Former CEO of Charter School Pleads Guilty in Fraud Case

PHILADELPHIA, PA—Kevin O’Shea, 50, of Philadelphia, pleaded guilty today to mail fraud, theft from a federally funded program, and filing a false tax return, stemming from his role in defrauding the Philadelphia Academy Charter School (“PACS”), announced United States Attorney Michael L. Levy.

O’Shea admitted to stealing between $400,000 and $1 million from PACS by: (1) using approximately $710,000 in PACS’ funds to purchase a building in the name of his purported non-profit business; (2) demanding kickbacks from PACS vendors; (3) submitting for reimbursement at least $40,000 in fraudulent invoices for personal meals, entertainment, home improvements, and gas and telephone bills; (4) having approximately $50,000 worth of home repairs improperly billed to PACS; (5) collecting approximately $34,000 in rent from entities using PACS facilities; and (6) hiring a computer firm in an attempt to destroy computer evidence to obstruct this investigation. O’Shea also admitted to filing a false tax return for 2006.

O’Shea faces up to 33 years in prison when sentenced on October 22, 2009.

The case was investigated by the United States Department of Education Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Derek A. Cohen.

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