An Atlanta charter school struggling with the disappearance of more than $600,000 is now dealing with a second financial blow.
Under the leadership of the school’s founder, who is under investigation in connection with the missing money, Latin Academy took out $600,000 in loans without the school board’s authorization, according to legal and school financial records.
The terms of the loan agreements with a California finance company call for penalties of up to nearly 25 percent if the school defaults.
Latin Academy, a middle school in south Atlanta, repaid some of the money, but the company is currently suing the school over unpaid debt in federal court.
School founder Chris Clemons is also a suspect in connection with the investigation of hundreds of thousands taken from the school to pay for dinners, non-work-related travel, bonuses to employees and "personal entertainment at local night clubs," according to a police report. An initial estimate put those losses at more than $600,000.
Clemons has not responded to multiple emails and phone messages from The Atlanta Journal-Constitution.
The school’s board cut ties with Clemons last year shortly before it discovered the missing money. Board chairman Kaseem Ladipo declined to comment on the loans or litigation.
Latin Academy students do well academically. But last month, the school's board considered closing it at the end of this school year, citing financial mismanagement and the alleged theft. After protests from students, parents and staff, the board postponed a decision until this month.
The board is scheduled to meet Thursday.
State lawmakers have cited Latin Academy as a reason to tighten oversight of charter school finances. Separate bills awaiting a vote on the Senate floor would require charter school board members to get annual training and require all schools, including charter schools, to post more financial information online.
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