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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) - All month long recreational vehicle owners staying at the Dreams for Change safe parking lot have been desperate to find a new place to stay. They were given 30-day notices to leave the site by the end of July. Dreams for Change leadership says it was always their intention to shift clients to the City's new safe parking lot, located near SDCCU stadium. However, the new safe parking lot has gone mostly unused. RV owners are required to move their vehicles during the day, which can be a barrier for some.CEO of Dreams for Change, Teresa Smith, says they've now come up with a temporary solution. RV owners will be allowed to leave their vehicles on the property, but they will have to go during the day.The nonprofit must balance serving their clients while also abiding by permitting and zoning rules. They are working to treat RVs the same way cars are treated in the program.Smith says the ultimate goal is to transition clients into permanent housing, who receive assistance from a caseworker. According to the Dreams for Change website, 2,650 people have been served through the program since 2009, and 65% of participants find housing or long-term transitional housing within three months of coming into contact with the nonprofit. 1268

SAN DIEGO (KGTV) -- A woman was killed after a collision with a tree that split the car she was driving in two in the Carmel Mountain Ranch area.According to San Diego police, the driver, who has yet to be identified, was traveling on Carmel Mountain Road at an unknown speed when she lost control of the vehicle and hit a tree.Police said a passerby spotted the wreckage round 1:15 a.m. Wednesday, but it's unclear when the crash occurred.No other injuries were reported. 480

SAN DIEGO (KGTV) -- A second person has died and three children remain hospitalized after a fire tore through a Logan Heights home Sunday morning. The family’s oldest son told 10News his mother and father, who he identified as Nicolasa Mayo and Jose Romero, were killed in the fire. His two younger sisters and brother remain in the hospital following the blaze. The 26-year-old says he awoke Sunday morning to find his bed on fire. The man tells 10News he tried yelling at his family to get out of the home. "My dogs were jumping on me, trying to wake me up. I woke up. When I woke up, my bed was on fire. I jumped out of bed and started screaming the house is on fire," said Wilber Romero.The fire started around 4:30 Sunday morning on the 3100 block of Clay Street. "The minute I stepped out of my restroom, my house on the inside felt warm, like really warm. The curtain was open and I looked across the neighbors house was just bursting in flames," said Maria Orona, who lives nearby. According to the San Diego Fire-Rescue Department, firefighters had to go inside the home to pull many of the victims out. One witness who was nearby when the fire started told 10News he could see one of the victims reaching through bars in the windows, unable to escape.At least three fire engines and dozens of firefighters responded to the blaze.At this time, it’s unclear what sparked the fire, but the metro arson strike team was called to the home to investigate.A GoFundMe has been set up for the family to help cover funeral expenses. 1541

SAN DIEGO (KGTV) — An explosion of COVID-19 cases across California has many businesses once again changing how they operate.But not by choice. The changes come after most counties find themselves in the state's most restrictive purple tier.San Diego County's move to the purple tier means back to takeout and outdoor only dining."I see red … Not in the black right now," says Terryl Gavre, owner of Café 222 in San Diego. "I've been here 29 years, this restaurant opened in 1992 … and I am doing less in sales than I was doing in 1992."Gavre's other spot, Bankers Hill Bar and Restaurant, is in what she describes as a hibernation period. Hunkering down and trying not to lose money.Those business decisions come with a cost."If we stay open, every month you watch the savings account go down, down, down," Gavre said. "We had 15 employees here pre-COVID we're now down to 5. So 10 of my staff members have been laid off. At Bankers Hill Bar and Restaurant, we had 40 people on staff."This week, 28 other California counties across the states moved back into the purple tier."My first thought was that's very frustrating. My second thought was immediately what I've been doing for the last eight months which is lying in bed awake thinking how are we going to pull this off," said Ryan Joiner, who owns Athlon Fitness & Performance in San Luis Obispo.The rules say fitness facilities located in purple tier counties can only operate outdoors.While some businesses have spent the last nine months treading water, the most recent frustration comes with the governor's Monday press conference and changes to the tier system, allowing counties to move back a tier after one week, not two.It drastically changed the makeup of the state and how many businesses across the state can operate."Counties can move back after one week, not just two weeks," Gov. Gavin Newsom said, describing the state hitting the emergency brake. "I'll go back so you can get a sense of where we were just a week ago and now again the purple throughout the state of California.""It's really frustrating for a lot of people and ya it does seem like he's moving toward a backdoor shut down order again," James Gallagher is a state assembly member in Northern California.Gallagher says the governor keeps changing the rules just as people are finding their footing from the last set of guidelines."I just think that this approach is the wrong one," Gallagher said.Gavre says the tighter the restrictions get and the longer they go on the harder for small businesses to keep going."A lot of people out of work right now going into the holidays and I don't know what they are going to do," Gavre said.The state has said the spread of COVID-19, if left unchecked, could quickly overwhelm our health care system and lead to catastrophic outcomes. 2824