Hmong College Prep Academy superintendent at risk of dismissal due to risky investment

That same year, a federal lawsuit alleges that HCPA wired $ 5 million from its Minnesota-based account to Woodstock Capital, which allegedly concerned the charter school‘s legal counsel as not being “within the parameters of policy. (HCPA investment) ”.

In an email attached to Federal Court documents, the attorney representing the charter school told the superintendent of his “concerns about HCPA’s intention to invest” with Woodstock Capital prior to the wire transfer.

The lawyer representing the charter school noted in a legal opinion to the superintendent that investments “involve a risk of loss of capital” and that “interest is only suitable for sophisticated investors who do not need immediate liquidity. for their investments “. The lawyer advised to review the decision with an independent advisor.

The attorney representing Woodstock Capital also noted that he was under the impression that the charter school and its attorney “had resolved any issues regarding Woodstock’s investment strategy” by consulting an auditor individually.

HCPA then claimed that the school was seeing “significant decreases in the value of the HCPA account,” and Woodstock Capital noted that “several” phone calls, texts and emails were exchanged “after Dr. worried about “withdrawals” from the account. “

A filing in early September reported a “loss of about $ 4.3 million to date.”

Meanwhile, Bethel University also reported receiving inquiries from the Minnesota Department of Education regarding certain conflicts of interest related to HCPA.

As a result, the university, in its role of authorizer, asked the HCPA board of directors to fire Hang. The university asked the HCPA to fill this position with a qualified candidate who had no previous connection to the charter school.

The university is also asking HCPA to hire an external consultant to implement the recommendations outlined in a corrective action plan, which includes the creation of a separate position to move financial responsibilities away from the superintendent position.

On behalf of Hang, a spokesperson declined an interview request from 5 EYEWITNESS NEWS.

The HCPA Board of Trustees issued the following statement to 5 EYEWITNESS NEWS in response to inquiries from the university:

The Hmong College Prep Academy Board is reviewing and responding to the Bethel University report and recommendations. The Council is in the process of retaining the services of an independent legal advisor to investigate and consider specific recommendations concerning staff. It is important that the Council follows due process in matters relating to employment.

While Bethel’s annual review found that our academics and mission are strong, it finds that our governance and compliance need to be more focused. Our school’s board and administrative functions will have stronger processes and checks and balances in place. We take the assessment of our management very seriously and have begun the process of partnering with Bethel and others to take corrective action as required.

As we begin the school year, Hmong College Prep is a strong school community that our families, students and teachers can all be proud of. Our registrations are healthy and solid. We are in a solid financial position for the future.

Graduation rates at Hmong College Prep are above the state average, and our test scores are above the district average. Hmong College Prep Academy fulfills our mission to provide excellent education, cultivate a wealthy school community, and focus on college preparation.

Motions to dismiss and change of venue will be heard on September 29, according to documents filed by the Federal Court.

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