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WILMINGTON, NC (WWAY) -– Baker Mitchell, the founder of Roger Bacon Academy in Leland, is facing some challenges. He is under federal investigation.

His newest charter school, Douglass Academy, has an enrollment problem with the state and there are questions about where millions of your tax dollars are going to support his schools.

Mitchell is an elusive person. His secretary hangs up on us when WWAY calls with questions and he rarely appears in public to talk with the media.

Mitchell would not acknowledge whether he knew he is being investigated by the US Department of Education’s Office of the Inspector General.

While the document that confirms the investigation does not go into detail, Brunswick County Superintendent Dr. Edward Pruden thinks it has to do with improper enrollment practices.

Two former employees told WWAY, on condition of anonymity, that they were aware of fraudulent ways of counting students to beef up the numbers at Mitchell’s charter schools.

For instance, they say some students would just show up for the first 20 days so the school could get the allocated tax dollars and then quit, and go back to Brunswick County Public Schools.

In Brunswick County for example, Charter Day School gets $2,464 from the county and $4,692 from the state for each student. That’s a total of more than $7,000 per pupil.

A lot of money to play with if that student never shows up for class after the first 20 days, and a burden on the county school system that takes the student back.

At Douglass Academy in Downtown Wilmington, Mitchell only has about 35 students. The state says he needs 65 to be open.

Mitchell faces a hearing next month in Raleigh to explain what he will do to get the numbers up.

“It (the statue) specifies no time limit on which you are to achieve that 65 number. We have over 90 students registered for this fall. We are looking forward to growing to fulfill our charter,” said Mitchell.

Then, there are the tax returns from Charter Day for 2008 through 2012 which show Mitchell got millions of your tax dollars from management fees, as well as for building and equipment rentals. Add the five years of returns up, and it’s almost $16 million.

State law says Mitchell does not have to explain how he spends the money in that account, but several employees have told us Mitchell takes the building and rental money and pays it to a company called Coastal Conservancy LL, which he owns.

Coastal Conservancy then charges Charter Day to rent the land, which Mitchell owns as well, and then charges the school rent for the buildings, the chairs, the tables, and even the pencils. Tax dollars going straight back into Mitchell’s pockets, which he is not spending on students or teachers.

Mitchell says all dollars are accounted for in the school’s audit.

“We’ve had a series of no findings audits. We keep our books identically to the District’s. We are required by state law to maintain charter accounts. All of that information is in our audits that are publically available if you would like to read them,” said Mitchell.

WWAY asked Mitchell to explain what actually are in the audits, but he would not elaborate.

“If you are too lazy to read the audit, I cannot help you,” said Mitchell.

Americas For Prosperity sponsored Friday’s open house at Douglass, claiming it is excited about supporting school choice.

WWAY tried to sit down with its director, John Dudley, and discuss the federal investigation and how Douglass is not meeting enrollment requirements.

While WWAY had the documents to show him, he refused to look at them and said he had no comment.

“We talked enough. I can’t be here all day,” said Dudley.

WWAY also tried to talk to local politicians at the open house about the investigation, but they said this was the first they were hearing about it.

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33 Comments on "ONLY ON 3 Investigation: Charter school owner under federal investigation"

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2016 years 2 months ago

this guy was raking in MILLIONS – he was taking FAR more than $4,000 per student.

From the sound of the article he was operating a pretty elaborate ponzi scheme.

I’ve had both private and public education and one is no different than the other for quality of education – I hope THAT has changed but from what I’ve read the jury is still out on it.
But if this is the type of leadership we have for the Committee, and at this particular school, then this guy did MORE HARM than good in the fight between public and private education supporters.


2016 years 2 months ago

If you look at http://www.ncleg.net/Sessions/2013/Bills/Senate/PDF/S337v8.pdf

You will find:
“The number of students to be served, which number shall be at least 65, and the minimum number of teachers to be employed at the school, which number shall be at least three. However, the charter school may serve fewer than 65 students or employ fewer than three teachers if the application contains a compelling reason, such as the school would serve a geographically remote and small student population.”

So far I don’t see an issue with this. Baker is correct there is no time framed given and I really think the school could fall… Read more »

2016 years 2 months ago

WWAY, “Two former employees told WWAY….they were aware of fraudulent ways of counting students…”
Just because someone is “aware of fraudulent ways” doesn’t mean it has happened. These “ex employees” (which I am sure don’t exist) are not claiming they knew of any fraud perpetrated.

Does anyone have any reading comprehension or skills in logical deduction? This article has NO news, and no information whatsoever.

The Brunswick County Superintendent “thinks it has to do with improper enrollment practices.” —THINKS? You mean he doesn’t know??

If there were a real story here…WWAY would publish it for all to… Read more »

Who Cares
2016 years 2 months ago

WWAY….this story is not getting the feed back you are looking for. Go forward and quit beating this dead horse. If Mr. Mitchell can provide this quality of education for students and still make some money from it….obviously you should be questioning the ‘county and state’ schools who are not getting the same results, but are getting paid more money.

CDS/RBA parent
2016 years 2 months ago

Have you volunteered at the school? Students don’t have access to PC’s that work. I used to go in to help with AR testing. PC was broken in one class, the teacher didn’t seem to care. My children have said most of the PC’s are broken on computer lab. The INTERNET is ALWAYS down. As a matter of fact, it was down today- for more than 3 hours. SKYPE- emergencies- there would be no way to get in touch with with co-workers during emergencies. Flooding with a new drainage system. Years… Read more »

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