Audit: Pa. charter misused $600K over 4 years

September 18, 2012 4:55:49 AM PDT
A report from the state auditor general says a Pennsylvania charter school used more than $600,000 in taxpayer money to make improper loans and payments to employee family members.

Auditor General Jack Wagner is asking the Lehigh County district attorney's office to conduct a criminal investigation into the finances of Vitalistic Therapeutic Charter School from 2006 to 2010.

Wagner's audit released Monday concluded founder Naomi Grossman paid herself $100,000 on top of her salary for running the charter school and its now-shuttered preschool.

The audit says the school also made improper loans to the preschool for students with mental health problems and learning disabilities.

Grossman operated the preschool before opening the charter. She denies any wrongdoing.

The charter school still exists but hasn't opened yet this year.