Former Epic Charter Schools CFO testifies, reaches tentative deal with the state
OKLAHOMA CITY (KFOR) — Joshua Brock, the former Chief Financial Officer (CFO) of Epic Charter Schools, said in court on Friday he reached a tentative deal with the state in exchange for his testimony in the ongoing embezzlement case.
Brock’s testimony followed a day and a half of testimony from Brenda Holt, the director of forensic audits, from the Oklahoma State Auditor and Inspector’s Office.
He testified the state agreed to a tentative agreement of 15 years probation and restitution with a suspended sentence in exchange for taking the stand.
A suspended sentence means Brock will be a convicted felon but not serve time in prison. The restitution amount has not been decided yet.
The prosecution started Friday with getting insight on Brock’s education and employment history.
Brock testified that he had met Epic co-founders Ben Harris and David Chaney at different periods of time.
He said he met Harris first in the early 2000s and then Chaney in 2011 during a job interview at a local metro restaurant.
Brock, Chaney and Harris are charged with racketeering, conspiracy, embezzlement, money laundering and other offenses.
The state argues the men stole millions of dollars from taxpayers, which in turn negatively impacted students.
Brock testified that he was offered a contract to serve as CFO for Epic, Epic Youth Services (EYS) and basic accounting working a filter tech company.
Fourth day of Epic Charter Schools preliminary hearing
Brock testified, over time, his filter tech responsibilities were eliminated as Epic’s enrollment numbers spiked.
Brock testified that his Epic and EYS duties often intermingled in ways consistent of poor internal controls.
He said that he would come up with invoices for EYS to bill Epic, before sending them to himself for payment, sending the payment back to himself and then processing the deposit.
Brock also testified that he and Harris came up with a fake Excel template formula to generate fake percentage costs for some of those invoices.
He said the invoices were submitted to a state accounting system in which Harris should have been required to certify them.
Brock testified Harris had given multiple individuals his login to certify the invoices on his behalf.
Brock also testified that he believed Harris and Chaney had influence over Epic’s school board, which originally consisted of members they had appointed themselves.
Day three of preliminary hearing for Epic co-founders
The defense for Harris and Chaney both objected and argued their clients did not have influence.
Brock testified that there was rarely an instance of anything being added to a board agenda by either of the co-founders that wasn’t approved by the board.
In additions to information about invoices, the prosecution also pressed Brock on the 2020 formation of Ed Tech, an LLC Brock said was co-founded by Harris and Chaney.
Brock testified Ed Tech was a contracted vendor operating alongside EYS that saw payments from Epic as well.
Brock testified the LLC had no employees and that the contract was approved by Harris and Chaney on both sides; with no other technology vendors given a chance to bid.
Brock additionally testified that Ed Tech was created as a means to add an additional layer of protection after House Bill 1995 passed that required more thorough itemization of invoices.
Both the prosecution and defense have more questions to ask Brock, but could not agree on a date and time to continue the preliminary hearing in court Friday.
Oklahoma County Special Judge Jason Glidewell said the hearing needs to reach a conclusion. Glidewell will decide if there is sufficient evidence for a trial.
For the latest news, weather, sports, and streaming video, head to KFOR.com Oklahoma City.
