Nearly four years after David Chaney and Ben Harris were arrested, an Oklahoma judge on Thursday moved forward the criminal case accusing the Epic Charter Schools founders of stealing funds meant for students, rejecting arguments from their attorneys at a hearing that lasted more than a week.
Oklahoma County Special Judge Jason Glidewell concluded that prosecutors presented enough evidence for nearly all of the charges against Chaney, 47, and Harris, 50, to proceed to trial. Glidewell dismissed one count of embezzlement against both men and dismissed one count of computer fraud against Chaney, while finding probable cause for the remaining allegations.
Prosecutors charged Chaney and Harris in 2022 with 14 felonies each, alleging that during their management of the online school they diverted tens of millions of dollars meant for students’ education into private companies. The felony counts, prosecutors said, include racketeering charges under Oklahoma law tied to embezzlement, conspiracy and fraud.
At Thursday’s hearing, Glidewell addressed the defense’s central argument that public money became private once it was deposited into the founders’ business accounts. Glidewell said he did not find that reasoning persuasive, adding that the money remained public until its purpose was fulfilled.
A formal arraignment is scheduled for June 24, setting a date for the next step after the judge’s probable-cause ruling. The case has been slowed by procedural fights, including an attempt—spanning multiple courts—to remove the trial judge, which later stepped down anyway.
Over eight days, the judge heard testimony from the Oklahoma State Bureau of Investigation, Epic staff, state auditors, and a longtime chief financial officer, Josh Brock, described in the case as a key witness. Brock, who is also charged in the multimillion-dollar case, testified while cooperating with prosecutors to avoid prison.
According to prosecutors’ account, Brock managed the books of Epic Youth Services, the private management company connected to the charter school, and served as encumbrance clerk for the school. Brock told the court he received a 10% cut of Epic Youth Services’ profits, while Chaney and Harris each received 45%.
Prosecutors also said they reviewed the school’s bank accounts and found the company collected more than $69.3 million in management fees between 2013 and 2021, and that the three split $55 million. Prosecutors’ allegations described Harris receiving $25 million, Chaney receiving $23 million, and Brock receiving $7 million from that amount.
The prosecution further said Epic Youth Services controlled a student learning fund—an account set aside for items such as laptops and extracurricular activities—and that investigators found unspent funds were kept by Epic Youth Services rather than returned to the school. Brock described, and prosecutors said, that the defendants used shell companies and submitted false invoices based on estimates rather than actual costs to conceal profits from the state.
Prosecutors told the court that the scheme included spending public money meant to educate students on political donations, paying for expenses tied to a California charter school, and charging personal expenses on a Chaney credit card. They also said an Internal Revenue Service investigation into the matter is ongoing.
Epic cut ties with Chaney, Harris and Brock in 2021, and the state auditor whose 2020 audit helped trigger the criminal case called the alleged scheme the largest abuse of taxpayer dollars in Oklahoma history. Chaney and Harris deny wrongdoing.