Thursday, April 27, 2006

Geneva Capital Partners update

Newly released court documents have shown that the District was warned about Geneva Capital Partners before it was entrusted with $21 million of the District's money.
Before selecting a newly formed Maryland firm to handle nearly $21 million in public charter school funds, District officials were warned that it had "no operating history" and that it planned to use the money to purchase a financially troubled corporation, according to papers filed yesterday in federal court.

D.C. officials nonetheless entrusted millions in local and federal funds to Geneva Capital Partners LLC beginning in July 2003, when the private company was less than three months old, court papers show. Geneva later made a $250,000 loan to a company partly controlled by the city consultant who negotiated the deal.

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