A federal judge in Missouri blistered Imagine Schools, saying the lease it forced on a local school it managed constituted “self-dealing.” The judge ordered Imagine to pay the school more than $1 million.
School board members at the now-closed Missouri school sued Imagine, insisting that it acted in its own best interest, not the best interest of the school.
The facts of the case mirror arrangements in Ohio and other states where Imagine schools pay exorbitant rent to an Imagine subsidiary, SchoolHouse Finance. The high lease payments leave little money for classroom instruction and help explain the poor academic records of Imagine schools in both states.
(Read more at ProgressOhio)