Here are a few examples: the for - profit company will install their own handpicked boards that in turn hire the company for «management,» and these fees routinely cost up to 15 % of the school's FTE; the for - profit company will demand that parents
purchase supplies directly from the school itself, which is often another LLC that charges exorbitant rates for the basics; in many cases, the biggest part of the
scam is one LLC (e.g. Red Apple Development, the construction
arm of Charter Schools USA) will
purchase land to build the school on and then turn around and charge the school (read: taxpayers) rent that is substantially higher than the going rate / property value, sometimes as high as a million dollars a year.