WASHINGTON (Map, News) - The District of Columbia has agreed to pay $1.75 million to head off a lawsuit alleging that the city bilked the federal government out of money to educate children who didn’t exist, The Examiner has learned.

For decades, District schools took in millions of dollars in grants to educate the children of migrant farmworkers and fishermen. But, as first reported by The Examiner in August, a 2005 audit discovered there were no such children in the system.

The federal Justice Department threatened to bring a False Claims Act lawsuit, which could have exposed D.C. to millions in damages. The False Claims Act allows victims to recoup up to triple the money, plus $11,000 in fines for each offense.

The settlement, which was still being worked out between the District and Justice, was expected to be announced early next month, D.C.’s acting Attorney General Peter Nickles told The Examiner Monday.

“There was a lot of exposure on the city’s part,” he said.  “It represents, I think, a successful negotiation with the Department of Justice.”

Nickles said that D.C. will sign the settlement without admitting fault. The settlement returns money for two years of grants and includes small penalties, Nickles said.

The settlement likely heads off any federal criminal investigation, sources said. The city has been getting the grants since 1980. The money was part of a set-aside program designed to provide special education and health services for the children of wandering farm and fishery workers as they trailed their parents from camp to camp. But the program was rarely audited. In 2005, D.C. school officials surveyed 333 families classified as migrants for the grant. Auditors couldn’t find 144 of them; the other 189 weren’t migrants.

Sources familiar with the dealings said the city was handicapped in its settlement negotiations by a turf battle between Nickles and then-Attorney General Linda Singer. The two lawyers each tried to negotiate with the government separately, sources said. The sources spoke on condition of anonymity because the negotiations were supposed to be secret.

Nickles, who forced Singer out and then replaced her, denied the sources’ account.

“The first time I got involved, as I recall, was when I became attorney general,” he said. “I know nothing about Singer’s activity. I just know about mine.”

Got a tip on D.C.’s schools or city government? Call Bill Myers at 202-459-4956 or e-mail bmyers@dcexaminer.com.

Comments from Examiner Readers

9:07 PM MST on Thu., May. 15, 2008 re: "District�s public schools to get record Teach for America participants"

Examiner Reader said:
The Teach for America teachers don't meet the highly qualified status required by No Child Left Behind.

Vote on this comment: I agree or I disagree

6:38 PM MST on Thu., May. 15, 2008 re: "D.C. schools hired consultant without valid contract in 2006"

Examiner Reader said:
A lot of the work StandardsWorks did involved copying the Social Studies Standards from California, and if I'm not mistaken the Math and Language Arts from Mass. Go ahead and Google the Social Studies standards. What did DCPS get for 300,000 and why did DCPS have to pay so much for what was publicly available?

Vote on this comment: I agree or I disagree

Report as inappropriate

4:56 AM MST on Thu., May. 15, 2008 re: "District�s public schools to get record Teach for America participants"

Examiner Reader said:
It is well-known that Rhee doesn't like the older, veteran DC teachers. She has always wanted to replace them with her younger crew of Teach For America young college girls. The same is true with principals.

3 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

10:00 PM MST on Wed., May. 14, 2008 re: "Pacts pursued for $58M to rehabilitate schools"

Examiner Reader said:
The real shame is the structure of these contracts. These are cost-plus contracts. No incentive to keep cost down and no one left that actually works for DCPS to watch the contractors. Consultants, contractors and lawyers having a field day! Here is our check book, have fun spending $28M in taxpayer money Turner.

1 agree | 0 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

5:08 PM MST on Wed., May. 14, 2008 re: "Scaled-back homeschooling rules still criticized"

Examiner Reader said:
The title of the article is misleading. To say the regulations were "scaled back" is a misinterpretation of what was removed. The mandatory immunizations, home visits and access to private medical records were UNCONSTITUTIONAL. How can that be considered "scaled back" when they were illegal to begin with? What IS accurate about the article is that this is all a result of the Banita Jacks case. A tragedy, no doubt, but NOT reflective of home schooling. The District already has laws that deal with educational neglect, which has CFSA as the responsible agency. To put a social issue (neglect) in the hands of the educational department is wrong. Bottom line: the District doesn't need more regulation of a program that is successful by any measure and is self-regulating. It DOES, however, need to better enforce and manage the laws it already has on the books. Don't make bad laws that will hinder the right of parents to do what is best for their children.

