NEWS

Closed online charter school owes $117M to state of Ohio, auditor says

Laura A. Bischoff
The Columbus Dispatch
ECOT founder Bill Lager speaks at a rally at the Ohio Statehouse in 2017. State Auditor Keith Faber said the Electronic Classroom of Tomorrow owes Ohio more than $117 million.

The Electronic Classroom of Tomorrow – an online charter school that abruptly closed in January 2018 – owes the state more than $117 million, a newly released state audit found.

Ohio Auditor Keith Faber on Tuesday said the school owes $106.6 million to the state Department of Education and another $10.6 million to the Attorney General's office. Faber's auditors found that ECOT wasn't entitled to some of the state money it received in 2016 and 2017 and none of the cash it received in 2018.

William Lager founded ECOT in 2000 and built it into the largest online charter school in Ohio. Lager also operated Altair Learning Management Inc and IQ Innovations LLC, which contracted with ECOT to provide support services.

In 2016, the Ohio Department of Education determined that ECOT had been overstating the number of students it served and the state demanded repayment of $80 million. That triggered a financial death spiral for the school, which abruptly shut its virtual doors in January 2018.

In May 2018, then-state Auditor Dave Yost issued a blistering report on the operation and referred the audit to county and federal prosecutors for possible investigation.

Alyssa Ruff, 10, 4th grader from Canton along with her brother Jordan, 13, 7th grader, left, cheers during an ECOT rally in May 2017. The Electronic Classroom of Tomorrow closed in 2018 and now faces legal proceedings and investigations. State Auditor Keith Faber said ECOT owes Ohio more than $117 million.

In February 2019, the FBI and U.S. Department of Justice subpoenaed nearly 20 years of campaign contribution records for the Electronic Classroom of Tomorrow — an indication that the now-closed online charter school and its key players have come under federal criminal investigation.

A spokeswoman for U.S. Attorney Ken Parker did not immediately respond to a request for comment on any ECOT investigation.

Legal proceedings against ECOT, Lager and others are ongoing. In May, a Franklin County Common Pleas Court said Lager's companies own $161.6 million.

Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

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