Magnolia Science Academy, how to get awarded $6 million in bonds 4 days after closure notice?

Why High-Yield – The Untold Story of a California Charter School Bond Issue

Charter schools form a growing and lucrative part of the municipal finance landscape. As we learned recently, charter school bonds can have stories beyond those told in their offering documents.  Here is one uncovered by Bitvore for Munis.
Last month, the California School Finance Authority issued $6.02 million in bonds for the benefit of Magnolia Science Academy in Reseda, California.  The Academy is one of a dozen schools operated by Magnolia Educational and Research Foundation, a not-for-profit charter school operator. Magnolia is using the bond proceeds to purchase and upgrade the facility in which the Science Academy currently operates. Because charter schools are tuition-free, the debt will be serviced primarily from aid payments received from the State of California and the Los Angeles Unified School District in which it operates.
The BB-rated bonds pay generous coupons ranging from 5.25% to 7.00%. The school has been operating since 2002 and is virtually full, suggesting a relatively secure source of repayment. Bondholders should be fine as long as LAUSD continues to renew the school’s charter, which is next up for renewal in 2017.
Shortly after the bonds were issued, this benign scenario took a major hit – as Bitvore users recently learned. A local education news site reported that LAUSD shut down two other Magnolia schools. According to the report, the district decided to close the schools after receiving the results of an audit from its Inspector General. If two Magnolia charters in LAUSD have financial irregularities, it is reasonable to wonder whether others – including the Reseda-based Science Academy – have similar issues.
Another challenge for Magnolia is its association with the Turkish Islamic Gulen movement. Reports on 60 Minutes and elsewhere have featured accusations that Gulen-linked charter schools rake off public funds by obtaining visas for Turkish immigrant teachers and then requiring these teachers to kick back a percentage of their salaries.
The internet holds an incredible wealth of information and some of it may impact the value of your bonds. Finding that information and linking it to bonds you hold or are considering buying is the job of Bitvore.
http://bitvore.com/2014/07/why-high-yield-the-untold-story-of-a-california-charter-school-bond-issue/



$6 million in California School Finance Authority School Facility Revenue Bonds
issued on 7/1 /2014  4 days after LAUSD issued an official letter that Magnolia #6 and 7
would not be renewed.

 

 

Within a few days the Magnolia School web site is boasting about a new schools but notice the

name on the school is under Pacific Technology not "Magnolia Schools" which is Where the

money was granted.

 

 



 Learn how Accord Institute is connected to Faruk Taban and
Turkish Lobbying http://gulenpoliticians.blogspot.com/2014/09/the-gulen-boys-are-at-it-againthis-time.html

 

Magnolia Science Academy- California State Auditor launches extensive investigation

This is from Educational GURU Diane Ravitch's blog http://dianeravitch.net/2014/08/15/california-investigating-magnolia-charter-schools/

Another scoop by KPCC’s Annie Gilbertson. The California State Auditor is investigating four of the state’s 11 Magnolia Science Academies, part of the Gulen charter chain.
“After sampling transactions from Magnolia campuses in 2012, L.A. Unified found over $43,000 in duplicate payments to vendors, flagging those as potential misuse of funds.
“The Los Angeles Unified school board ordered a second audit in 2014, voting to close two of the schools if any fiscal problems arose.
“The audit, which the district is calling a “forensic review,” revealed that schools sent $2.8 million to the network’s management organization. The funds were poorly documented loans, and much of the cash was never paid back to classrooms, according to L.A. Unified.
“District auditors found the management organization met the definition of insolvent, operating on a $1.7 million deficit.
“Magnolia refutes much of the findings.”

LEARN HERE HOW ACCORD INSTITUTE IS RELATED TO FARUK TABAN AND TURKISH
LOBBYING
http://gulenpoliticians.blogspot.com/2014/09/the-gulen-boys-are-at-it-againthis-time.html

Mehmet Argin formerly of Paragon Science Academy now Magnolia Science Academy CEO "No Organic Ties" REALLY?

Mehmet Argin is a loyal Gulen Follower and will go anywhere to grow the share
of power for the Gulen Movement. 

MEHMET ARGIN, WE CHALLENGE YOU TO STOP
LYING ABOUT THE CHARTER SCHOOLS AFFILIATED
WITH EXILED IMAM FETHULLAH GULEN

2010 USA Today Article "Objectives of charter schools with Turkish ties questioned"
 http://usatoday30.usatoday.com/news/education/2010-08-17-turkishfinal17_CV_N.htm

in this article Argin is quoted:

that Daisy Education Corporation "has no legal or organic ties" with other schools.  He cautions against linking charter schools founded by Turkish-Americans directly to the Gulen Movement "just because Turkish Americans may be inspired by Mr. Gulen"
Quote by Mehmet Argin

4 years ago 2010 Mehmet Argin was with the Sonoran Science Academies /Paragon Science in Arizona.  He made a statement that none of these schools opened by Turkish Americans have "organic ties".  Mehmet Argin even put out the usual Gulen endorsement of Paragon Science Academy.

 

Fast forward to 2014 Mehmet is now in California working as the CEO Superintendent of the Gulen-Inspired operation Magnolia Science Academy.  Here is his glowing endorsement of the California schools.  If you compare with the Paragon video above you will hear the same words.

Now for the other Gulen Liar- Mr. Umit (Matt) Yapanel, who is currently the Superintendent of the

California Schools.  Matt (Umit) was formerly the Principal in Colorado of the Gulen "inspired" school Lotus School of Excellence.  Matt failed to get an expansion in CO, because of poor scores and hired an attorney to take his case to the state board of education EPIC FAILED. (does that story sound familiar California People?)

http://gulencharterschoolsusa.blogspot.com/2010/11/matt-yapanel-lotus-school-for.html

 

SOMEONE IS TELLING A FIB

From Colorado to Arizona to California

These are all connected and part of the Gulen Movement

 

 

Paragon Science academy in Chandler, AZ where Mehmet Argin CEO of Magnolia Schools came from

American Students dancing and learning Turkish culture on American taxpayer's dime

This is Mehmet Argin's old school.  Mehmet Argin is currently CEO of Magnolia Schools

Magnolia Science Academy Elton San Juan performs at Turkish Olympiad

My cousin, Elton Sanjuan performing a Turkish poem at the 6th Turkish National Olympiad in Long Beach,CA . Has been 1st place from his school, then 1st place from Los Angeles and once again 1st place of California. Made it to the Top 5 and after this great perfomance, he was able to take 4th place home. Good job, primo.
.
School: Magnolia #8 Middle School
Teacher: Mr. Veli

Magnolia Science Academy closes one school, opens another 16 miles away

Magnolia Public Schools aka Magnolia Science Academies aka Magnolia STEM Schools moved from one location to another 16 miles away. In doing this, they abandoned the families that went to the old school and LIED to the new community they went to by saying "it was a new school"