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Ohio Auditor: ECOT Committed Fraud and May have Committed a Crime

Auditor Dave Yost says he supported the students of ECOT but has exposed fraud.
Auditor Dave Yost says he supported the students of ECOT but has exposed fraud.

The state auditor says the Electronic Classroom of Tomorrow committed fraud by inflating student participation numbers in order to continue collecting millions in taxpayer money. As Statehouse correspondent Andy Chow reports, the auditor is now sending his findings to the U.S. Attorney’s Office for possible criminal investigation.

ECOT and politics

After years of speculation over how many students were actually full time at ECOT -- and if the school might have fabricated  data -- Auditor Dave Yost says he now has proof.

“For the first time we can prove that ECOT submitted information to ODE in order to get paid that it knew to be false when it was submitted.”

The audit from Yost relied heavily on a new software ECOT used to track student participation called ActivTrak.

“ActivTrak is the smoking gun," Yost said.

Computers were on, but was anyone learning?

According to Yost, ECOT handed over a large amount of documentation to the Ohio Department of Education tracking log-in and log-out times, but those records did not include detailed information reflecting what programs the students were on or what websites they visited.

A closer look at the records, Yost said, revealed ECOT did not deduct anything from a student’s time spent on the computer. That means everything -- including learning time, idle time and time spent on non-learning activity -- was all included.

“Submitting false information in order to get money to which one is not entitled is fraud and it may also be a criminal act.”

In one example, the auditor’s office found that a student logged 8,857 hours on ActivTrak, which is impossible; there are only 8,760 hours in a year.

Tens of millions lost

ECOT is currently locked in an Ohio Supreme Court case with the Ohio Department of Education based on past claims that student participation rates were inflated. The state found that ECOT only had about 40 percent of the full-time students it claimed to have. That resulted in the state clawing back about $60 million.

What was once Ohio’s largest online charter school is closed because of the financial troubles connected to the claw backs. The special master of the court in charge of ECOT at the moment does not offer public comments.

Weak state laws

ECOT’s former spokesperson and longtime Capital Square consultant Neil Clark says the school is not getting a fair shake and that the entire issue has become politicized. Clark argues that there’s nothing in state law that defines what should be counted as student participation or how to count idle time.

Yost believes ECOT may have been cooking the books for years but ran unchecked because of the lack of strong transparency laws.

“This was set up under a weak system in my office’s reports and my testimony before the General Assembly for a number of years.”

Yost's relationship with ECOT

But Yost hasn’t always been critical of ECOT. In fact he’s spoken at the school’s commencement ceremony, awarded ECOT the Auditor of State’s Award, and accepted nearly $30,000 in campaign contributions from the school’s top officials.

ECOT’s founder, Bill Lager, has been a major GOP campaign donor over the years.

Sandy Theis, who’s been a vocal ECOT critic, says Yost and other Republican policymakers are to blame for that weak system.

“The Republican Party brought the charter schools to Ohio. The Republican Party eliminated charter school oversight and the Republican Party took the lion share of the millions in campaign contributions that ECOT made.”

Yost counters that he only promises his campaign donors one thing: good government. As for his speech at ECOT’s graduation, Yost says he was there to support the students who worked hard and earned their diploma.

However, Yost’s political rivals are pouncing on the ECOT issue and say the auditor should have triggered a criminal investigation sooner. Democrats claim that valuable evidence might have slipped away in the meantime.

Copyright 2021 WKSU. To see more, visit WKSU.

M.L. Schultze
M.L. Schultze came to WKSU as news director in July 2007 after 25 years at The Repository in Canton, where she was managing editor for nearly a decade. She’s now the digital editor and an award-winning reporter and analyst who has appeared on NPR, Here and Now and the TakeAway, as well as being a regular panelist on Ideas, the WVIZ public television's reporter roundtable.