OIG: Office of Inspector General
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Investigative Report

December 15, 2009

U.S. Department of Justice
United States Attorney
Eastern District of Pennsylvania

615 Chestnut Street
Suite 1250
Philadelphia, Pennsylvania 19106-4476

Contact: (215) 861-8200

Former Board President Sentenced in Charter School Fraud Case.

PHILADELPHIA—Rosemary DiLacqua, 51, of Philadelphia, was sentenced today to a year and a day in prison for honest services mail fraud committed while she was board president for the Philadelphia Academy Charter School (“PACS”), announced United States Attorney Michael L. Levy. DiLacqua accepted a total of approximately $34,000 in payments from codefendant Kevin O’Shea, the former CEO of PACS, and another former school official that she did not disclose on her mandatory statement of financial interest form or to the other board members. After receiving these undisclosed payments, DiLacqua approved a series of salary increases for O’Shea and also a 20-year consulting contract for the other former school official that would have paid him in excess of $100,000 annually for no more than 90 days of consulting each year. When O’Shea left PACS the following Spring (May 2008), he was earning in excess of $200,000 in salary from PACS.

DiLacqua pleaded guilty to the charge in July 2009. In addition to the prison term, U.S. District Court Judge Eduardo C. Robreno ordered DiLacqua to pay a fine in the amount of $10,000 and to pay a special assessment of $100. Co-defendant Kevin O’Shea was sentenced, in October, to 37 months in prison and $900,000 restitution.

This case was investigated by the United States Department of Education Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation Division. The School District of Philadelphia’s Office of Inspector General assisted in the investigation. It was prosecuted by Assistant United States Attorney Derek A. Cohen.

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Last Modified: 12/16/2009