Philadelphia Charter School, Former CEO Agree to Pay Nearly $4 Million Over Alleged Discrimination Against Black Applicants

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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.

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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.

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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.

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