A slew of grand jury subpoenas have been issued for documents related to the purchase and financing of a building for Northwood Academy Charter School at 4621 Castor Ave. and for Philadelphia Academy's high school campus at 1700 Tomlinson Rd.
Gardiner, who founded Philadelphia Academy in 1999, opened Northwood in 2005 and at one time was chief executive of both charters. His contracts were terminated in April and May.
It's not clear what parts of the real estate deals federal investigators are focusing on.
But an Inquirer examination of documents shows that Gardiner and his associates created nonprofits they controlled to buy property from a local developer, borrowed money to renovate the buildings, and then refinanced the debt through a state tax-free program.
The result: allegedly lots of missing cash, at least $710,000, according to lawyers who investigated one of the school's finances. The cash reserves have also raised questions about whether Gardiner and others went too far using options allowed under state law.
Gardiner's attorney, Albert S. Dandridge III, declined to comment.
As the federal investigation continues, both charter schools are still operating, although the Philadelphia School Reform Commission required Philadelphia Academy to install a new board and new leadership, and to sever all ties with Gardiner and his associates. Northwood, on its own, is doing the same.
It is all part of the fallout from Inquirer disclosures in April that the school district's inspector general was investigating allegations of financial mismanagement, nepotism, and conflicts of interest at Philadelphia Academy, and that a web of charter and business entities enabled Gardiner and former chief executive officer Kevin M. O'Shea to earn more than most area superintendents.
