San Diego Recovers $25M Stolen from Fraudulent Charter Schools

Funds will support mental health, safety, and education programs for K-12 students across the county.

Jan. 30, 2026 at 10:15pm

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The San Diego County District Attorney's Office has recovered $25 million in funds stolen through a fraudulent charter school scheme and will provide the money to the San Diego County Office of Education to implement the HeartSpire initiative, a seven-year plan to expand student and family access to mental health, safety, wellness, and educational resources.

Why it matters

This case represents one of the largest fraud schemes targeting taxpayer dollars intended for primary education in the country. The recovered funds will now be used to directly benefit K-12 students and families in San Diego County who have been impacted by challenges related to mental health, safety, and access to educational resources.

The details

Prosecutors say the defendants in the case, known as the "A3 charter schools", collected state funds by alleging students were enrolled in their programs, when in reality they were simply paying for student information and enrolling children in summer school without providing full educational services. The schools earned up to $4,000 per student, with the defendants transferring millions of those funds to private companies they owned.

  • In 2022, funds recovered from the case led to 47 K-12 community grants totaling around $6.4 million.
  • On January 31, 2026, the San Diego County District Attorney's Office announced it is providing $25 million to the San Diego County Office of Education to implement the HeartSpire initiative.

The players

San Diego County District Attorney's Office

The office that prosecuted the fraudulent charter school case and is now providing $25 million in recovered funds to support K-12 students in San Diego County.

San Diego County Office of Education

The organization that will receive the $25 million in funds to implement the HeartSpire initiative, a seven-year plan to expand student and family access to mental health, safety, wellness, and educational resources.

A3 Charter Schools

The fraudulent charter school network that collected state funds by alleging students were enrolled in their programs, when in reality they were simply paying for student information and enrolling children in summer school without providing full educational services.

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What they’re saying

“This funding will make a real difference in the lives of K-12 students and their families as they navigate wellness, safety, homelessness and mental health challenges.”

— Summer Stephan, San Diego County District Attorney (nbcsandiego.com)

“We are grateful the DA has entrusted SDCOE with this opportunity to build upon our efforts to positively impact students, families, and communities throughout the county. HeartSpire is rooted in the belief that human connection, mental health, and relational infrastructure are essential to thriving educational systems.”

— Dr. Gloria E. Ciriza, San Diego County Superintendent of Schools (nbcsandiego.com)

What’s next

The San Diego County Office of Education will begin implementing the seven-year HeartSpire initiative to expand student and family access to mental health, safety, wellness, and educational resources using the $25 million in recovered funds.

The takeaway

This case highlights the devastating impact of fraud schemes targeting public education funds, but also demonstrates the importance of diligent prosecution and the ability to redirect stolen resources back into supporting the needs of students and families in the community.