Former Epic Charter Schools CFO Testifies In Week-Long Preliminary Hearings

The founders of Epic Charter Schools returned to the courtroom on Friday for preliminary hearings.

The two founders and the school's Chief Financial Officer face 15 counts of criminal charges for allegedly taking money meant for education.

Related Coverage:

1. Testimony Continues In Day 4 Of Preliminary Hearings For Epic Charter School Founders
2. Epic Charter Schools’ Co-Founders In Court For Preliminary Hearing In Embezzlement Case
3. Epic Charter School Founders Appear In Court For Embezzlement, Racketeering
4. Attorney General Gentner Drummond Reopens Investigation Into Epic Charter Schools

The former Epic CFO Josh Brock took the stand as part of a plea deal he made with the state Attorney General's Office. Brock admitted to personally profiting in the millions from state and federal dollars.

Who is Josh Brock? What did he share in his testimony?

Brock was hired by David Chaney and Ben Harris in 2011 to be Epic Charter School and Epic Youth Services' CFO. He was a contract employee and made a yearly salary along with receiving regular performance bonuses and profit sharing. Brock testified that he, Chaney, and Harris made millions of dollars at the peak of Epic student enrollment in 2021.

Brock's testimony included knowledge that payments meant for education were funneled to him and the founders through fraudulent practices and even called the business "void of internal control." Brock claimed he did not act alone, and that Chaney and Harris were aware of all business matters and arrangements. Brock's role as CFO ended in 2021 after the state's audit into Epic was released.

Brock testified that taxpayer money paid for the trio's personal driver and security services. Prosecutors revealed one of the ways the men allegedly hid money from the state was through invoices for food services, but all students were online.

Brock's plea offer from the AG's office includes 15 years probation with a suspended sentence and restitution payments. The amount of those payments is to be determined.

What happened in court on Thursday?

A state forensic auditor spent the day in testimony.

Prosecutors questioned the witness on how David Chaney, Ben Harris, and Brock allegedly funneled $56.5 million in public funding to themselves.

State forensic auditors started looking into payments made to Epic founders in 2019. The Oklahoma State Bureau of Investigation opened a criminal investigation a year later based on the findings of the audit.

The auditor testified the men were taking a 10 percent management fee from different shell companies that changed names over the years. The witness said there was false invoicing, and she had no idea what the management fee was used for other than to pay the founders.

The defense argued that politics played a part in the audit because Chaney, Harris, and Brock were donating to State Auditor Cindy Byrd's opponent in the 2022 election. The attorney pointed out his client Harris was arrested five days prior to the election.

The defense also brought up Epic's independent audits that have been done each year since 2013 and the state did not send Epic any deficiencies during that time. 

The forensic auditor told the defense attorney the two audits were like comparing apples to oranges. In the end, the state audit found the millions of dollars in question were public dollars and not private.

After the state and defense rest, the judge will decide if Harris and Chaney will be bound over for trial.