C. Steven Cox founded the California Charter Academy in 1999 and the school had grown to some 60 campuses with 10,000 students before collapsing in 2004 amid allegations of financial improprieties. A state audit of the shcool and its affiliated entities found that more than $25 million had been misspent by administrators. While company reps insist that the most recent audit was full of wild speculation - and to be fair, the school had received a clean bill of health in prior audits - the FBI is not so sure.

More on the story, here, via the San Bernadino County Sun. And for further background, here's a September 2004 New York Times article (hosted at Corpwatch.org) regarding the CCA's initial collapse.

-- MDT