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.
Byrd found that Epic exceeded a 5% state cap on administrative overhead costs intended to ensure schools direct most resources on students “year after year,” and the state Education Department held the school to account only once— forcing the school to repay a little over $500,000 last year.
Byrd branded the penalty “a slap on the wrist,” and said in actuality, “By our calculations, Epic owes the State of Oklahoma $8.9 million.”
Gov. Kevin Stitt called for the forensic audit of Epic and its related entities in July 2019 after public revelations that the school’s financial dealings were being investigated by state and federal law enforcement.
But Byrd reportedly faced an “unprecedented” lack of cooperation and roadblocks “that greatly inhibited progress and significantly prolonged the timeframe required to complete this audit.”
Byrd said Chaney, the Epic co-founder who also served as school superintendent until 2019, would not submit to interviews, 50 subpoenas were necessary instead of the usual two or three and Epic and its affiliates armed themselves with lawyers to make her task of interviewing personnel and scrutinizing records particularly difficult.
So difficult in fact that 63% of the monies turned over to EYS — nearly $80 million budgeted for students’ learning needs — remains out of her reach and outside public scrutiny.
Nearly $46 million was collected by EYS as compensation for its contract to operate Epic’s two Oklahoma charter schools.
“How did over a quarter of a million dollars in invoices due (Epic) One-on-One go unpaid? Why were student Learning Fund invoices not properly vetted by the school board? How did student Learning Fund dollars end up in the Epic California bank account? These questions can be answered by noting the significant influence EYS has over school affairs,” the report’s executive summary states.
At an afternoon news conference near the state Capitol, Byrd vowed to immediately turn over her work so far to law enforcement officials and to continue to pursue public records for student learning spending at Epic in court.
“I have seen a lot of fraud in my 23 years, and this situation is deeply concerning,” Byrd said at the news conference.
Epic’s spokeswoman said school leaders would be taking 24 hours to produce a point-by-point response to the report and accused Byrd of engaging in “political theatrics” at Thursday’s news conference.
“What we did witness was Auditor Byrd attacking parents’ rights to choose the public school they think is best for them, and disparaging the work we are doing to provide high quality, remote learning opportunities for over 61,000 students and parents,” said Shelly Hickman, an assistant superintendent at Epic.
Coincidentally, Hickman’s own position was cited in the audit report as an example of having not been reported accurately by Epic to the state as an administrative cost.
Key findings and conclusions from the report released Thursday:
• Epic One-on-One and Epic Blended Learning Centers paid EYS 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. The audit found these payments were made without any agreement or contract specifying how students should be counted for calculating payments.
• EYS “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.
• Epic has improperly commingled, or mixed, public dollars allocated for its two, separate charter schools. This includes $6 million in payments and $3.3 million in loans from one school to the other without school board approval.
• Epic Youth Services “erroneously received” an excess of $686,000 in management fees for the past 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.
• In 2016, Epic One-on-One “inaccurately reclassified administrative costs,” thus avoiding a $2.6 million penalty for exceeding Oklahoma’s limit on administrative costs. The penalty would have cut EYS’ management fees by $265,000.
• Between 2015 and 2019, Epic One-on-One failed to report more than $8.9 million in administrative payroll costs. Had they been assessed full penalties by the state, EYS would reportedly have collected at least $837,000 less in management fees.
• Invoices totaling $253,771 for Epic One-on-One employees providing administrative services for Epic-California, and the Panola and Pawhuska public school districts in Oklahoma went unpaid until April and July of this year, after the state auditor subpoenaed proof of payment.
• Epic’s multiyear 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. Nearly $3 million was spent for a three-month “media blitz” advertising campaign to recruit new students in summer 2019, which Byrd cited as an example of Epic’s operators using public dollars with the potential for the founders to personally profit.
Boundaries between Epic’s two separate schools, their nonprofit governing board and for-profit management company EYS “continue to be blurred.”
This, according to the report, despite repeated admonishments by the Oklahoma State Department of Education to keep cost accounting separate and the terms of Epic’s sponsorship contracts prohibiting comingling of funds or requiring separate accounts.
“Many EYS decisions are made without board approval or knowledge and, more often than not, those decisions benefit EYS,” the report states.
An “inherent conflict of interest” exists between ensuring as much funding reaches Epic’s students and the school founders earning a profit because the two founders and a single chief financial officer for both their for-profit business and the school are making all of the financial decisions, Byrd said.
The arrangement of Epic CFO Josh Brock writing checks for the schools and then turning them over and signing them to deposit into the for-profit’s bank account “violates the most basic accounting principles.“
“You can’t have a CFO whose priority is profit on one side and taxpayer protection on the other,” Byrd said Thursday afternoon. “Taxpayers must ask: Are the students really the ones being served?”
EYS brought in nearly $46 million in management fees over the last six years. But despite its contract for services, EYS was found to have zero employees from July 2014 until October 2018 and only three the last couple of years — a fact one of the co-owners reportedly did not want out.
“What the Legislature will do if we make our employee count public record — they will bludgeon us about our fees,” Ben Harris, is quoted as having told the state auditor’s office.
Byrd’s report asks “With EYS receiving $45.9 million in management fees, why would the district require 75 administrative employees?” and then answered the question. “(Epic) One-on-One administrative employees are being used to provide services for other school districts, both in and out-of-state.”
Learning Fund records still sought
EYS has refused to turn over records for Epic’s Learning Fund, which has taken in $79.3 million in state appropriated dollars. The fund covers students’ educational needs including curriculum, laptops, home internet access and extra-curricular activities.
“Transparency for public accountability purposes is nonexistent. The $79.3 million has never been audited by an outside agency and continues to remain hidden behind a wall of privacy,” the auditor wrote.
Byrd has gone to district court in the public records fight and an Oklahoma County judge has scheduled a trial in the matter in December.
Who did the state auditor find is doing the work of making and approving purchases from the EYS-controlled bank account for student Learning Funds?
Public school employees, being paid with public dollars, using public school assets, such as computers and office space.
“Student Learning Fund purchases are made and approved by Learning Fund Managers and a Learning Fund Director, all are (Epic) One-on-One state employees,” according to the report.
The discovery that $203,000 in Epic’s Learning Fund dollars from Oklahoma was paid to Epic-California came from California public records, which “did not reflect that the $203,000 had been returned to the student Learning Fund,” according to the audit report.
The auditor noted that Chaney had assured the local school board in late 2015 when Epic was awarded a charter school deal in California that Oklahoma dollars would not be “funneled” there.
Lax measures
