined in Section 1002.42(3)(a)2.a,, Florida Statutes, to include: student's full name; authenticated birth date, place of birth, race and sex; last known address of student; names of student’s parents; name and location of last school attended; number of days present and absent; date of enrolled; date withdrawn; courses taken and record of achievement; and. date of graduation or program achievement, 'D. That Respondent maintained student records containing temporary information as defined in Section 1002.42(3)(a)2.b., Florida Statutes, to include at minimum: health information, standardized test scores, honors and activities, personal atiributes, work experience, teacher and counselor comments, and special reports, c That Respondent maintained a register of student enrollment and daily attendance, open for inspection by the designated school representative or the district school superintendent of the district in which the school is located, as required by Section 1003.23 (2), Florida Statutes, John L, Winn v. Success Academy _ Administrative: Complaint Page 6 of 9 Petitioner charges: STATUTORY VIOLATIONS COUNT 1: Respondent is in violation of Section 220.187(5)(a), Florida Statutes (2001 and 2002), Section 220.187(6)(a), Florida Statutes (2003-2005), Section 229,05371(4)(a), Florida Statutes (2001) and Section 1002.39(4)(g), Florida Statutes (2002-2005), in that Respondent is not fiscally sound. COUNT 2: Respondent is in violation of Section 220.187, Florida Statutes (5)(d), Florida Statutes (2001 and 2002), Section 220.187(6)(d), Florida Statutes (2003-2005), Section 229,05371(4)(g), Florida Statutes (2001), and Section 1002.39(4)(g), Florida Statutes (2002- ’ 2005), in that Respondent has failed to comply with laws relating to the general regulation of private schools, COUNT 3: Respondent is in violation of Section 229.05371(5)(£), Florida Statutes (2001), and Section 1002,39(5)(f), Florida Statutes (2002-2005), in that Respondent has failed to Tequire parents to restrictively endorse McKay Scholarship Program warrants to Respondent. COUNT 4: Respondent is in violation of Section 229.808, Florida Statutes (2001), and Section 1002.42(2), Florida Statutes (2002-2005), in that Respondent has failed to properly report in the annual private school survey student enrollment by grade or special group, as well as student attendance records and reports. : : COUNT 5: Respondent is in violation of Section 229.808(7), Florida Statutes (2001), and Section 1002.42(2)(g), Florida Statutes (2002-2005), in that Respondent has submitted data for a nonexistent school or an institution providing no instruction or training, the purpose of which is to defraud the public. COUNT 6: Respondent is in violation of Section 228.092, Florida Statutes (2001), and Section 1002,42(3), Florida Statutes (2002-2005), in that Respondent has failed io maintain permanent and temporary student records, ‘ COUNT 7: Respondent is in violation of Section 232.021, Florida Statutes (2001), Section 1003.23(2), Florida Statutes (2002-2005), and Section 1002,.42(4), Florida Statutes (2002-2005), in that Respondent has failed to keep student attendance records and reports. COUNT 8: Respondent is in violation of Section 232.0315, Florida Statutes (2001), Section 1002.42(5), Florida Statutes (2002-2005), and Section 1003.22(1) and (2), Florida Statutes (2002-2005), in that Respondent has failed to comply with the school-entry health examination requirement for students. John L. Winn y. Success Academy ‘ ; Administrative Complaint Page 7 of 9 COUNT 9: Respondent is in violation of Section 232.032, Florida Statutes (2001), Section 1002.42(6), Florida Statutes (2002-2005), and Section 1003.22(3)-(11), Florida Statutes . (2002-2005), in that Respondent has failed to comply with student immunization requirements. COUNT 10: Respondent is in violation of Section 440,02, Florida Statutes, in that Respondent has failed to maintain Workers Compensation coverage. RULE VIOLATIONS COUNT 11: Respondent in is violation of State Board of Education Rule 6A-6.024, Florida Administrative Code, in that Respondent has failed to complete and maintain Student Health Examination documentation, . COUNT 12: Respondent is in violation of State Health Departinent Rule 64D-3.01 1, Florida Administrative Code, in that Respondent has failed to coniplete and maintain a Florida Certification of Immunization or valid Exemption from Immunization document for each student, , ; COUNT 13: Respondent is in violation of State Health Department Rule 64D~3.011(3), Florida Administrative Code, in that Respondent has failed to complete or maintain Immunization Annual Report of Compliance for Kindergarten and Seventh Grades for each student. COUNT 14: Respondent is in violation of State Board of Education Rule 6A-6,.033 15, Florida Administrative Code, in that Respondent has provided false or fraudulent inforrnation to the Department of Education on its Private Schoo] Scholarship Compliance Form. Jobn L. Winn v. Success Academy Administrative Complaint Page 8 of 9. WHEREFORE, based on the foregoing and pursuant to Section 120.569, Florida Statutes (2001-2006), Section 120.57, Florida Statutes (2001-2006), Section 220.187, Florida Statutes (2001-2006), Section 220.187(10), Florida Statutes (2006), Section 229.05371, Florida Statutes (2001), Section 1002.39, Florida Statutes (2002-2006), and Section 1002.39(7), Florida Statutes (2006), Petitioner hereby revokes Respondent's participation in the McKay Scholarship Program and the CTC Scholarship Program and/or imposes other appropriate sanctions against Respondent provided by law. EXECUTED on this b m day of __( Jef whe , 2006, OFIN L. WINN, as Commissioner of Education State of Florida John L. Winn v. Success Academy Administrative Complaint Page 9 of 9 NOTICE OF RIGHT TO APPEAL Pursuant to Section 120.569, Florida Statutes (2001-2006), Section 120.57, Florida Statutes (2001-2006), Section 220.187(1), Florida Statutes (2006), and Section 1002.39(7), Florida Statutes (2006), Respondent is entitled to dispute this decision through legal administrative procedures, If Respondent wishes to do So, it must make a written request for an administrative hearing in accordance with the provisions of Chapter 28-106, Florida Administrative Code, Pursuant to Section 220.1 87(10), Florida Statutes (2006), and Section 1002.39(7), Florida Statutes (2006), the written request must be received by the Department’s agency clerk within 15 calendar days of the date you receive this letter. The written request must be submitted to: Lynn Abbott, Agency Clerk Department of Education 325 West Gaines Street, Room 1514 Tallahassee, Florida 32399-0400 IfRespondent fails to submit the written request within 15 days of receipt of this letter, it ' will waive the opportunity to contest the decision through administrative proceedings and the Commissioner of Education’s decision will be final, subject only to judicial review pursuant to Section 120.68, Florida Statutes. Pursuant to Section 120,573, Florida Statutes, Respondent is advised that mediation is not available, . CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing was furnished by certified/registered and regular U.S. Mail to: Gary E. Thomas, Registered Agent Success Academy Christian School, Inc. 101 East Union Street, Suite 100 Jacksonville, Florida 32202 this, (9M day of Qatober 2006. Agency Clerk

Docket for Case No: 06-004827