L.A. Charter Operators Convicted of Misusing Taxpayer Funds

A couple that founded a Los Angeles-area charter school were found guilty Friday of misappropriating more than $200,000 in state funds in a case that could have wider implications for the frequently nonprofit-run independent schools, reports the Los Angeles Times.

Yevgeny “Eugene” Selivanov and his wife, Tatyana Berkovich, left Ivy Academia in 2010 after they were charged with misappropriation of public funds, embezzlement, and filing false tax returns in connection with spending at the three-campus school. Started in 2004, Ivy focused on teaching entrepreneurial skills and has boasted high test scores and long waiting lists.

Prosecutors cited tens of thousands of dollars spent on meals, entertainment, and gifts that were reported as business expenditures or gestures of appreciation for teachers.

The defendants argued that charters should be treated like nonprofit organizations, which get wide latitude in spending to pursue their missions. Charter advocates said the prosecution could undermine the flexibility of the independently run, state-funded schools, which currently enroll more than 410,000 students in California.