California Charter School Officials Settle SEC Bond Fraud Case

The U.S. Securities and Exchange Commission settled charges with two California charter school officials who allegedly sold bonds without disclosing the financial distress facing the operating company.

William Batchelor and John Zukoski, the school’s chief executive and director of finance, misled investors in May 2015 by selling $25.5 million in bonds without disclosing that the Tri-Valley Learning Corp. had cash flow problems, overdue loans and had already maxed out a line of credit prior to the sale, according to the SEC. The school operator was selling bonds to finance the purchase and renovation of a building to house the ...