As a scholar who studies the legal and policy issues pertaining to school choice, I’ve observed that the same type of fraud that occurred at Enron has been cropping up in the charter school sector. A handful of school officials have been caught using the Enron playbook to divert funding slated for these schools into their own pockets.

“In the case of Enron, the gatekeepers failed to consider the risks that Fortune 500 companies posed to the financial markets,” Preston Green explains. “They wrongly assumed that these entities would play by the rules. As a result, Enron was allowed to engage in its illegal activities for several years without detection. ”

Radio Dispatch with The Knefels (13:09 Neag School’s Preston Green is interviewed about how the charter school sector resembles the Enron crisis)