Croft School in Boston, Providence R.I. possibly closing after founder allegedly hid $13 million in debt
The Croft School in Boston and Providence could close after the founder, Scott Given, allegedly concealed $13 million in debt for years.
In a letter sent from the school's board to the community, they allege that Given called a board member on March 6 and told them he had mismanaged and misrepresented the school's finances for the last several years, keeping two books. The board said they had only gained access to the finances last week and learned that the debt is $13 million.
A spokesperson for the school said it will be open for classes on Monday. But parents said that they were told that the for-profit elementary school could close on March 27.
"The doors of a school are closing two months before the end of the year," said Nicky Bandera. "Where are these kids gonna go?"
Parents said they have been encouraged to fundraise for the school despite already paying tuition, which ranges from $31,690 to $37,690. They also explained that several families receive partial or full tuition. The board estimates it would take $5 million in cash to cover payroll till the end of the school year.
"We're going to fight as hard as we can, and if that means us raising the money ourselves, we'll do it," parent Tim Cummings said.
Parents said they want to ensure their kids stay in a stable learning environment. They praised the Croft School for the tight-knit community, diversity, and teachers.
Boston Public Schools said they will absorb any Croft School students living in the city.
"Boston Public Schools (BPS) has a legal and moral obligation to provide children living in the City of Boston with a high-quality, free, and public education," BPS said in a statement.
The Croft School is also being sued by a commercial landlord who alleges that Given provided them with a forged letter of credit for $500,000 in the hopes of expanding into the Foodie's Market location in the South End. The school allegedly backed out of the lease.
CBS News Boston has reached out to Given and his attorneys, but has not heard back.