Vote on this comment: I agree or I disagree

Report as inappropriate

2:57 PM MST on Wed., May. 14, 2008 re: "Parents, teachers fight to keep principal"

Reader of the Examiner said:
To look back on this correctly...we had a principal remove due to fighting and assaulting a student. We had central office who were fighting and kicking to get the school back in to some sense and order. Yet, they were fighting to leave at the end of their term. We sat and paneled amongst each other and we discussed who we wanted and not wanted...and some might say actually fought for their selection. Now, we are back fighting to keep a principal... Well, one thing for sure we are consistent "Fight the Power!!!!"

Vote on this comment: I agree or I disagree

Report as inappropriate

1:16 PM MST on Tue., May. 13, 2008 re: "D.C. students plan walkout to protest closures, reform"

Reader of the Examiner said:
DCPS students walking out in actuality does what for whom? Apparently protesting is not what worth its wait...it seems that this group of 825'ers likes to spend time in people living rooms and chat and chew. Yet, be mindful the last living room chat that was viewed on youtube involved a cheerleader being pummeled. Now that would be a hoot...to see the chancellor on youtube defending herself and her views to a bunch of irate parents in a livingroom setting. For the life of me I don't understand this let me see them squirm attitude from the hierarchy...it is almost like they relish in this confusion of non-decision. I am telling you; when Rhee stands before you and speaks it is almost like experiencing the twilight zone.

2 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

4:20 AM MST on Wed., May. 7, 2008 re: "Charter board suspends two schools, citing special-ed issues"

Examiner Reader said:
Not only is City Lights PCS not reporting properly. They are violating the rights of students protected under IDEiA. Walk into City Lights folks and this is what you will see: student all over the place chillin and cuzzing. NOTHING going on in the classroom! Student sitting there with no children in sight. Uncertified and uneducated instructors. City Lights is a place for DC youth no one knows what to do with -- they are racking in federal dollars and providing no services. One of the things that amazes me in the district is the low expectation of it's people. Where is the leadership!!

Vote on this comment: I agree or I disagree

Report as inappropriate

10:37 AM MST on Thu., May. 1, 2008 re: "Norton seeking to end voucher program"

Examiner Reader said:
Parents still have to pay something if they send their children to private schools, therefore excluding children who truly need support. More often than not the children who are getting the voucher have involved parents and were doing well in public school.

2 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

6:29 AM MST on Tue., Apr. 29, 2008 re: "Teachers union VP files suit"

Examiner Reader said:
Just when you think things are progressing and change is happening, this crops up. Can't wait for the meeting today. Should be very entertaining.

4 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:33 PM MST on Mon., Apr. 28, 2008 re: "Parents, activists press D.C. Council on public school budget hearings"

Now you see it and now you don't said:
Is it pretty evident that what you want to see never materializes to the actual student. Is there any school that can say that every actual dime that they saw on a piece paper that was supposedly accessible...made it from paper to purchase. As long as the word called reprogramming is a word or action that is used in the fed and dc governments...then what you see is what you get...unless you blinked.

3 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

8:35 AM MST on Fri., Apr. 25, 2008 re: "Bush calls closing faith-based schools �crisis�"

Examiner Reader said:
I can't believe my bestfriend is all over the internet. Great job Aysia, St.Ann's is proud.=)

2 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

12:08 PM MST on Thu., Apr. 24, 2008 re: "Just 233 teachers have agreed to buyout days before deadline"

Examiner Reader said:
Do you want your children taught by the inexperienced missionaries from TFA and TNTP???The only measure of school performance is is a highly controversal TEST- that takes NOTHING into consideration - it measures -what a student does on one day - the results will be different the next day- an hour later etc. Parents can OPT out -they can not test your cild if you say no--

4 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

12:15 PM MST on Wed., Apr. 23, 2008 re: "Under-use of tutoring sessions gives D.C. schools hefty surplus"

Examiner Reader said:
This article is misleading. Though many more students are eligible for SES services, the District only had a little more than 3000 slots available. This number is determined by the amount of money allocated for SES divided by the total dollar amount awarded per student. The notion that the District is purposely neglecting to expend all available resources is an inaccurate suggestion. The real question is, "How many of the 3000 students selected have exhausted their funds for tutoring services?"

2 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:41 PM MST on Tue., Apr. 22, 2008 re: "D.C. to pay $1.75M to prevent lawsuit over alleged schools fraud"

Examiner Reader said:
To stop the D.C. Govt. corruption, the Federal Justice Dept. should file the False Claims Act lawsuit and make them pay for all the bogus grants since 1980. The taxpayers are being insulted with a settlement without admitting fault for tiny fraction of what they have taken from the public coffers ($1.75 million, ha-ha).

