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93 Ind. L.J. 1121 (2018)
Are Charter Schools the Second Coming of Enron?: An Examination of the Gatekeepers That Protect against Dangerous Related-Party Transactions in the Charter School Sector

handle is hein.journals/indana93 and id is 1173 raw text is: Are Charter Schools the Second Coming of Enron?: An Examination of the Gatekeepers That Protect Against Dangerous Related-Party Transactions in the Charter School Sector' PRESTON C. GREEN, Ina BRUCE D. BAKERb JOSEPH 0. OLUWOLEc INTRODUCTION.........................................................1122 1: OVERVIEW OF ENRON .................................................1124 A. ENRON AND DEREGULATION. .....................................1124 B. THE LJM SPES............ .....................................1125 C. ENRON'S COLLAPSE.............................................1126 II: ENRON'S GATEKEEPER PROBLEMS .....................................1126 A. ARTHUR ANDERSEN.............................................1126 B. INDEPENDENT ANALYSTS ........................................1128 C. CREDIT RATING AGENCIES....... ................................1129 D. ENRON'S BOARD OF DIRECTORS ..................................1129 E. SECURITIES AND EXCHANGE CO ISSION (SEC)...................... 1130 III: CHARTER SCHOOLS AND RELATED-PARTY TRANSACTIONS................... 1130 A. CHARTER SCHOOL DEREGULATION AND PRIVATE INVESTORS............. 1130 B. EXAMPLES OF ENRON-LIKE RELATED-PARTY TRANSACTIONS ........ 1133 1. IMAGINE SCHOOLS .......................... ............... 1133 2. Ivy ACADEMIA CHARTER SCHOOL ........................... 1134 3. AMERICAN INDIAN MODEL CHARTER SCHOOLS..... ........... 1136 4. GRAND TRAVERSE ACADEMY ........... .................... 1137 5. PENNSYLVANIA CYER CHARTER SCHOOL..... ............... 1138 C. THE FEDERAL GOVERNMENT, RELATED-PARTY TRANSACTIONS, AND THE NEED FOR STRONG GATEKEEPING ................................. 1139 IV: CHARTER SCHOOL GATEKEEPERS................................................... 1142 A. AUDITORS ..................................................... 1142 B. CHARTER SCHOOL GOVERNING BOARDS ....TRANSCTI.......................... 1150 C. CHARTER SCHOOL AUTHORIZERS ................................. 1154 D. STATE EDUCATION AGENC IES (SEAS) ..................................... 1156 E. U.S. DEPARTMENT OF EDUCATION ................... ............. 1157 CONCLUSION ............................................................ 1160 * The authors thank dun Green, James Kaufman, and Julie Mead for their helpful proofreading and editing of earlier versions of this Ar-ticle. a Professor of Educational Leadership and Law, University of Connecticut. b. Professor of Education, Rutgers University. c. Professor of Education, Montclair State University.