SFOF, Open the Books Uncover $225 Million in Alleged K-12 Fraud Across 24 States

1 articles · Updated · Fox News · Jul 8

$225 million in alleged K-12 fraud was identified in nearly 90 cases spanning 24 states and Puerto Rico from October 2019 to March 2026, according to a new SFOF and Open the Books report.
The cases cited embezzlement, fake invoices, inflated enrollment, bid-rigging and kickbacks, with about $67 million ordered repaid through court rulings or settlements, though actual recoveries remain unclear.
The largest allegations included $44 million tied to two closed Indiana online charter schools, $24 million billed by a Puerto Rico tutoring company for services never provided, and a $17 million Broward County contracting scheme.
The report said only 3 of the 20 largest federally funded school districts appeared in Education Department inspector general records, arguing that federal oversight missed major districts while smaller systems, charters and online schools drew scrutiny.
Released as the Trump administration pushes a nationwide anti-fraud drive, the findings are being used to press for tighter oversight of federal education dollars and a bigger state and local role.

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With $225 million in school fraud exposed, how much more remains hidden from taxpayers?

Will shifting oversight to states stop school fraud or just create new loopholes?

Beyond audits, can new technology predict and stop the next major school fraud scheme?

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