Former charter staffers plead guilty in federal court

Two former charter school administrators pleaded guilty this morning in U.S. District Court to charges of conspiracy and altering documents in 2006 to cover up their use of taxpayer money on personal items, including restaurant meals, travel and alcohol.

Martha Russell, the founder and former chief executive officer of the Raising Horizons Quest Charter School, and her sister, Viola Bush, the charter's former finance officer, were indicted by a federal grand jury in April of falsifying credit-card statements to obstruct a Philadelphia School District audit of the school's operations.

The district's inspector general launched an investigation and ordered the audit after former employees alleged that public funds were being misused at the charter elementary school, which has campuses in Northeast and West Philadelphia.

When the district's inspector general discovered evidence of wrongdoing, the district asked officials at the U.S. Department of Education to investigate.

The school--now known as the Global Leadership Academy--receives more than $100,000 a year in federal funds each year.

In June 2006, the district forced all the charter's board members to resign, along with Russell and Bush. A new administrative team was brought in to take over management of the school which currently has 525 students.

The grand jury charged that Russell and Bush took billing statements to Russell's home in Blue Bell and altered them by removing personal expenses and inserting "purported charges for business-related expenses," the indictments said.

Russell then faxed the doctored documents to a coworker at the charter school "and instructed her to obscure the fax line on the altered statements and provide them to the Philadelphia School District auditor," the grand jury said.

Russell, 53, and Bush, 50, of Lansdale had initially pleaded not guilty to the felony charges.

But in a hearing this morning before U.S. District Judge Petrese B. Tucker the women changed their pleas and admitted they had committed the crimes.

Assistant U.S. Attorney Michelle Morgan-Kelly said the evidence showed that the women had misused more than $14,000 .

As part of their plea agreement, Russell and Bush jointly agreed to return $23,021. Bush also promised to give back an additional $1,262.

The women face a possible maximum sentence of 25 years in prison, although federal sentencing guidelines call for a range of 10 to 16 months. They also face three years of supervision and $500,000 fines.

They are scheduled to be sentenced Jan. 26.

Both Russell and Bush declined to comment after the hearing.