The report found oversight and accountability measures to be lacking on the part of Epic’s hand-picked governing board members, by Rose State College — which has taken $3.7 million in taxpayer dollars as one of Epic’s sponsors or authorizers — and by the state Department of Education.
State education officials “accepted at face value’ inaccurate data from Epic without having processes to verify reported information and even dropped a serious issue flagged by staff in late 2016.
“Although there are numerous layers of laws and oversight agencies, Epic Charter Schools has not been held accountable for their spending of public funds,” the audit report states. “Actual accountability still seems to fall through the cracks, and in the case of Epic Charter Schools, leaves EYS, the CMO (charter management organization), effectively in charge.”
The audit pinpointed CFO Josh Brock as a common denominator in numerous accounting issues identified. Brock also serves as both chief financial officer and encumbrance clerk for Epic’s two Oklahoma schools and CFO for EYS and a subsidiary used for Epic’s expansion efforts in California and rural Oklahoma.
As Byrd put it, Brock “plays a critical role on both sides of the fence,” and was the same individual often doing the invoicing and the payments — or in many cited instances, not making payments reportedly owed between the various entities.
“As a result, the system of checks and balances and internal controls that typically exist were inadequate,” her report states.
Educational institution or money-making venture?
Byrd’s report states accounting for spending in charter schools has become such a nationwide problem that the Internal Revenue Service created a specific guide for auditing them.
“The primary concern regarding charter schools,” she quoted the IRS guide as stating “is ‘determining if they operate for exclusively charitable and/or educational purposes and don’t operate for the benefit of private management companies and service providers.’”
Byrd thinks Oklahoma should consider prohibiting new charter contracts or renewals of existing contracts for schools operated by for-profit organizations — or subcontracts, like the one Epic Youth Services has held for the two charter schools in Oklahoma.
She also suggested that Oklahoma could not only improve oversight, but also cut down on administrative costs and ensure more public dollars go to student instruction.
“Oklahoma should strongly consider consolidating charter school authorization sponsorship and oversight under one agency. A fraction of the funding allowed charter sponsors, considerably less than the amount currently retained by the individual sponsors, would be more than ample to fund a comprehensive oversight organization. This organizational structure could provide ‘real oversight,’ while reducing overall costs and increasing funds available for use in the classroom.”
Byrd concluded her report by saying Oklahoma students and taxpayers cannot afford for the serious issues raised by the audit about the state’s established framework for charter school accountability to go unaddressed.
“Regardless of what entity provides charter school oversight, it is time for change in the supervision of our Oklahoma public charter schools,” the report states. “During this time of physical constraints and unforeseen challenges, it is imperative that the financial accountability, management, and oversight of charter schools is maintained at the highest standards, protecting both the students and the public’s interest.”
The state auditor’s recommendations
Charter school authorizers, called sponsors, should retain adequate authority through their contracts to “properly monitor operations and funding and provide rigorous oversight.”
Charter school sponsors should have final approval of agreements between charter schools and charter management organizations and “have substantial input in the financial aspects of the agreements.”
Charter management organizations should not have control over school district financial decisions.
Oversight by charter school sponsors and the state Department of Education must extend beyond “checking the box” to be effective. The State Department of Education must allocate proper resources to “fully accomplish their oversight responsibilities.” And an “internal risk assessment” should be conducted to ensure that SDE oversight is “focused on the areas where they will provide the most significant impact.”
All public funds must be maintained in public bank accounts and all associated transactions must remain public. “Transparency is vital. As a Supreme Court justice once stated, ‘Sunlight is ... the best of disinfectants.’”
All charter school boards should be truly independent in their administration and management of their schools. The manner in which charter school board members are appointed should be evaluated and a process for establishing independent school boards should be implemented.
Video: Auditor releases part 1 of report into Epic
Epic Charter Schools: A long-term Tulsa World investigation
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.
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.
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.
Hamrick and Shepherd cast the “no” votes in both instances.
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.
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.
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.
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>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.”
“Part one of the state audit of EPIC Charter Schools confirmed an alarming breakdown with the current system of public school oversight,” Dills said in a written statement released statewide.
“We must reorganize the system to ensure all schools are held accountable, not just virtual charter schools. Taxpayers deserve protection and efficient government, and it is imperative this never happens again in any school.”
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.”
The same governing board members serve both Epic One-on-One and Epic Blended Learning Centers, Epic’s two separate schools with different models and separate charter school sponsors.
At an Oct. 21 meeting, attorneys for Epic reviewed their point-by-point response document rebutting most of the forensic audit findings State Auditor and Inspector Cindy Byrd released on Oct. 1.
“I’ve sat here for 10 years, and I’ve never heard of anything like this. And now all of a sudden this — and that doesn’t quite measure up to me,” said board member Mike Cantrell.
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.
According to posted board agendas for meetings of the Epic One-on-One and Epic Blended Learning Centers boards, Liberty Mitchell has resigned and the board will consider accepting applications for her replacement.
The Oklahoma State Auditor and Inspector’s Oct. 1 report found oversight to be lacking on the part of Epic’s “handpicked” governing board members, selected by school co-founders David Chaney and Ben Harris, “whose for-profit school management company contract and performance should be overseen by an independent board,” the report states.
In all, $125.2 million of the $458 million allocated to Epic Charter Schools for educating students the past six years was found to have ended up in the coffers of Epic Youth Services, Chaney and Harris’ charter school management company, which reportedly has made them millionaires.
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.
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.
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.
Assistant Attorney General Marie Schuble recommended that the board pursue the matter based on information that the operators of the state’s largest virtual school may have failed to meet contract standards for fiscal management and violated various laws, as well as for “good cause.”
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.”
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.
State Reps. Rhonda Baker, R-Yukon, and Mark McBride, R-Moore, said they would hold the joint hearing Oct. 21 to go over the audit and quiz State Auditor and Inspector Cindy Byrd about the report’s findings.
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.
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.
'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.
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.
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