2 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

12:15 PM MST on Tue., Apr. 22, 2008 re: "D.C. schools offer teachers bonuses to retire early"

Examiner Reader said:
This won't rid the schools of good teachers- it will finally get rid of the deadweight!

2 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:33 PM MST on Thu., Apr. 17, 2008 re: "Officials propose extra $40 million to bolster public school programs"

Examiner Reader said:
If Rhee is going to contract out the High schools to private folks ....why do we need Rhee

30 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

4:56 PM MST on Wed., Apr. 16, 2008 re: "Chancellor adds pricey post to schools administration"

Frank Winstead said:
Jennifer Calloway comments that "Golden�s name on the ad document probably means he was the last one to look at it" shows an attitude of just say anything whether it is true or not. A Microsoft Word document tracks creators and modifiers and not readers. We need better educated liars at DCPS and not another expensive toady.

4 agree | 4 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:38 PM MST on Wed., Apr. 16, 2008 re: "Chancellor adds pricey post to schools administration"

Examiner Reader said:
This comes as no surprize...What happen to a CHIEF ACADEMIC OFFICER! This lady called Chancellor has again missed the boat. What about an "original" academic plan for DCPS. Chancellor's Rhee was to focus on academics now she going down another road?

25 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

8:56 AM MST on Fri., Apr. 11, 2008 re: "Charter schools miss deadline to repay city"

Examiner Reader said:
As global food and fuel supplies dwindle, look for home-schooling to grow. As the recession progresses, look for dropout numbers to rise as teenagers try to get employment to help the family meet its needs. There are school districts in Kansas have gone to a four day, 9 hour school week to save money. Over 2,000 foundations in 45 states that fund student loans have stopped accepting applications. It has been reported recently that Bush is planning to cut $80 billion this fall in student aid/loans. The US has dropped out of all international testing programs. Ask yourself WHY the government seems so determined to undermine the US educational system.

4 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

7:33 AM MST on Fri., Apr. 11, 2008 re: "Charter schools miss deadline to repay city"

Examiner Reader said:
This article about charter schools missing deadline serves no other purpose than to ding charter schools. Otherwise, it is vague and useless as a report.

2 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

4:17 AM MST on Fri., Apr. 11, 2008 re: "Charter schools miss deadline to repay city"

dc truth said:
The Examiner got the story totally wrong. Reading the finding, it state that he outstanding late payments total $148,000, related to 4 loans of $5 million. It does not state the $5 million was not returned. Great, and incompetent newspaper reporter reporting on DC, just what we need!

3 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

10:59 AM MST on Tue., Apr. 8, 2008 re: "D.C. says it won�t meet special-ed commitment"

Examiner Reader said:
The special Ed department has been an issue for quite some time and will continue to be! Especially the Transportation Department! Who is monitoring David Gilmore? Why does it take $72 million to run it? Why are so many of the driver's and attendants complaining about the way they are being treated and nobody is doing anything? Why has he not departed wasn't he supposed to have an exit strategy? Rumor has it that DCPS is planning on dumping the department onto the State Education Office. Hope Debora Gist is questioning the motive behind this move before she is blind sided by the mess that Gilmorekean is leaving behind for her to clean up! It is going to take an act of congress for her to get ride of all of the friends, family and housing personnel that Keith Pettigrew has hired. Not to mention all of the legal implications that Michelle Smith and him Keith Pettigrew are going to involve them in with all the unethical HR functions that they are doing! Good luck! You will need it!

3 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

6:31 AM MST on Mon., Apr. 7, 2008 re: "Prominent consultant to help D.C. cut special-ed backlog"

Examiner Reader said:
What about the Special Ed Transportation Department? The District probably would not have to come up with so much if they were not allowing David Gilmore and the rest of his housing buddies to steal so much money claiming that it takes 75 million dollars to run the Special Ed Transportation Division. Truthfully it probably could be run for a lot lest if he had the right staff in place. For example Two years ago Michelle Smith Terminal Manager for the New York Ave bus Terminal entered a guilty plea of second-degree insurance fraud for falsifying government time records, and was sentenced to 120 days of incarceration, two years of supervised probation and $6,500 in fines. The inspector general?s report from November 2005 about Smith states that the transportation division manager fraudulently received $6,500 for lost wages from State Farm Mutual Automobile Insurance Co. by falsifying District government time and attendance records in December 2002.

1 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

10:48 AM MST on Thu., Apr. 3, 2008 re: "Fenty proposal would cut public input on D.C. schools budget"

Examiner Reader said:
We see how well "the public" has managed the DCPS over the last 25 years. Management by committe doesn't work. More of the same? I don't think so.

