Epic Charter Schools founders Ben Harris and David Chaney, and former chief financial officer Josh Brock, were arrested Thursday on suspicion of racketeering and other charges.
Harris, Chaney and Brock were taken into custody at about 10 a.m. and taken to the Oklahoma County Detention Center for booking, the Oklahoma Bureau of Investigation said in a news release. Bond for the three men was set at $250,000 apiece.
Harris, Chaney and Brock are each facing the following charges:
• Racketeering.
• Embezzling state funds.
• Obtaining money by false pretenses.
• Conspiring to commit a felony.
• Submitting false documents to the state.
• Unlawful proceeds.
The arrests stem from a long-running investigation of Epic that began in 2013, when then-Gov. Mary Fallin asked the OSBI to look into a State Department of Education complaint of dual enrollment at Epic, the OSBI said. Six years later, a state lawmaker who was concerned about misappropriation of state funds that were obligated to Epic Blended Learning Centers — brick-and-mortar schools in Midwest City, Oklahoma City and Tulsa that operated under Epic’s umbrella — requested another investigation.
“This has been a very complex and arduous investigation, with many roadblocks causing delays in getting to the truth,” OSBI Director Ricky Adams said in the news release. “Harris, Chaney and Brock came up with a ‘get rich quick scheme’ that lined their pockets with tax dollars that were to be spent for the benefit of Oklahoma students.”
The investigation involved Epic Charter Schools; Epic Youth Services, a private company that the school’s founders launched to manage the charter school; and the Student Learning Fund, a credit-based system that families could use for educational resources and extracurricular activities.
The OSBI discovered a complex criminal scheme that involved, among other things:
• Co-mingling funds.
• Excessive and unnecessary management fees.
• Using Oklahoma tax dollars in California.
• Concealing profits.
• Submitting false invoices to the state.
• Using employees illegally.
The scheme cost Oklahoma more than $22 million over several years, according to the OSBI.
Adams thanked State Auditor and Inspector Cindy Byrd for her role in the investigation.
“We are grateful for the assistance of State Auditor and Inspector Cindy Byrd and multiple independent audit agencies that helped throughout the investigation,” he said. “I also want to thank District Attorney David Prater for pursuing this case on behalf of Oklahoma students, their families and the taxpayers.”