Franklin Towne Charter High School in Philadelphia and its former CEO have agreed to pay nearly $4 million to resolve federal claims that the school discriminated against Black applicants during its admissions process. The Franklin Towne settlement comes amid renewed questions about federal civil rights enforcement in schools and charter school oversight.
The Justice Department announced Friday that the charter school and its former CEO, Joseph Venditti, will separately pay a combined $3.9M to resolve allegations that they violated the False Claims Act by discriminating against Black applicants during a January 2023 admissions lottery.
Federal officials contend that the school, acting through or at the direction of Venditti, manipulated what was supposed to be a random lottery to reduce the chances that Black applicants would be admitted. Franklin Towne was receiving federal education grant funding at the time.
Title VI of the Civil Rights Act of 1964 prohibits schools receiving federal financial assistance from discriminating on the basis of race, color or national origin.
Under the agreements, Franklin Towne will pay $3,639,328.77, while Venditti will pay $275,000. The Justice Department said both amounts were based on analyses of the defendants’ ability to pay.
The department also acknowledged that Franklin Towne has made significant changes to its governance since the admissions controversy. Those changes include replacing its CEO and hiring an independent third party to conduct all future admissions lotteries.
U.S. Attorney David Metcalf said schools that accept federal grant money cannot select or exclude students because of their race. Jamila Davis, special agent in charge of the Education Department Office of Inspector General’s Eastern Regional Office, said the agency would continue pursuing alleged False Claims Act violations.
The Franklin Towne settlement does not amount to a finding that the school or Venditti violated the law. The Justice Department said the claims resolved through the agreements are allegations only and that no determination of liability has been made.
Franklin Towne will now use an independent third party to conduct future admissions lotteries, one of the governance changes acknowledged by the Justice Department in the settlement.
