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An alarming study links fraud in the Enron scandal to similar practices at charter schools

Former Enron CFO Andrew Fastow, left, who has pleaded guilty to conspiracy and agreed to serve up to 10 years in prison, leaves the federal courthouse with his attorney David Gerger, right, after testifying in the fraud and conspiracy trial of Enron founder Ken Lay and former Enron CEO Jeff Skilling Wednesday, March 8, 2006 in Houston.

The charter-school industry — consisting of schools that are funded partly by tax dollars but run independently — is rife with the same types of fraud and mismanagement that led to the Enron collapse, according to a study published by three education researchers.

The study, “Are Charter Schools the Second Coming of Enron?” examines the related-party transactions, or deals between entities that have preexisting relationships, in charter school relationships and links them to the same types of activities that Enron executives participated in before the company collapsed.

“Unscrupulous individuals and corporations are using their control over charter schools and their affiliates read more >>>

Source:: BusinessInsider.Com