Epic Charter Schools Founders Face Trial as Judge Dismisses Key Defense on Public Funds

Key facts

• David Chaney and Ben Harris face 14 felony counts each under Oklahoma's racketeering statute.
• Prosecutors allege the founders diverted tens of millions of dollars from student education funds.
• Judge Jason Glidewell dismissed one embezzlement count against both and one computer fraud count against Chaney.
• The trio split $55 million in management fees: Harris $25 million, Chaney $23 million, Brock $7 million.
• Epic Youth Services collected more than $69.3 million in management fees between 2013 and 2021.
• A formal arraignment is scheduled for June 24.
• The state auditor called the scheme the largest abuse of taxpayer dollars in Oklahoma history.

Lede: A Ruling That Reshapes the Case

Nearly four years after their arrests, the founders of Epic Charter Schools face a pivotal legal reckoning after an Oklahoma judge rejected their central defense that public funds became private once deposited into their business accounts. Oklahoma County Special Judge Jason Glidewell concluded that prosecutors presented sufficient evidence for nearly all charges against David Chaney, 47, and Ben Harris, 50, to proceed to trial. The ruling clears the way for a formal arraignment scheduled for June 24.

The Charges: Racketeering, Embezzlement, and Fraud

Prosecutors charged Chaney and Harris in 2022 with 14 felonies each under the state's racketeering statute, alleging they diverted tens of millions of dollars intended for students' education into their private companies. The charges include embezzlement, conspiracy, and fraud. On Thursday, Judge Glidewell dismissed one count of embezzlement against both defendants and one count of computer fraud against Chaney, but found probable cause for the remaining charges.

The Defense: Public Funds or Private Property?

The defendants' attorneys argued that public funds became private once deposited into Epic Youth Services' business accounts, a claim Judge Glidewell said he did not find persuasive. 'The money remains public until its purpose is fulfilled,' he ruled. The state auditor, whose 2020 audit triggered the criminal charges, described the scheme as the largest abuse of taxpayer dollars in Oklahoma history. Chaney and Harris deny wrongdoing.

The Evidence: Millions in Fees and Shell Companies

Over eight days of testimony, the court heard from the Oklahoma State Bureau of Investigation, Epic staff, state auditors, and the state's star witness, Josh Brock, the company's longtime chief financial officer. Brock, who is also charged but cooperating to avoid prison, testified that he received a 10% cut of Epic Youth Services' profits while Chaney and Harris kept 45% each. Prosecutors' review of bank accounts revealed the company collected more than $69.3 million in management fees between 2013 and 2021. Of that, the trio split $55 million: Harris made $25 million, Chaney $23 million, and Brock $7 million.

The Scheme: Unspent Student Funds and False Invoices

Epic Youth Services controlled the school's student learning fund, an account set aside for laptops, extracurricular activities, and other expenses. Investigators said the company kept unspent funds instead of returning them to the school. Brock described how the men used shell companies and submitted false invoices based on estimates rather than actual costs to conceal their profits from the state. Prosecutors allege they spent public money on political donations, expenses for a California charter school, and personal credit card charges for Chaney and Brock.

Procedural Delays and the Path Forward

The criminal case has been plagued by procedural delays. Thursday's hearing began in 2024 but stalled after attorneys sought to remove the trial judge. Multiple courts rejected the effort, but the judge stepped down anyway. With probable cause established for nearly all charges, the case now moves to formal arraignment on June 24, where Chaney and Harris will enter pleas. The trial is expected to be one of the most significant public corruption cases in Oklahoma history.

The bottom line

• Judge Glidewell's ruling that public funds remain public even in private accounts sets a key legal precedent.
• The case involves over $69 million in management fees, with $55 million split among three executives.
• Prosecutors allege the founders used shell companies and false invoices to conceal profits.
• The state auditor called it the largest abuse of taxpayer dollars in Oklahoma history.
• A formal arraignment is set for June 24, with trial likely to follow.