Audit: 2 Indiana online schools misspent nearly $86 million

Regional News

This Sept. 13, 2019, photo shows the closed office of Indiana Virtual School, in Indianapolis, with a message to creditors taped to the door stating that it no longer had assets or bank accounts. A new state audit report said Indiana Virtual School and a sister online school inflated their enrollments by thousands of students and inappropriately paid nearly $86 million to companies linked to the schools’ founder or his associates. (AP Photo/Tom Davies)

INDIANAPOLIS (AP) — A new state audit report says two Indiana online charter schools accused of inflating their enrollments inappropriately paid nearly $86 million to companies linked to the schools’ founder or his associates.

The State Board of Accounts review found that the Indiana Virtual School and Indiana Virtual Pathways Academy wrongly received $68.7 million in state payments by improperly claiming about 14,000 students as enrolled between 2011 and 2019.

The report says those students had no online course activity.

Findings of the report were given to federal and state authorities for possible criminal violations. The U.S. attorney’s office in Indianapolis declined to comment.

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