Officials at Christian academy accused of school voucher fraud
By Associated Press
Published June 30, 2004
A Polk County Christian school accepted state voucher money for disabled children who didn't attend it, leading to seven arrests Tuesday, authorities said.
Faith Christian Academy in Bartow also defrauded a voucher program in which corporations receive tax credits for providing private school scholarships to poor children, according to an affidavit filed by investigators. And it allegedly took money from a federal free lunch program for more students than attended the school.
The school's officials defrauded the state and others out of more than $200,000 and used some of it to purchase cars and real estate, the affidavit said.
At least 23 students who received McKay Scholarships - vouchers for disabled students - withdrew from the school, but the school continued accepting the state money. In addition, the school took corporate voucher money for students no longer at the school, authorities said.
The school opened in 1999, three years after the McKay Scholarship program began and the same year Florida's voucher program was created as an alternative for children attending chronically failing public schools. A third program for low-income students that provides corporate tax credits was created in 2001.
The school is one of several voucher-receiving schools that have been under investigation by Chief Financial Officer Tom Gallagher. His office worked with the Polk County Sheriff's Office, the Polk County State Attorney's Office and Bartow police to make the arrests.
Six were arrested in Polk County and one in Hillsborough County.
School director Betty J. Mitchell, was arrested along with five of her relatives and her assistant. All were charged with structuring bank transactions to evade reporting requirements.
Mitchell, 37, and her sister, Jeannette Nealy, 36, were also charged with racketeering, conspiring to racketeer, money laundering and organized fraud. Mitchell was also charged with communications fraud and two counts each of grand theft over $20,000 and grand theft over $300. Nealy was also charged with three counts of grand theft over $300, seven counts of forgery and petit theft.
Their mother, Jocie Jives, 60, was charged with racketeering, conspiracy to racketeer, money laundering and grand theft over $300.
Mitchell's assistant, Levy Gail Davis, was also charged with racketeering, conspiracy to racketeer and money laundering. Mitchell's brother, Willie Jives, 35; his wife, Margaret Burns, 31; and Nealy's son, Demario Jives, 19, are also charged in the case.
A phone number listed for the school was disconnected, none of those charged could be reached and a lawyer representing the school didn't return a call.
"These arrests reinforce the need to have meaningful accountability in all Florida programs, including our school choice programs," Gallagher said in a written statement. "I'm going to do everything I can to ensure these programs are successful and tax dollars are appropriately spent."
The school hasn't received any McKay scholarship money since February, when the Department of Financial Services began its investigation, said Frances Marine, a spokeswoman for the Department of Education.
An Education Department investigation found that the school was receiving scholarship money for students who were enrolled in Polk County public schools, not the Faith Christian Academy.
A bill that would have provided more accountability in the state's voucher program died during the legislative session that ended April 30. At the time, Senate President Jim King said the programs were "a disaster waiting to happen" without greater state oversight.
"This case should serve as a wakeup call to Tallahassee that better financial controls need to be in place," said Polk County State Attorney Jerry Hill.
