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The Department of Justice reports that two education officials have been sentenced to jail after pleading guilty to fraudulently enrolling people in virtual schools and then claiming money from public funds on their behalf. The districts received payments from the Alabama Education Trust Fund as if the students were attending public schools while the defendants misappropriated state money through direct cash payments and payments to third-party contractors owned by various co-conspirators.

An investigation at Baltimore city school found that administrators schemed to inflate enrollment, pressured teachers to change grades and scheduled students into classes that didn’t exist. Over a three-year period, about 100 students remained on the rolls but didn’t attend the school. The school operated evening and summer courses designed to allow students to make up credits, but the courses didn’t meet standards. In some cases, unqualified teachers were assigned to teach the classes, and in other cases, staff members were named as teachers of record for a class they never taught.

School officials in the city of Athens and Limestone County have conspired to obtain more public funding by claiming to enrol full-time private students in the system's virtual schools. The two school districts were improperly paid around $7 million in state education funding for the 2016-17 and 2017-18 school years. By November 2017, more than 500 private school students were fraudulently enrolled in Athens Renaissance schools and over 50 students in Conecuh County.