Wednesday, October 28, 2020

Founder of Houston Charter accused of embezzling school funds

-

The founder of a now-closed Houston charter school network failed to properly disclose more than $1 million in payments to his brother’s companies and used taxpayer funds to cover costs associated with a timeshare in Hawaii, federal prosecutors said Wednesday.

Richard S. Rose, who served as superintendent, CEO and chief financial officer of Zoe Learning Academy, was arrested Wednesday after a grand jury returned an 18-count indictment against him. The charter school enrolled several hundred students per year at campuses in Houston’s Third Ward and Duncanville, a city south of Dallas, prior to its abrupt closure in 2017.

Rose is the fourth Houston-area charter leader in the past five years arrested on charges related to illegally taking money from a school.

The Varnett Public School founders Alsie and Marian Cluff were charged in 2015, and sentenced to prison last year for spending more than $4 million in campus funds to support their lavish lifestyle. Houston Gateway Academy Richard Garza awaits sentencing after pleading guilty in October to participating in a $160,000 kickback scheme involving an information technology contractor.

MUST READ

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Former Blue Bell Creameries CEO indicted for fraud linked to 2015 listeria outbreak

The former president and CEO of Blue Bell Creameries L.P., a Texas ice cream company, was indicted Tuesday on wire fraud charges in connection with a scheme...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Texas AG Ken Paxton fires second whistleblower who accused him of bribery

A second whistleblower has been fired from the Texas attorney general’s office after reporting his boss, Texas Attorney General Ken Paxton, to law enforcement for...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks