Eagles Peak Charter School

[Maura Larkins' note: $7.3 million was
misappropriated from taxpayers, but
San Diego District Attorney Bonnie
Dumanis filed no charges.  Dumanis
routinely protects school boards and
administrators who commit crimes, yet
she charges little guys with felonies
for using school hoses to water their
palm trees (see
MiraCosta College).


NORTH COUNTY TIMES
BY STACY BRANDT
December 7, 2007

VISTA ---- A county report released this
week says poor judgment and lax oversight
led to several problems at North County's
largest charter school, where allegations of
money mismanagement, nepotism and
conflicts of interest erupted into an ugly
power struggle last year.

No criminal charges were filed against
anyone at either school.

The report was released Tuesday by the
San Diego Office of Education, which hired
an auditing firm to look into 12 allegations
against former administrators at the school
that had been lodged by its board of
directors.

...the report offers recommendations for
how to get the school back on track,
including repaying $7.3 million in state
funding that may have been based on
falsely reported attendance figures.

The report also suggests that Eagles Peak
develop policies for dealing with nepotism
and conflict of interest, and that it
streamline how the school reports
attendance...

[Blogger's note: Policies mean nothing
if they're not implemented. In the
Danielle Cozaihr case, Chula Vista
Elementary School District's board
completely ignored its own policy
regarding helping teachers meet
goals. Of course, that's because the
teacher was already meeting goals,
and their claims to the contrary were
for the sole purpose of getting rid of a
teacher for taking maternity leave. The
board also ignored the penal code, the
Labor Code, and the contract in the
Maura Larkins case. Most school
boards seem to act only to maintain the
status quo by protecting the people
who have power.]

The report doesn't place all of the blame on
former administrators. The school's board
of directors contributed to the problems by
not keeping an eye on expenses, the audit
states. Before last year, the school board
"provided minimal monitoring, at best,"
according to the report.


Comments from North County Times
readers:

" Same names, same behavior, same
outcome... They just move from one charter
to another but they had their training at
GPA [Guajome Park Academy]. These folks
should be held accountable ... What about
the child's life that they affected, are the
children able to bounce back? "


" Hum no criminal charges? Why not? The
answer is simple perhaps the San Diego
County Office of Education and the San
Diego DA's office should be investigated for
not doing their JOB!!! Where there are
hundreds and thousands of dollars
missing/unaccounted for/discrepancy and
so forth the DA looks the other way. Then
on the Palgate scandal the DA spent an
enormous amount of money investigating $
350.00 or so. What is wrong with this
picture? By the way Stacy Eagles Peak is
not the biggest charter school in the North
County. The biggest and the meanest is
Guajome Park ... "

" As magistrate Judge Barbara Major said, "
If there are no sanctions, than where is the
deterrence." The same can be said with
these charter schools, "if there are no
criminal charges, than where is the
deterrence."
Charter Schools
SD Education Rpt Blog
Site Map
Guajome Park Academy

Guajome Sues Student

Guajome Park lawsuits

Beverly Kanawi v. Bechtel

Shinoff bully booklet

Peters v. Guajome Park


EAGLES PEAK
Charter
Schools
Mike Hazelton sues his
victims at Cortez Hill Academy

Voice of San Diego article March 13, 2009
Complaint pdf
The School Guru Who Promised
Rescue and Brought Ruin

Voice of San Diego
By EMILY ALPERT
Sept. 24, 2008

Juan Pablo Ladron de Guevara had floundered in a
big, conventional school, but not at Cortez Hill
Academy. He relished the small classes and loved
chatting with his English teacher, his "all-time most
favorite teacher in the whole world."

"I actually felt like coming to school," de Guevara said.

Mike Hazelton led three different charter schools in four
years, each of which suffered deeper deficits or
suspicions of mismanagement under his leadership.
Photo from TIP Academy yearbook
But Cortez Hill enrollment didn't keep pace with soaring
downtown rents in the summer of 2006, making money
so scarce at the tiny charter school that it relied on
parents to help maintain the dim, aging building on A
Street. Balancing the books frustrated the principal, a
former counselor who could soothe troubled teens but
was less familiar with finances.

Michael R. Hazelton sold himself as an expert who
could help. He was soothing. Gray-haired. Nice. A
Harvard University seminar topped his resume, loaded
with impressive work at a national company and a
school that had once aided Cortez Hill. The school
hired him as its executive director to reverse its
fortunes.

Instead its deficit ballooned from $16,559 to $188,187
in the single year that it employed Hazelton. When an
audit revealed that he gave himself an $18,350 raise
without the blessing of the Cortez Hill board, boosting
the six-figure salary that had already dwarfed what his
predecessor had earned, Hazelton was already gone.
Related Links


School District Report on TIP Academy (pdf)

TIP Response to School District (pdf)

Cortez Hill Academy Audit (pdf)

Las Banderas Academy Audit (pdf)

Two of its 13 teachers lost their jobs as Cortez Hill
struggled to pay its bills. And something else was
missing, something de Guevara couldn't quite
describe. Rumors about Hazelton spread and graffiti
proliferated in the bathrooms. De Guevara started
skipping class to hang out with friends in the library.

"Everyone found out what Mike did," de Guevara said,
adding that "the school changed so much. I hated it."

Cortez Hill isn't the only charter school where Mike
Hazelton promised rescue and brought ruin. In four
years, he has led three Southern California schools
and each has been crippled or closed by the time he
walked away, suffering deficits or battling accusations
that Hazelton improperly enriched himself or
corporations he founded.

He was first accused of double-dipping in San
Bernardino County, where deficits destroyed a bilingual
school that paid him nearly $128,000 in salary and an
estimated $290,000 to the corporation he founded for
accounting and administrative support. The school's
abrupt closure left teenagers without class credits and
some struggling to graduate.

Two and a half years later, an audit concluded that his
Cortez Hill raise was unapproved and the school
hemorrhaged money under his watch, decimating its
budget and its morale. And his most recent school,
Theory Into Practice Academy, was shut down in
August after a Encinitas Union School District
investigation concluded that the school's board and
administration, which included Hazelton and his wife
Deborah Hazelton, violated conflict of interest laws and
mismanaged its finances.

Deborah Hazelton, wife of Mike Hazelton, cofounded
TIP Academy and served as its principal. Photo from
TIP Academy yearbook
Hazelton is still in business, now planning a new private
school with his wife in San Marcos. He has not repaid
the thousands of dollars that the Encinitas school
district and Cortez Hill say he was improperly paid.
Hazelton has explanations for the mishaps: The San
Bernardino school had trouble partnering with a
community group. Cortez Hill was billed twice by the
school district. And rivalry spurred the Encinitas school
district to attack his school.

He has defenders in San Bernardino and Encinitas.
Some contend that the closure of TIP Academy was a
politically motivated attack on a successful charter that
had drawn students away from the Encinitas schools;
others voiced similar complaints about the school
district that oversaw the San Bernardino school and
place its problems with the local group that partnered
with Hazelton.

Even his harshest critics call him nice, and struggle to
reconcile his kindness with his record. When
classrooms needed books he jumped to supply them.
He knew each of their children by name. It seemed
impossible that friendly Mike Hazelton, the man who ran
school traffic duty in a goofy straw hat, meant to profit
off their school. Katherine Flesh, who sent her children
to the Encinitas school, was left wondering whether
Hazelton was conniving or merely incompetent.

"Is he Mr. Magoo who has left a trail of destruction? Or
is it a cover he's perfected?" she asked. Either way,
Flesh said, "he found a gravy train."

His saga underscores the vulnerabilities of charter
schools, a relatively new phenomenon in California
education. Publicly funded but independently run,
charters are meant to be incubators for creativity and
innovation, unfettered by the rules that weigh
traditional schools. They give all students a free
alternative to the public schools.

But independence also has a price. Charters often
shoulder the business tasks that school districts
ordinarily handle for schools, such as running a payroll
or financing a building. And those tasks can prove
daunting to educators who are more familiar with
classrooms than budgets.

Hazelton offered to handle those jobs, convincing his
employers with his resume and the sterling reputation
of the first charter where he worked. Exaggerated titles
and job descriptions went undetected. Few employers
contacted all the schools he left, or the references who
said they hardly knew Hazelton or hadn't spoken to him
in years. School leaders who hired Hazelton trusted
him.

"I was hoping he was the professional who could turn it
around for us," said Will Stillwell, board secretary at
Cortez Hill Academy. "I wanted to let him lead."

Hazelton studied at the University of California, Irvine
and San Diego State, and started teaching in 1975 in
Oceanside public schools, where he ascended to
coordinator of student services, according to his
resume. He also owned private preschools in Encinitas
with his wife, a recognized teacher of gifted students.

Hazelton joined the charter world in 1998, taking a job
at Guajome Park Academy in Vista, and eventually
became assistant superintendent of the school. In
2001 he began starting charter schools for Guajome,
spreading a dropout recovery program from Vista to
the East Coast. His boss praised his success getting
new schools approved, and Hazelton was amazed by
the freedom and possibilities that charter schools
offered, such as replicating a successful program
nationwide.

"I'm so used to schools being in boundaries, and I
didn't realize you could go all over," Hazelton said in an
interview. "It was a paradigm shift for me."

'He Ripped Us Off:' Cortez Hill Academy
Jacqueline Hicks leafed through the mail left behind at
Cortez Hill Academy after Mike Hazelton quit as
executive director two weeks before school started in
August 2007 to take a job at his wife's school in
Encinitas. Each envelope held another nasty surprise.
The rent hadn't been paid for two months, Hicks told
her board in a letter, and checks were bouncing
because Hazelton had neglected to make a wire
transfer on time.

And then the school bookkeeper told Hicks that
Hazelton had hiked his $100,000 salary to $118,350 --
a raise that Hicks and the board said they'd never
approved. Auditors from El Cajon-based Wilkinson
Hadley & Co. later discovered that the school's deficits
had jumped from $16,559 to $188,187 during the
single year that Hazelton was director, and Hazelton
was signing checks alone despite a school policy that
required him to get a second signature.

"He ripped us off," Hicks said. She added, "And I had
no idea until he was gone."

Hicks changed the locks on Hazelton's office and
alerted the board. She demanded that he return the
funds. He hired an attorney. Hicks told the police about
the raise and the audit, but nothing came of it. Suing
him seemed too expensive to contemplate.

"I did what I could do with it," she said, "and then I
moved on."

Hazelton chalked up the deficit to a change in the way
San Diego Unified billed charter schools, but the school
district said its change didn't increase costs. He
insisted that his salary was approved by the board as
part of a smaller school-wide raise.

Cortez Hill "has its challenges because the people
there really didn't have a business sense," Hazelton
later said. "... I just inherited a tough timing situation."

Hicks said school leaders banked on the
recommendation of Stephen Halfaker, the former Chief
Executive Officer of Guajome Park Academy, when
they hired Hazelton. But had the leaders at Cortez Hill
scrutinized his resume more carefully, Hazelton might
not have seemed as impressive. Three of his claims
aren't supported by employers listed on his resume,
and his other references include past acquaintances
who were surprised to learn that they were references
at all.

Hazelton claimed to have developed four new charters
between 2004 and 2006 for Adams and Associates,
Inc., a Nevada-based company that operates career
training programs. Yet its president Roy Adams, one of
Hazelton's references, said Hazelton didn't develop
new charters while working for the company. He only
consulted them on curriculum for their alternative high
school programs.

Hazelton also touted himself as co-founder and board
president of the award-winning School for Integrated
Academics and Technologies headquartered in Vista
between 2001 and 2002. But its spokeswoman said
Hazelton wasn't its founder and never served on the
board, though he did help spread a dropout recovery
program that eventually evolved into the Vista school.

And had Hicks, the Cortez Hill principal, known to call
Dennis Byas, who oversaw the Colton Joint School
School District outside San Bernardino, she would
have gotten a counterpoint to that resume: The
financial meltdown of Las Banderas Academy, which
Hazelton and his corporation oversaw one year before
he joined Cortez Hill.

"Maybe we should have looked farther," Hicks said.
"But I didn't know how to find out."

'It Just Didn't Seem Right:' Las Banderas Academy
Las Banderas Academy had long worried
Superintendent Byas. Its test scores were mediocre
and its board members kept changing. Byas wasn't
convinced that it enrolled as many students as it
claimed. And the school was run by an alphabet soup
of organizations that still confounded Byas years after
the school was shuttered.

Chief among those organizations was New Education
for Communities, Inc., a corporation that Hazelton
founded. It was entitled to 15 percent of Las Banderas'
revenues for accounting and administrative support
while Hazelton also served as the school's full-time
chief education officer. Suspicions abounded that
Hazelton was double-dipping by earning a Las
Banderas salary and gaining money from the group as
well.

Theory Into Practice Academy shared a building with
this Encinitas school. Photo: Sam Hodgson
Those suspicions were never proven or disproven
because the corporation left few records and was later
suspended by the state. Deficits forced the school to
close. But the corporate confusion and allegations
foreshadowed the conflicts that later unraveled Theory
Into Practice Academy in Encinitas.

Las Banderas began as the brainchild of Emma
Lechuga, who had long been intrigued by the idea of a
charter school to serve bilingual students. Her Colton
nonprofit Somos Hermanas Unidas had taught English
to immigrants and helped teen dropouts earn their
degrees for decades, but opening a school took money
that Lechuga didn't have, and Byas was skeptical of
her first ideas.

She had shelved her plans until she met Mike Hazelton,
who was working for the highly regarded Guajome Park
Academy and spreading a computerized dropout
recovery program much like hers. Together they
imagined a new school: A bilingual version of the elite
International Baccalaureate program that was
flourishing at Guajome, but tailored for disadvantaged
youth in Colton.

Billing Guajome as the "parent corporation" for Las
Banderas helped convince the Colton school board to
approve the school. It was a respected school that
legitimized their plans and furnished Las Banderas with
seed money. Without Guajome and Hazelton, "the
school would not have been a viable charter," said
former Colton school board member Tobin Brinker.

"Emma is a real nice person," Brinker said, "but Mike
and the people from Guajome Park had the
experience."

But the involvement of Hazelton's corporation started to
trouble Lechuga and her staff as money flowed to the
outside group. Hazelton called New Education for
Communities a nonprofit subsidiary of Guajome Park
Academy, but its exact relationship with the school is
cloudy. Tax returns filed by Guajome while Las
Banderas was operating do not list either the
corporation or Las Banderas as related groups.

"We spent hours trying to see how New Education fit
with everything else," said English teacher and Las
Banderas board member JoAnne Hux. "Was he
double-dipping? It just didn't seem right."

What was clear was that school funds were going to
the corporation that Hazelton headed. New Education
for Communities was entitled to 15 percent of Las
Banderas revenues in its first year, according to school
documents. Based on the school's reported revenues
of $1.97 million in 2004, the corporation's 15 percent
share would've amounted to $290,000 that year.

Teachers felt it was a sizable fee for a school with
fewer than 300 students that already employed an
administrator like Hazelton. Founding documents for
Las Banderas said Hazelton's role was "analogous to
the role of Principal." Lechuga and office manager
Laurie Gonzalez said Hazelton spent more than half of
his time elsewhere, fostering another charter school
near Los Angeles and unsuccessfully pushing a third in
Murrieta. Lechuga was paid $73,844 to juggle two
school sites; Hazelton drew a $127,957 salary from Las
Banderas that rivaled the highest-paid managers in the
nearly 25,000-student Colton district.

Colton school board member Marge Mendoza-Ware
was among several school district and Las Banderas
officials who suspected that Hazelton was
double-dipping by earning a Las Banderas salary and
profiting from his corporation as well.

David Jenkins, a former New Education for
Communities board member, said he believed Hazelton
was being paid by the organization.

Hazelton denied receiving money from the corporation,
but the documents that would prove that were never
filed with the state or Internal Revenue Service. The
corporation never registered with the attorney general
as nonprofits are required to do. Nor did it file its state
or federal tax returns, which disclose top officials'
salaries. Hazelton's corporation owes more than
$4,000 to the state and it was suspended in 2007 for
failing to file its returns.

The rancor puzzled Hazelton's allies. Rita Hemsley, an
education researcher who served on the Las Banderas
board, praised Hazelton as an honest and professional
innovator. Brinker, the Colton school board member,
faulted poor communication between Somos Hermanas
Unidas and the corporation for the clashes. And
Brinker attributed its financial crisis to school
employees miscalculating its attendance, not the
involvement of Hazelton and his corporation.

The closure of Theory Into Practice Academy left
children such as Sorel and Rowan Straughan bereft.
Their mother was furious at the Hazeltons. Photo: Sam
Hodgson
In December 2004 an audit revealed that the school
ended its first year nearly $60,000 in the red. It had no
emergency reserves and no finalized plan to solve the
problem. And Las Banderas owed nearly $200,000 to
Guajome Park Academy from two separate loans. The
audit didn't blame any individual for the shortfall, but it
noted that Las Banderas was getting more state
funding than it should for the number of minutes it was
open annually, and had to lengthen the school year or
day to compensate.

Galvanized by the audit, Byas said he demanded
financial records from Hazelton. Byas said Hazelton
blamed computer failures for delaying the papers.
Hazelton later chalked up Las Banderas' shortfall to a
federal grant that had been delayed a month -- a factor
never mentioned in the audit -- and claimed not to
remember its findings, including auditors' worry that its
deficit "raises substantial doubt about [Las Banderas']
ability to continue as a going concern."

Things began to fall apart for the fledgling school. Hux
said she and other teachers voted against keeping
Hazelton in charge. Lechuga quit and Somos
Hermanas Unidas splintered from Hazelton and his
corporation. She said it meant the end of the nonprofit
when Las Banderas stopped renting its building,
cutting off money that had sustained them while other
funds for job training had dropped.

It was like when "you marry someone and you think
they're Mr. Wonderful," Lechuga said. "Then you
realize that this person is an abusive person."

As a junior at the school, Jonathan Alva said he saw
the change "out of nowhere." Enrollment was
plummeting and rumors spread that the school would
close. Alva said the new principal tried to sugarcoat it,
telling teens it would all be okay. But before class,
Alva's science teacher announced he was enduring a
pay cut for his students' sake.

"That told me, 'It's really over,'" Alva said.

Hazelton was gone by April when the Las Banderas
board decided unanimously to dissolve the school,
which could only pay its teachers through the month.
He was replaced by Guajome founder Sandra Angle,
and New Education for Communities promised to foot
its remaining payroll and bills. Board members formally
agreed they should "close the school with dignity,
respect and order" when the school year ended.

Yet later in the spring Alva and his classmates arrived
at Las Banderas on an ordinary school day to find the
doors unexpectedly locked. Many teens went to see
Byas, peppering him with questions about their records
and class credits, but Alva just went home.

"They closed and threw everything on our lap," Colton
school board member Mark Hoover said. "And the
students were the ones who suffered."

Alva couldn't get credit for several classes taught by
Las Banderas teachers without the right credentials,
and had to juggle extra classes after school to
graduate. He was still finishing his schoolwork in the
summer, too dejected to watch his classmates striding
to "Pomp and Circumstance." It was nothing like what
the ambitious kid from a "not exactly rich" family had
expected from Las Banderas: to graduate with college
credit, jumpstarting the college education his parents
never had.

"It all seemed too good to be true," Alva said. "And it
was, after all."

'Giving the Bully the Lunch Money:' Theory Into
Practice Academy
Robyn Schiefer adored the school that Mike and
Deborah Hazelton founded in 2006 where six of her
children were challenged, inspired and called
"scholars." She and her husband were astounded
when the 8-year-old who once faked stomachaches to
avoid class climbed into the family van early for school.
They were stunned when his older brother overcame a
hearing disability to blossom into an unlikely class
clown.

Two years later she stayed awake at night poring over
a thick Encinitas school district report that damned the
Hazeltons' actions, lamenting that their cherished
school had been led astray.

Principal Deborah Hazelton, an Oceanside elementary
teacher, created Theory Into Practice Academy, a
charter school that taught all children with the same
rigor and complexity as gifted children. Her husband
volunteered as president of its board, but as he
finished his first and only year at Cortez Hill Academy,
his wife grew insistent on hiring him. Her June letter to
the board argued that she needed "full-time
administrative support."

Board members were reluctant to hire Mike Hazelton.
They worried about nepotism, doubted whether
Hazelton was competent, and questioned whether they
could afford another leader. The school district had
already scolded them for incurring debts and
overstating their income; they wanted to pinch pennies
to buy their own building instead of sharing space with
Ocean Knoll Elementary. It was "the absolute wrong
time to entertain paying Mike Hazelton $125K per
year," board member Louisa Johnson wrote.

"I am gravely concerned that ... the tail is wagging the
dog," she wrote in an e-mail to her colleagues. Board
members said Deborah Hazelton's hints had evolved
into threats that she and the teachers would abandon
their school if Mike Hazelton wasn't hired. Her e-mail
added, "Giving the bully the lunch money -- This is not
a lesson I want my children to learn!!"

But the Hazeltons had a trump card. Mike Hazelton
informed the board that they had accidentally been
using the wrong bylaws, and the right bylaws gave
daunting powers to an outside corporation, Theory Into
Practice Education, Inc., that the Hazeltons created
and ran.

Board members were stunned. The corporation had
the final say on hiring or firing a principal or merging
with other organizations; it had the power to choose the
board president. Johnson called it "a 'neutron bomb'
that can at any time obliterate the board" if it didn't
capitulate to the Hazeltons.

Fighting the bylaws seemed useless after board
members learned that the rules had already been filed
with the Encinitas Union School District. But one year
later a private investigator hired on behalf of the school
district added up the details and concluded that the
board probably never approved the bylaws that named
the Hazeltons' corporation, and that Mike Hazelton had
given false bylaws to the school district, the Internal
Revenue Service, and the state.

Almost the entire board resigned over the next few
months, starting with Zalman Vitenson. "I simply no
longer wish to deal with this," he wrote to other board
members, "and they have the upper hand right now."

Shortly after the bylaws materialized, Hazelton was
hired as chief operating officer for $95,000 for the rest
of the academic year. Two months later the school
reported a $28,000 first-year deficit, instead of the
$6,000 to $12,000 surplus Mike Hazelton had
predicted. Its outstanding loans still worried the
Encinitas superintendent. Yet the school also bolstered
Deborah Hazelton's pay from $87,000 to $110,000.

There is no evidence that the TIP board approved
either of the Hazeltons' contracts, according to the
Encinitas Union School District. Meeting minutes do not
reflect the hires, but board members said they
remember discussing the raise and the contract.

And in January the Hazeltons asked the board to start
paying their corporation 1.5 percent of its annual
revenues and a onetime $35,000 fee for curriculum
and administrative support. It echoed the controversial
agreement that Las Banderas had made with New
Education for Communities.

Again Mike Hazelton said his corporation's directors --
which included the Hazeltons -- would earn nothing
because it was a nonprofit. But the corporation failed to
get tax exemptions from the IRS or the Franchise Tax
Board that would have required it to file public tax
returns listing its highest-paid employees and officers.

