Pa. ethics panel says it didn't have evidence to prove violations by former charter school head

The State Ethics Commission did not have the evidence to prove that the former head of the Multi-Cultural Academy Charter School in North Philadelphia violated state ethics laws, according to an investigative report that nevertheless describes Vuong Thuy's business dealings as "disturbing."

After a two-year investigation into allegations of conflicts of interest, the commission said it lacked "clear and convincing proof" that Thuy, Multi-Cultural's founder and former chief executive officer, broke the law when the charter school rented properties owned by him, his wife, Maria, and a nonprofit organization he cofounded.

Thuy and his wife received a "substantial" financial benefit from the lease arrangement, concluded the Ethics Commission's 42-page report, obtained by The Inquirer.

Recent controversy over Thuy's management has cast a cloud over the charter high school, which has won accolades for its academics.

The ethics commission found that the president of the Multi-Cultural board, Tae-Ock Kauh, approved the lease even though the full board did not vote.

"We may not find violations of the Ethics Act based upon the appearance of impropriety," the report said.

The document - including the commission's final order - is not expected to be made public until a 30-day appeal period ends Aug. 14.

Robin M. Hittie, chief counsel of the state commission, declined to discuss the case, as did Thuy's attorney, Drew S. Dorfman.

Charter school CEOs are covered by state ethics law because they are public officials. The law bars them from engaging in conflicts of interest, including doing business with the schools they lead.

Thuy's mounting legal bills for the ethics probe, and a separate federal investigation, were factors that led staff and parents to seek his ouster this spring.

Multi-Cultural is one of 19 local charters being investigated by federal authorities for several reasons, including conflicts of interest and fraud, according to sources with knowledge of the probes.

According to the charter's most recent tax filing, Thuy was paid $206,342 by Multi-Cultural for the year ended June 30, 2009, and an additional $69,550 that year for serving as executive director of the Indochinese-American Council. Thuy cofounded the council, which also employs his wife and owns Multi-Cultural's current building at 3821-23 N. Broad St.