Settlement reached in California lawsuit alleging fraud by former EPISD superintendent, former board president
EL PASO, Texas – Former El Paso Independent School District Superintendent Juan Cabrera and former Board President Dori Fenenbock have settled a California lawsuit that accused them of fraud related to a Texas online charter school named eSchool.
They denied any wrongdoing.
To build eSchool, the lawsuit alleged, Cabrera and Fenenbock reached out to two California men, Sean McManus and Jason Schrock, who have since been convicted in a massive fraud scheme against the state of California. Their case "has been labeled one of the nation’s largest fraud schemes after taxpayers were fleeced out of $400 million meant for K-12 education," according to the San Diego Tribune.
"We found no evidence that Dori Fenenbock and/or Juan Cabrera engaged in any fraud or that eSchool knowingly received investment funds wrongfully obtained by Sean McManus and Jason Schrock, who pled guilty in a criminal action in the San Diego County Superior Court," read a statement from William Robert Ayres, a receiver appointed by the State of California. Ayres' predecessor filed the lawsuit against Fenenbock and Cabrera in September 2020.
Cabrera's voluntary separation from EPISD in November 2020 came amid the lawsuit.
The terms of the settlement were not disclosed, but under the resolution, Ayres will receive cash and an ownership interest in eSchool.
“We are excited about this resolution, the opportunity to continue to pursue a 'best in class' virtual school in Texas and to be part of the recovery for the victims of the crimes committed in California,” said Dori Fenenbock, CEO and Founder of eSchool, Inc. on a statement.
Cabrera described his role in the school as an unpaid academic advisor working for Fenenbock as a friend.
"While it was personally devastating to be involved in this litigation, I am pleased to be relieved from the burden of this case,” said Cabrera's statement. “I am excited to have our name cleared and return to our passion which is creating innovative programs and initiatives in support of all students.”
