Why It Matters
Two founders of Oklahoma’s Epic Charter Schools will face trial on felony embezzlement and racketeering charges after a judge ruled prosecutors have sufficient evidence to proceed. The case involves allegations that $55 million in public education funds were diverted to private accounts between 2013 and 2021, in what state auditors have called the largest abuse of taxpayer dollars in Oklahoma history.
The ruling marks a significant development in a criminal case that has been delayed by procedural challenges for nearly four years since the arrests of David Chaney, 47, and Ben Harris, 50.
What Happened
Oklahoma County Special Judge Jason Glidewell ruled Thursday that prosecutors presented adequate evidence on nearly all charges against the two men. He dismissed one embezzlement count against both defendants and one computer fraud count against Chaney. The remaining charges under Oklahoma’s racketeering statute include embezzlement, conspiracy, and fraud.
A formal arraignment is scheduled for June 24. Prosecutors filed the 14-count felony indictment in 2022, alleging the defendants diverted tens of millions of dollars intended for student education into their private management companies.
Judge Glidewell rejected a central defense argument that public funds became private once deposited into business accounts. The money remains public until its intended educational purpose is fulfilled, he ruled.
By the Numbers
Bank records reviewed by prosecutors show Epic Youth Services, the private management company controlled by Chaney and Harris, collected more than $69.3 million in management fees between 2013 and 2021. The three men involved split $55 million of that total, according to testimony from chief financial officer Josh Brock, who is cooperating with prosecutors.
Harris received approximately $25 million, Chaney received $23 million, and Brock received $7 million. Brock testified he received a 10 percent cut of Epic Youth Services’ profits while Chaney and Harris each kept 45 percent.
The preliminary hearing spanned eight days and included testimony from state investigators, Epic staff, state auditors, and Brock, who also faces charges but is working with prosecutors to avoid prison.
The Allegations
Prosecutors allege the defendants used shell companies and submitted false invoices based on estimates rather than actual costs to conceal their profits from state oversight. Epic Youth Services also controlled the school’s student learning fund, an account designated for laptops, extracurricular activities, and other student expenses. Investigators say the company retained unspent funds instead of returning the money to the school.
According to prosecutors, public education dollars were spent on political donations, expenses for a California charter school, and personal credit card charges for Chaney and Brock. A confidential Internal Revenue Service investigation into the matter remains ongoing.
Zoom Out
The case stems from a 2020 state auditor’s report that documented financial irregularities at Epic Charter Schools, one of Oklahoma’s largest online education providers. Charter school financial accountability has drawn increased scrutiny nationwide as enrollment in virtual schools expanded during and after the pandemic.
Epic severed ties with Chaney, Harris, and Brock in 2021 following the audit findings. Both defendants have denied wrongdoing throughout the criminal proceedings.
What’s Next
The case will proceed to arraignment on June 24, where Chaney and Harris will formally enter pleas. A trial date has not yet been set. The procedural history has been marked by delays, including a two-year pause after defense attorneys sought to remove the original trial judge. Though multiple courts rejected that effort, the judge voluntarily recused herself, leading to further delays before the preliminary hearing resumed.
The IRS investigation continues separately from the state criminal case.