Attorney General Curtis Hill announced today that recipients of contributions from affiliates of two online schools that were found by the Indiana State Board of Accounts (SBOA) to have misappropriated funds should have the option of remitting the sum of those contributions to the Indiana Treasurer of State’s Office.

As has been widely reported, the SBOA announced on February 12 its conclusion that public funds were misappropriated through malfeasance, misfeasance, and/or nonfeasance by Indiana Virtual School (IVS) and Indiana Virtual Pathways Academy (IVPA).

Specifically, the SBOA determined that IVS and IVPA inappropriately received more than $68.7 million, collectively, from the State of Indiana based on misrepresentations regarding the number of enrolled and attending students.

The SBOA also found that both virtual schools inappropriately disbursed more than $85.7 million, collectively, in public funds to vendors in situations where there was no invoice or no itemized information on the invoice, and a related party was involved.

“These revelations may be troubling to political candidates who received financial contributions from these schools or their affiliates,” Attorney General Hill said. “Donating the funds to charity may be a way of divesting from these organizations, but depositing the funds with the state subject to a completed investigation and final resolution may better preserve the state’s interest in restitution.”

Under Indiana law, the Office of the Treasurer holds fiduciary responsibility for state funds, Attorney General Hill noted. “Because this money may belong to the State of Indiana and Hoosier taxpayers, these funds could be protected until a final disposition,” Attorney General Hill said. “This would provide a secure option for those who feel compelled to return the funds. Last Friday, my office requested that the Indiana Treasurer of State’s Office designate an account that will protect the state’s interest in this regard.”

The House of Representatives on Tuesday voted in support of a bill sponsored by State Rep. Wendy McNamara (R-Evansville) that would help protect vulnerable Hoosiers from financial exploitation.

McNamara said exploitation is the fastest growing and most common type of elder abuse, and exploitation of minors is also a concern. Examples include foster children who have their Supplemental Security Income erroneously used by their parents, or senior citizens suffering from diseases like Alzheimer’s being preyed upon.

“Exploitation of dependent adults and children are some of the most underreported crimes, and we need more tools to help combat abuse of power,” McNamara said. “We want to protect the most vulnerable members of our community by making it easier for them to seek legal action against those who have taken advantage of them.”

According to McNamara, it is considered theft for a guardian or person with power of attorney to use their authority to exploit money from a dependent. She said unfortunately, many cases of exploitation are not pursued because the amount taken is less than $10,000, which is the current minimum needed for prosecution. This legislation would remove the minimum and include minors as a protected group.

“I know firsthand the impact that a disease like Alzheimer’s can have on families,” McNamara said. “I want to know that our elderly, who may not be able to make financial decisions for themselves, have an opportunity to receive justice when a person in a position of trust takes financial advantage of them.”

The Alzheimer’s Association and the Indiana Statewide Independent Living Council testified in support of the proposal.

Senate Enrolled Act 249 is now eligible to be signed into law by the governor. Visit iga.in.gov to learn more.