The CEO of a local charter management organization, which was investigated by the Louisiana Department of Education (LDOE) after a report on this blog raised questions about its management and financial practices, is being accused of financial impropriety in a lawsuit filed by his own brother.
On March 28th, I published a post – “Red Flags Everywhere” – which highlighted troubling issues at Smothers Academy, a Type 2 charter school in Jefferson Parish. It noted that the school appeared to be in violation of state ethics laws prohibiting nepotism, seeing that Smothers Academy’s CEO Damon Smothers had hired his brother, Kemic Smothers, as the organization’s legal counsel and director of procurement. The piece also drew attention to several concerns surfaced in Smothers Academy’s F.Y. 2017 audited financial statements, including the assertion that Damon Smothers had spent over $9300 on the school’s credit card for personal expenses.
Read my original piece on Smothers Academy:
A review of documents from a Jefferson Parish charter operator that applied to run a historic high school in New Orleans has revealed that the organization could be violating state ethics laws and has been flagged for serious deficiencies in its management and accounting practices.
A week later, LDOE officials sent a letter to Eddie Williams, president of the board of directors of Smothers Academy, requesting documentation related to the problems identified in their audit. On April 17th, LDOE sent a second letter to Williams, which formally notified the board that Smothers Academy was in violation of the state’s nepotism laws and instructed them to terminate the employment of either Damon or Kemic Smothers by June 30th. As a result, Kemic was fired that same day.
Yet it appears that he is refusing to go without a fight.
Court documents reveal that Kemic is now suing his brother Damon (along with Smothers Academy, Inc., two members of the board of directors, and the school’s CFO Mark DeBose) for breach of contract, violation of the whistleblower statute, retaliatory discharge, and fraud.
In a petition filed with the Orleans Parish Civil District Court in July, Kemic claims that he was summoned to an April 5th meeting with his brother and CFO Mark DuBose in which they revealed that Damon had “gifted himself” $20,000 drawn from the school’s bank account without the knowledge or consent of the board of directors. They then asked Kemic to devise a way for Damon to keep the money without having to inform the board or repay it. However, Kemic refused, noting that the unauthorized allocation of funds was almost certainly illegal.
Kemic goes on to assert that he was subsequently terminated on April 17th – as opposed to June 30th when his contract officially ended – for refusing to help Damon hide the $20,000 he had taken from the school’s bank account. According to the lawsuit, “Damon Smothers insinuated that Kemic Smothers was not a team player and that he should have found a way for Damon Smothers to avoid repaying the $20,000.00.”
It should be noted that accusations made in Kemic Smothers’ lawsuit are simply that: accusations. The court has not ruled on the merits of the case. Nevertheless, in light of the board’s lax financial oversight and Damon’s questionable use of the school’s credit card, these latest allegations should be investigated to ensure that Smothers Academy administrators are not enriching themselves at the expense of their students.