2 agree | 4 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

5:37 AM MST on Thu., Apr. 3, 2008 re: "Schools enrollment drops by more than 5,500 kids"

A Reader said:
The fact that DCPS enrollment is quite lower than calculated is not surprising; lower income families have been deserting the public schools for charters, something upper income parents have done for years with sending their kids to private schools. The school system is losing kids due to out of control discipline as well as poor academics. But what is so troubling is that the central office can't seem to do a better job monitoring enrollment. Total incompetence across the board. As for Maryland students attending DC schools, it's a reality. They use relatives' addresses so that their DC-living family member can pick up the kid after school for child care until the parent, living in MD but working in DC, gets off. Local schools turn a blind eye to this deception, as their enrollment figures are low and they need students. And no tuition is paid.

2 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:55 AM MST on Wed., Apr. 2, 2008 re: "D.C. schools rank third in nation in per-pupil spending, census says"

Examiner Reader said:
Chancellor Rhee should have had all of her CENTRAL STAFF at Wilson SHS on Monday A.M. when the students arrived back after spring break to resolve the issues at Wilson SHS. The overall climate at Wilson SHS is deteriorating everyday. Where is the UNION and why do the teachers have to monitor students during their duty free lunch period? If Chancellor Rhee can't resolve Wilson's issues hat's going to happen at Eastern, Woodson, Anacostia, Coolidge,and the rest of our high schools? If we don't have a climate for teaching and learning hat's going to happen when we start the DC CAS spring testing? Again, Rhee and her inexperienced leadership team don't have a clue!

26 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

8:31 AM MST on Tue., Apr. 1, 2008 re: "Students launch lunch protest"

Examiner Reader said:
Until city leaders deal with these community issues we will still have an abundance of these types of incidents in the schools. Please believer that Wilson is not the only high school having issues. All of the heavily populated schools are having numerous incidents on a weekly basis. The transition of 17 and 18 year old 9th graders to the high schools was poorly planned. Resources must be devoted to these under-served communities and soon. We can't expect teachers and administrators to be miracle workers. Unfortunately Rhee and her team are not experienced in managing a large urban school district thus the issues we're having and her 2nd grade approach to resolving them.

12 agree | 1 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:25 PM MST on Mon., Mar. 31, 2008 re: "DCPS scraps special-ed database after spending millions on system"

Examiner Reader said:
I really don't understand why they keep hiring people (who are not educators) to run systems such as the SPED dept. Now what....we have to learn a whole new system and deal with the quirks of that system then 5 years later they will scrap that one too. I am a SPED teacher in DCPS (Ballou SHS) and I am soooooo tired of people coking in making decisions that are not based on the needs of the students we serve. Focusing on getting us a curriculum and books to work with to make strides in achievement is what I need. We are suppose to be the nations capital but yet we fail when compared to neighboring school systems. This system is losing all of the experienced folks and getting these Teach For America teachers who only care about serving their two years and getting out. How does that benefit our children? What will this system become? Will we ever be voted one of the best? Yeah maybe after they close all the public schools and privatize everything like they are doing now..disgusti

2 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

2:29 PM MST on Wed., Mar. 26, 2008 re: "Washington to spend $110 million repairing, closing school buildings"

Examiner Reader said:
I agree with the previous reader. When are we going to give Chancellor Rhee and her inexperienced team their letters of dismissal from the DCPS school system?

33 agree | 4 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

6:15 AM MST on Tue., Mar. 25, 2008 re: "Fenty proposal would cut public input on D.C. schools budget"

Examiner Reader said:
I agree with the Mayor. DC schools have been in disarray for far to long. New changes are needed.

7 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

5:00 AM MST on Tue., Mar. 25, 2008 re: "Fenty proposal would cut public input on D.C. schools budget"

Examiner Reader said:
Mary Levi siad �no other government department has total control over your children for seven hours a day.� Not true. Child and Family Services has some 2000 children in its care 24 hours a day, 7 days a week. Youth Services also has full custody of many youth. I have concern about all three agencies, but fail to see why schools should be treated differently. We have plenty of opportunity at City Council to voice our concerns.

3 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

7:03 AM MST on Tue., Mar. 18, 2008 re: "Officials propose extra $40 million to bolster public school programs"

A teacher said:
It is well-known that Rhee doesn't like the older, veteran DC teachers. She has always wanted to replace them with her younger crew of Teach For America young college girls. But the teachers have a union and can't just get a pink slip and be fired, like what was done to central office personnel. Rhee's plan for teachers is to buy out the old ones and put in her new white girls. trouble is, they can't manage the children and don't last in their jobs. It takes the old-school experienced teachers, the very ones that Rhee want to buy out.

