Cyber School Meets Obstacle In Five C.P. Courts

According to the opinion, Einstein Academy is also known as The E-Academy Charter School (TEACH), which is registered with the Department of State as a fictitious name for the National Organization for Children. Einstein Academy Charter School is not a registered fictitious name for any existing entity, the court said.



“As Einstein existed at this time period only as an idea of Howard Mandel and Mimi Rothchild [husband and wife], Einstein’s address is noted on the Department of State Records as the Mandel residence,” Shaffer wrote.



This idea, the judge explained, is to be a chartered cyber school educating students through the Internet.



Einstein is to be run by a corporation called Tutorbots Inc., incorporated in June 2001 as a for profit corporation with a maildrop at Mailbox’s Etc. in Jenkintown. Rothchild is the sole owner of Tutorbots and Mandel is the executive director, Shaffer said.



Einstein and Tutorbots are capitalized by personal loans from the couple’s relatives. On July 31, 2001, the judge said, Einstein had approximately $31,000 on deposit; the charter school anticipated receiving $825,000 from the Education Department as seed money “that was not forthcoming.”



“The record clearly establishes that Einstein is undercapitalized,” Shaffer wrote.



To begin cash flow, Einstein charged an $87 registration fee to some students who have enrolled in the school, “which may violate [Section 1725-A of the Charter School Law],” Shaffer said.



Further, the judge said, Einstein has billed school districts, including those in Butler County, for June and July 2001, even though the school has not provided any instruction. “Approximately $20,000 has been received from school districts.”



Shaffer also noted apparent deficits in Einstein’s teaching qualifications.



“Einstein also claims to have hired between 20-30 teachers, although signed contracts for only 13 were produced,” Shaffer wrote. “Only seven teachers have been determined to be certified. The Charter School Law required 75 percent certification.”

Morrisville School District

In November 2000, Einstein filed an application with the Morrisville School District to become a chartered cyber school. After its first meeting on the application, the school board did not make a decision.



Then, according to the opinion, the Superintendent of the Morrisville district, without school board authorization, entered into negotiations with representatives from Einstein to draft a charter school agreement. The finalized agreement was completed one hour prior to the next meeting of the school board, so “no members of the board of directors could have reviewed the agreement prior to the meeting,” Shaffer said.



The charter school agreement contained the following provisions:



* The requirements for term and form of charter, pursuant to the Charter School Law, 24 P.S. 17-1720-A.



* An agreement that Einstein will pay Morrisville, in return for “services,” $200 for each student enrolled at Einstein. Using Einstein’s figures for enrollment, Morrisville stands to receive $600,000 for the 2001-02 school year from Einstein, the judge said.



* An agreement that Einstein will lease space and custodial services from Morrisville for $35,000 per year. “To guarantee this cash stream, Einstein agreed not to seek a charter from any other school district,” Shaffer wrote.



After a two-day hearing, Shaffer concluded, “Einstein … appears to be in breach of its charter agreement with Morrisville.”

Preliminary Injunction