Stolen funds are being put back where they belong: supporting students.
February 1, 2026 – San Diego County District Attorney’s Office officials report that after successfully prosecuting the landmark A3 Charter Schools fraud case, the San Diego County District Attorney’s Office recovered more than $280 million in stolen education funds. In sentencing, the judge ordered that the recovered money be distributed to benefit the public—directing portions to the County of San Diego, to K–12 student victims, and to the State of California—and made clear that funds designated for students must be used exclusively for programs that directly support K–12 education.
As a result, a Charter School Fraud Trust Fund was established, and the DA’s Office was authorized by the County Board of Supervisors to administer grants that return stolen dollars to students and families. The DA’s Office has now awarded $25 million from that trust fund to the San Diego County Office of Education (SDCOE) to implement HeartSpire, a seven-year, countywide initiative that brings together schools, county services, and community partners to expand mental health, safety, wellness, and educational supports for K–12 students across San Diego County—turning accountability into real, lasting impact.
“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,” said DA Summer Stephan. “I continue to be very proud of our public corruption/consumer protection expert prosecution team that delivered justice in the A3 Charter Schools criminal case and now, we’re seeing how the trust fund established as a result of the case is impacting the community in positive ways, funneling the money stolen by the defendants back to deserving young people in our schools.”
View news conference here: DA Announces $25 Million Investment to Support K-12 Students: Money Recovered in Educational Fraud Case. Funds Come from Charter School Fraud Trust Fund.
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EN ESPAÑOL: Fondos Robados Regresan para Apoyar a Estudiantes: https://danewscenter.com/?p=9693
Source & photo: San Diego County District Attorney’s Office