18 agree | 10 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

6:24 AM MST on Tue., Mar. 18, 2008 re: "Officials propose extra $40 million to bolster public school programs"

Examiner Reader said:
I hear that there may be money available for a buy out for older DC teachers.In that way, they will get an early retirement and leave the system. This was done for other DC government workers nearing retirement age, to make way for younger, more energetic workers.

7 agree | 2 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

10:27 AM MST on Mon., Mar. 17, 2008 re: "Violence at D.C.�s Wilson High �significant issue� to chancellor"

Examiner Reader said:
Wilson High used to be a fine school. Instead of working to have fine schools in all neighborhoods, the powers that be decided to bring kids from other parts of the city to Wilson. That's when the trouble started. Busing (or Metro-ing) has always been a bad idea. You can't turn a neighborhood school into a mega school serving the whole city and then be surprised when crime overcomes education.

5 agree | 4 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

8:42 AM MST on Mon., Mar. 17, 2008 re: "Violence at D.C.�s Wilson High �significant issue� to chancellor"

Examiner Reader said:
The issue is...There are a number of security guards at the school. They are lazy and do not do their jobs.

4 agree | 5 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

6:24 AM MST on Mon., Mar. 17, 2008 re: "Violence at D.C.�s Wilson High �significant issue� to chancellor"

Examiner Reader said:
Why would anyone in their right mind send their kids to Wilson? It used to be a decent school, but it's getting more and more ghetto every day. It's dangerous because the junior thug in training young criminals seem to run the place instead of the teachers, who are intimidated, and the so-called leaders, who aren't leading. If my kids were there, i'd move them out in a heartbeat.

10 agree | 4 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

5:02 AM MST on Mon., Mar. 17, 2008 re: "Violence at D.C.�s Wilson High �significant issue� to chancellor"

Examiner Reader said:
Why on Earth haven't these parents followed Dawn and staged a walkout? If the parents refuse to send the kids to school for safety issues it may force the school to do something about it. Not to mention it will draw the attention of people higher in government. And with their help a lot more can be done.

4 agree | 3 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

9:45 AM MST on Fri., Mar. 14, 2008 re: "Parents work to ensure future of neighborhood school"

Examiner Reader said:
I'm confused, the NCLB site states that Ludlow-Taylor did make AYP in both math and reading in 2007. Can someone from the Examiner staff clarify?

13 agree | 10 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

10:29 AM MST on Sun., Mar. 2, 2008 re: "Washington to spend $110 million repairing, closing school buildings"

Examiner Reader said:
Rhee is asking that we spend more than $110 million this spring for the consolidation of schools, reducing central administration, fixing the athletic fields what about student achievement? I thought that was Chancellor Rhee's charge, to make this school system a world class school system for the students of DC. I have heard nothing about AYP or student achievement.

65 agree | 58 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

6:39 PM MST on Wed., Feb. 27, 2008 re: "Prominent consultant to help D.C. cut special-ed backlog"

Examiner Reader said:
We keep talking, talking, talking and spending, spending, spending. DCPS is not serving the majority of their disabled student population -- period. Visit Spingard, where it reaps of weed and the majority of sped kids are in the halls � chilling. Visit Dunbar where � well they only have 6 sped teachers and at any given time they don�t know what child is in the building, whether federally mandated service are being provided or even if children are suppose to get services. Falsification of records is the norm in DCPS sped. A principal asking you to lie and/or look the other way at blatant violations of students rights is commonplace. What is Klemm going to do? What were Fenty and Rhee thinking? Part of the problem is that �they don�t� represent the majority of DC citizens. They think they can do this sped thing without the support and abilities of the black community. Shame on you Fenty � we all did not go to elite schools � but some of us care enough to do this job - one way or another.

66 agree | 48 disagree
Vote on this comment: I agree or I disagree

Report as inappropriate

1:06 PM MST on Wed., Feb. 27, 2008 re: "Prominent consultant to help D.C. cut special-ed backlog"

Examiner Reader said:
What about the Special Ed Transportation Department? The District probably would not have to come up with so much if they were not allowing David Gilmore and the rest of his housing buddies to steal so much money claiming that it takes 75 million dollars to run the Special Ed Transportation Division. Truthfully it probably could be run for a lot lest if he had the right staff in place. For example Two years ago Michelle Smith Terminal Manager for the New York Ave bus Terminal entered a guilty plea of second-degree insurance fraud for falsifying government time records, and was sentenced to 120