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SAN DIEGO (KGTV) -- An Australian national and his Long Beach business partner are accused of siphoning more than million from the State of California in a years-long charter school scheme. According to the San Diego District Attorney, the pair sought out small school districts with limited experience in oversight and proposed they start online charter schools to earn more public funds. Sean McManus, 46, and Jason Schrock, 44, the CEO and president of A3 Education, along with nine other people named in the case have been indicted in San Diego County. Criminal counts include conspiracy, misappropriation of public funds, paying for student information and conflict of interest.A year-long investigation uncovered a massive scheme in which McManus and Schrock told subordinates and co-defendants to open a total of 19 charter schools in both San Diego County and statewide, according to the DA. The charter schools are listed below: Valiant Academy San DiegoValiant Academy Los AngelesValiant Academy Santa BarbaraCA STEAM San BernardinoCA STEAM SonomaCA STEAM Sonoma IICA STEAM Santa BarbaraUplift California MontereyUplift California NorthUplift California SouthUplift California Santa BarbaraCalifornia Academy of Sports ScienceCalifornia Academy of Sports Science FresnoCalifornia Vanguard FresnoUniversity PrepUniversity Prep FresnoUniversity Prep San BernardinoCalifornia Prep Sutter K-7California Prep Sutter 8-12 “These defendants engaged in a devious, systematic public corruption scheme on the backs of students, their parents and the public that over time diverted millions of taxpayer dollars into their own pockets,” District Attorney Summer Stephan said. “Our team of investigators and prosecutors uncovered widespread misappropriation of public funds that extends across the state.”Co-defendants in the case who worked under McManus and Schrock at the charter schools reportedly failed to disclose their relationship with the men when starting the schools, claiming to be the schools’ leaders. McManus is charged with 64 counts and is facing more than 40 years in prison if convicted. Schrock is charged with 62 counts and also faces more than 40 years in prison, Stephan said. On top of creating the charter schools, both McManus and Schrock are accused of running another scam that paid athletic organizations for student information. The pair reportedly paid pre-existing youth programs as little as per student for enrollment documentation and would then enroll the students into a charter school during the summer, collecting roughly ,000 per student from the state. McManus and Schrock are then accused of transferring more than million in public charter school funds into companies the pair own or control. Instead of spending the money on education, once the money was in private bank accounts, both men are accused of using the funds for themselves and their families. According to authorities, McManus and Schrock used the money to invest in startup companies, real estate, and wired money directly to themselves or family members. Most of the money obtained from the state ended up in the pockets of McManus and Schrock, the District Attorney's office said. San Diego's District Attorney held a news conference Wednesday morning. Watch the conference in the player below: 3326

SAN DIEGO (KGTV) - A sign advertising a block party at the home of a registered sex offender is causing concern in Rancho Bernardo.“We would like to invite you and your kids to a neighborhood get together” read the sign, which was posted outside a home on Bernardo Oaks Drive in the Seven Oaks retirement neighborhood this week.“I always keep an eye on that house because I know there’s a registered sex offender that lives there,” said Susan Sutherland.Sutherland told 10News she looked up her community on the Megan’s Law website four years ago and found a listing for a neighbor who had had been convicted of lewd acts on a child under 14, according to Sutherland“I come from a background of abuse. I can’t live with myself if I allow a child to get hurt. I can’t live with that,” Sutherland said.The sign was posted by the contractor who recently renovated the home, which is owned by the man's mother. 10News reached out to Elor Energy, which said it had no prior knowledge of the man's past. The company canceled the event and removed the sign. 1073

SAN DIEGO (KGTV) - An effort is underway to crack down on illegal party boats and other charter vessels operating on San Diego Bay. The Port of San Diego wants to create new charter permit requirements to make it easier for those who want to operate legally to do so. Currently, legal charter vessel operators must obtain a Permit from a marina or sportishing landing where they board passengers, and according to the Port there are more charter vessel operators than there are available slips at the marinas and sportfishing landings on San Diego Bay.To address this problem, the Port proposes to issue all Charter Vessel Operation Permits (Permits) for all Charter Vessel Operations and collect license agreement fees from qualified Charter Vessel Operators who do not have an agreement to operate from a marina or sportfishing landing. “San Diego Bay great place to do charter business because it's almost entirely landlocked, not subject to swells, makes for great party boats, cruising,” says Captain John Valente of San Diego Bay Cruises. Valente spent 15 months and almost 0,000 to get his boat in compliance with federal regulations. The figure does not include the price of insurance. Last year Harbor Police discovered roughly 200 charter vessels operating illegally in San Diego. “It’s very disheartening and it hurts because that's revenue lost. I need to pay the bills, I need to pay my rent,” says Valente. Officers and the Coast Guard are conducting joint patrols to stop the illegal operators. "It's not easy, the enforcement, but this does strengthen the rules and make it pretty clear who can and cannot be charter operators,” said Chief Mark Stainbrook, who added he would consider undercover operations if necessary. Stainbrook said the deadly diving boat fire off Santa Barbara's coast is another reminder at why getting this issue right is so important; they can't risk unsafe charters on the water. Valente says he's glad the Port is amending regulations, but isn't sure the current proposal goes far enough. The Port’s proposal is online and an updated ordinance will go before commissioners in December. 2140

SAN DIEGO (KGTV) — An elderly Army veteran is warning others after he was brutally attacked while riding his mobility scooter in North Park.Around 3:30 p.m. Tuesday, 81-year-old Phil Severns was headed to a grocery store on the scooter when it happened."I just felt a sharp blow on the right side of my head. It almost knocked me out ... My glasses came off and were broken,  and my head hurt terribly," said Severns.Severns says he turned around and saw two concerned women who described his attacker. He looked and saw a man on the run a block away, described as a black man in his mid-20s with long hair, a lean build, and blue shirt and shorts.MAP: Track crime happening in your neighborhoodAt that moment, Severns says he kept thinking that he had to find out who did it. Severns decided to go after him, following him into a nearby CVS Pharmacy parking lot, where he found the man swinging a sock that appeared to be filled with rocks."Confronted him and asked him why he hit me," said Severns.The answer? A claim that Severns had hit him first, which Severns calls untrue. Before the man took off, there was more odd behavior.    "Just walking in circles and waving that sock," said Severns.It appears he wasn't done. Across the street at Walgreens, managers tell 10News they believe the same homeless man punched a clerk an hour later, the second such altercation with the man in the past year. It's a revelation that makes Severns more fearful."He's dangerous and acting crazy. I think he's having fun and needs to be caught," said Severns.Severns says the pain has faded and he didn't suffer any serious injuries.  If you have any information on the case, call Crime Stoppers at 888-580-8477. 1765

SAN DIEGO (KGTV) — A taste of Comic-Con fun hits town early, featuring San Diego's cutest "underdogs."PAWmicon returns, this year at the future site of Balboa Park's Comic-Con Museum (formerly the Hall of Champions.) The event invites dog fans out for a day of superhero-themed fun with their furry companions to benefit the Helen Woodward Animal Center's orphaned animals and programs.The event will also host a canine and owner costume contest. Owners can enter their dog's cosplay (or pawsplay) into contests for superheroes, super villains, cartoon canines, pop culture pups, and dynamic duos for owners and their dogs.For Instagram happy owners, several photo scenes will also be set up for pooches.Visitors can also visit with pet vendors and artists, test their pop culture knowledge with trivia, enjoy children's activities, and win pet giveaways.PAWmicon runs from 11 a.m. until 3 p.m. Admission is , with tickets also required to take part in trivia, and are available online here. 1002