A coalition of state financial officers reported approximately $225 million in alleged fraud in K-12 education across the United States over the past six years. The report, released by the State Financial Officers Foundation (SFOF) and Open the Books, analyzed Education Department Office of Inspector General (OIG) reports from October 2019 to March 2026, identifying nearly 90 cases of fraud including embezzlement, inflated enrollment, and kickbacks across 24 states and Puerto Rico.
SFOF CEO OJ Oleka stated that defrauding education funds is particularly harmful, emphasizing the need for stronger oversight of federal education spending. The report highlighted that about $67 million was ordered to be repaid through court rulings or settlements, though the actual recovery amount remains unclear. It noted that only three of the 20 largest federally funded school districts were mentioned in OIG records, indicating potential gaps in oversight.
The report detailed significant fraud cases, including two now-closed Indiana online charter schools that allegedly received $44 million through inflated enrollment figures, and a Puerto Rican tutoring company that billed for services not provided, totaling $24 million. In Florida, a Broward County Public Schools official allegedly directed $17 million in contracts to a personal acquaintance's business.
In Texas, former Houston Independent School District officials were found guilty of a fraud scheme exceeding $6 million involving construction contracts. The report also cited cases in California where students lost significant funds due to fraudulent activities by school officials. The findings underscore the ongoing issues of fraud in education and the need for improved accountability and oversight.