Education, Inc.

George Joseph:

Over the summer, FBI agents stormed nineteen charter schools as part of an ongoing investigation into Concept Charter Schools. They raided the buildings seeking information about companies the prominent Midwestern charter operator had contracted with under the federal E-Rate program.

The federal investigation points to possible corruption at the Gulen charter network, with which Concept is affiliated and which takes its name from the Turkish cleric Fetullah Gulen. And a Jacobin investigation found that malfeasance in the Gulen network, the second largest in the country, is more widespread than previously thought. Federal contracting documents suggest that the conflict-of-interest transactions occurring at Concept are a routine practice at other Gulen-affiliated charter school operators.

The Jacobin probe into Gulen-affiliated operators in Texas, Arizona, Utah, Nevada, and California found that roughly $4 million in E-Rate contract disbursements and $1.7 million in Department of Education Race to the Top grantee awards were given to what appear to be “related parties.” Awarding contracts to firms headed by related parties would seem to violate the FCC’s requirement that the school’s bidding process be “competitive” as well as “open and fair.”

Related: Philadelphia Schools, Another Year, Another Crisis.