Charter School Board Member charged with stealing a record $750K

Orange County District Attorney Press Release

For Immediate Release, Case # TBA: February 11, 2014

BOARD MEMBER CHARGED WITH STEALING $750,000 IN LARGEST CHARTER SCHOOL THEFT IN CALIFORNIA HISTORY

SANTA ANA – A former board member for a charter school district has been charged with stealing $750,000 in the largest charter school theft in California history. Jeremy Landau, 43, Sherman Oaks, is charged with 13 felony counts of money laundering, two felony counts of misappropriation of public funds, and one felony count of conflict of interest in a sale and purchase, with sentencing enhancements and allegations for causing over $100,000 in loss, property loss over $200,000, and fraudulent transactions over $150,000. If convicted, he faces a maximum sentence of 14 years and eight months in state prison. Landau is being held on $750,000 bail and must prove the money is from a legal and legitimate source before posting bond. He is expected to be arraigned Thursday, Feb. 13, 2014, at 10:00 a.m. in Department CJ-1, Central Jail, Santa Ana.

In May 2013, Landau is accused of joining the board of directors for California Virtual Education Partners (CAVEP), an Orange-County based charter school district (in Newport Beach) that operates five online charter schools in California.

In June 2013, the defendant is accused of asking the other board members for $750,000 from CAVEP’s account with the promise of a $3 million return donation in January 2014. Landau is accused of using his position on the board to influence the other members to vote in his favor regarding the funds.

Landau is accused of laundering the money by moving it between various accounts and failing to repay any of the $750,000 to CAVEP. He is accused of stealing the money for personal gain.

The charter school is funded by the state, and therefore Landau is accused of stealing $750,000 in taxpayer dollars.

A private investigator was hired by CAVEP after the district became suspicious of Landau, and a case was presented to the Orange County District Attorney’s (OCDA) Office in November 2013.

The OCDA Bureau of Investigation, with assistance from the Federal Bureau of Investigation, investigated this case and arrested Landau Feb. 10, 2014. The investigation is ongoing.

Senior Deputy District Attorney Chris Duff of the Special Prosecutions Unit is prosecuting this case.

###

Tony Rackauckas, District Attorney 401 Civic Center Drive West Santa Ana, CA 92701

Contacts:

Susan Kang Schroeder Chief of Staff Office: 714-347-8408 Cell: 714-292-2718 Farrah Emami Spokesperson Office: 714-347-8405 Cell: 714-323-4486