The statute of limitations to collect on a finding for recovery to a local government is six years, said Dan Tierney, a spokesman for the Ohio Attorney General’s Office. Filing a lawsuit extends the period of time the funds can be collected.
“This is a common practice we do in order to secure findings for recovery and try and recoup those funds to the public entity it should be returned to,” Tierney said.
Franklin Carter, along with other officials with Urban Management, could not be reached for comment. Carter’s license expired in 2011, and there are no indications he is currently working in a school district in Ohio, according to information from the Ohio Department of Education.
The state’s lawsuit points to a finding from the Ohio Auditor’s Office that sought about $158,000 from Carter due to his involvement in improper payments to UMD during his time as treasurer. None of that has been repaid, and Carter now owes about $194,000 including fees and interest, according to the lawsuit. UMD, the management company, also owes $202,000, according to the lawsuit.
Urban Youth Academy closed abruptly in May 2008 after site visits from the charter’s sponsor provoked concerns over student safety, enrollment and educational programs. An audit after the school closed revealed that poor record keeping and missing records resulted in more than $241,000 in undocumented expenditures.