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

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

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

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

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.
In an email to students’ parents sent late last week, Epic called Sen. Ron Sharp, R-Shawnee “a dishonest and relentless critic of our school” and denied being obstructive or engaging in negative campaigning against him.
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.
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.
Sen. Ron Sharp, R-Shawnee had raised questions in the summer of 2019 about the school’s student attendance and enrollment practices, and Epic sued him in December, seeking at least $75,000.
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.
The Statewide Virtual Charter School Board has tracked Aug. 1 student enrollment since 2015 and found a year-over-year increase of nearly 77% between this year and the same time last year.
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.”
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.
This exceeds the previous No. 1, Oklahoma City Public Schools, which predicts 34,867 students this fall. Tulsa Public Schools projects 34,405 students, not including sites for alternative schools and partnership programs. The virtual school is adding 1,000 new students a day in an enrollment spike that began this month, said Shelly Hickman, assistant superintendent of communications.
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.
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.
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
'Our kids have become a piggy bank': Epic Charter Schools shields $50M in taxpayer funds from public scrutiny

Feb. 23, 2020: 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.
School officials now acknowledge payments for previous years totaled $50.6 million for something Epic calls the “Learning Fund.” And based on a recent uptick in student enrollment, Epic’s allocation for 2019-2020 alone could be $28 million. Read the story from Staff Writer Andrea Eger.
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.Epic Charter Schools sues state senator who questioned student attendance and funding, accusing him of slander

Sen. Ron Sharp 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

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

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.
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.
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

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

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

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.
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

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

May 7, 2019: 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. Read the story by Staff Writer Andrea Eger.
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.
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.
Epic Charter Schools, school reform and funding needs on the minds of Tulsa Republicans at Friday event with State Superintendent Joy Hofmeister

March 16, 2019: 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. Read the story by Staff Writer Andrea Eger.
New transparency reporting requirements for virtual charter schools advance to state Senate

March 14, 2019: 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. Read the story by Staff Writer Andrea Eger.
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

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

Feb. 27, 2019: 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. Read the story by Staff Writer Andrea Eger.
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

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

Jan. 8, 2019: 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. Read the story by Staff Writer Andrea Eger.