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The previous CEO of an Indianapolis constitution community is accused of defrauding its colleges by working with two different people to invoice for items and providers that had been by no means offered.
Brian Metcalf, who served as CEO of Tindley Accelerated Colleges from July 2019 to December 2022, was charged with 9 counts of wire fraud as a part of what a federal indictment describes as a “scheme to defraud and to acquire cash” from an unidentified Indianapolis constitution college system and one other unidentified nonprofit company.
Tindley’s board of administrators confirmed to Chalkbeat that the constitution community was “one in all two victims defrauded by the alleged legal enterprise.”
The indictment claims that two different defendants, Kimberly Maddox and James Darnell Campbell, billed false invoices to the constitution community in collaboration with Metcalf. The 2 later despatched cash to Metcalf or made funds on his behalf, the indictment alleges — together with funds for bank card, automobile mortgage, and mortgage bills, in addition to funds to a on line casino that hosted his household reunion and a building firm that repaired his roof.
The federal authorities seeks over $1 million from Metcalf by federal forfeiture legal guidelines.
A grand jury in Illinois introduced the indictment, which was below seal till December 2023. Maddox and Campbell had been charged with 4 and 5 counts of wire fraud, respectively.
Attorneys for Metcalf declined to touch upon the allegations, whereas attorneys for Maddox and Campbell didn’t reply to questions from Chalkbeat. Court docket paperwork point out that every one three have pleaded not responsible.
Information of the indictment, first reported by Chalkbeat, follows the indictment of operators of two digital constitution colleges in January — expenses that raised questions on constitution college oversight and accountability. One other former Tindley CEO additionally confronted scrutiny in 2015 for incurring lavish journey bills whereas the constitution community struggled for money.
A spokesperson for the U.S. Legal professional’s Workplace for the Northern District of Illinois didn’t reply to questions on how a lot cash the alleged fraud concerned, or what providers the defendants allegedly billed to the college. However the indictment alleges that the fraud started occurring months after the Tindley community closed and consolidated two of its 5 Indianapolis colleges, citing monetary struggles and low enrollment. The community now operates three colleges spanning grades Ok-12 and serves 975 college students, based on state enrollment information.
In an announcement to households, the college stated it intends to hunt restitution.
“Along with totally cooperating with federal authorities, we employed the legislation agency of Ice Miller and a forensic accounting agency to conduct an unbiased investigation to know the information of the scenario, assess our inside processes and procedures, and implement further safeguards,” the board advised dad and mom in a message in December.
Metcalf helped invoices seem authentic, court docket paperwork declare
Metcalf was chosen to guide Tindley in late June 2019, based on a Fb publish from the college. He beforehand labored in Chicago Public Colleges.
Court docket paperwork say that Metcalf and Maddox agreed that Maddox would submit fraudulent invoices to Metcalf, who would set off fee from his employers — first, an unnamed nonprofit company from 2018 to 2019, then Tindley colleges from October 2019 to August 2022.
After receiving the funds, Maddox would then pay Metcalf a portion of the funds by CashApp, or make funds for Metcalf’s private bills comparable to bank card payments and the fee to the on line casino, the filings say.
Paperwork additional say that Campbell, an accountant for Maddox, additionally submitted fraudulent invoices starting in 2021 to Metcalf, who would set off the fee from Tindley. After receiving the funds, Campbell would pay Metcalf by checks, or through funds to his mortgage and auto mortgage suppliers, the paperwork say.
Metcalf is accused of offering language to Maddox and Campbell that will make the invoices seem authentic.
By means of federal forfeiture legal guidelines, prosecutors are searching for simply over $1 million from Metcalf, in addition to a Chicago property. They’re additionally searching for $365,700 from Maddox and $400,000 from Campbell.
It’s unclear whether or not the fees might result in jail time.
Because the Tindley community’s CEO, Metcalf made $190,726 in 2022, based on state public employment information.
Tindley households knowledgeable of indictment, constitution community says
Metcalf is not affiliated with the college.
He resigned Dec. 14, 2022, after college officers tried to serve with him a subpoena the college obtained on Dec. 6, based on Hilary Buttrick, chair of the Tindley board. The board appointed Sandra Tresselt as interim CEO, whereas cooperating with legislation enforcement and conducting an inside investigation, Buttrick stated.
The college was requested to not disclose any details about the legislation enforcement investigation till it was full, Buttrick stated. The college shared info with Tindley households the day after the indictment was unsealed in December 2023.
The college employed a brand new president, Jonathan Harris, in June 2023.
A spokesperson for the college’s authorizer, the Mayor’s Workplace of Training Innovation, stated the Tindley board “notified OEI of the allegations and has maintained communication all through this course of.”
Two colleges within the community had been renewed earlier than the workplace was made conscious of the allegations: Tindley Summit Academy in 2021 and Tindley Genesis Academy in 2022.
Charles A. Tindley Accelerated College is ready to undergo the renewal course of this fall.
The federal case has a standing listening to set for July.
Amelia Pak-Harvey covers Indianapolis and Lawrence Township colleges for Chalkbeat Indiana. Contact Amelia at apak-harvey@chalkbeat.org.
Aleksandra Appleton covers Indiana schooling coverage and writes about Ok-12 colleges throughout the state. Contact her at aappleton@chalkbeat.org.