The corporation was overseen by a group that
included the Hazeltons and teacher Lisa Bishop, who
were already earning salaries from the school, and
University of Southern California educator Sandra
Kaplan, who sat on both boards. They said any
conflicts posed by paying the corporation they
controlled could be eliminated by signing a "conflict of
interest waiver."

The idea flummoxed board member Mark Demos. He
calculated that the school would pay the corporation
$300,000 in a decade, and questioned how that
benefited the school.

As Demos and others voiced their concerns, many
families defended the Hazeltons as a devoted principal
and "superhuman" administrator. A civil war erupted in
the stucco school. It grew so ugly, parent Katherine
Flesh said, that another mother shouted "bitch" down a
Target aisle at her as she shopped. She pulled her
children from the school just six weeks before summer
vacation, fearing for their safety.

The Hazeltons ultimately dropped plans to contract with
their corporation; Mike Hazelton told The San Diego
Union-Tribune that an auditor advised them against it.
Their plans in Palos Verdes and Los Angeles
crumbled. But the Encinitas school district began
investigating the school. The district demanded that
the school immediately fire the Hazeltons, remake its
board, collect any improper payments and gather a
slew of records.

After TIP Academy was closed, the Hazeltons originally
planned to open a new private school in this San
Marcos building. Photo: Sam Hodgson
Hazelton had earlier dismissed "this sort of public
flogging" as an attempt to discredit their school and
said the corporation had never gotten school money.
But the school district turned up a $2,156 check that
belied his claim.

Encinitas Union School District concluded that the
Theory Into Practice Academy board and the Hazeltons
mismanaged public funds and violated the state conflict
of interest law by improperly approving contracts that
could profit board members, including contracts for
Mike Hazelton, Deborah Hazelton and teacher Lisa
Bishop. The school district's investigation said Deborah
Hazelton used her influence to goad the board to hire
Mike Hazelton for a "lucrative employment position."

"[T]here is no evidence to suggest that anyone else
was considered or interviewed for the position, or that
any effort was made to establish a reasonable salary
for the position based on market factors or other
criteria, or to otherwise validate the transaction under
any validating method available under the law," the
school district concluded.

Encinitas Union School District alleged that those acts
violated the Political Reform Act and a government
code that bans public officials and employees from
participating in contracts that could benefit them
financially. Charters have long argued that the second
rule, which predates charter schools, does not apply to
them. The question has never been settled in court.

The school complied with most -- but not all -- of the
district's demands. It fired Mike Hazelton and the
Hazeltons' corporation gave up its powers over the
school, but Deborah Hazelton stayed until July, and the
school said recouping money was beyond its power. It
was shut down despite pleas from parents such as
Jake Bartow, who said closing the successful school
was a second wrong that couldn't make things right.

"If it wasn't for the Hazeltons, there wouldn't be a TIP,"
parent Richard Boger said. "And if it wasn't for the
mistakes they made, we would still have a TIP."

As Robyn Schiefer pored nightly over the school
district's report, her confidence in the Hazeltons
dissolved. She was furious that their board hadn't
stopped the Hazeltons earlier; furious that the school
district wouldn't give them another chance; furious that
the school had paid for the Hazeltons' mistakes.

"If they did all this wrongdoing, they should be behind
bars," she said.

As the scandal subsided in Encinitas, the Hazeltons
began planning another school. On a sunny August
morning they festooned a San Marcos building with
aqua and blue balloons and welcomed visitors to their
future private school, The Academy North County,
where every kid would "think like a scholar." Tuition
topped out at $7,500, a fee Mike Hazelton said he was
sorry to charge.

"This goes against what we want to do," Hazelton said
in August. "We want to change public education."

They had hoped to open in September, but within a
month their plans changed again. Talk of opening a
school disappeared from their website, which instead
advertised tutoring at The Academy Learning Center in
Solana Beach for $75 per hour.

Thursday: The freedom that allows some charter
schools to thrive has spawned an unintended risk:
vulnerability to fiscal mismanagement. Charter schools
usually shoulder the business tasks that school
districts handle for traditional schools, and some
educators and boards are overwhelmed by the task.
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