Nationwide — A Philadelphia charter school and its former CEO have agreed to pay nearly $4 million to settle federal allegations that the school discriminated against Black applicants during a 2023 admissions lottery. The Justice Department said Franklin Towne Charter High School and former CEO Joseph Venditti manipulated a lottery that was supposed to randomly select students for admission. Federal officials allege the changes reduced Black applicants’ chances of being accepted. The school was receiving federal education grant money at the time.
The allegations stem from a January 2023 admissions lottery. According to the Justice Department, Franklin Towne was required to use a random selection process. Instead, officials said the school, acting through or at the direction of Venditti, interfered with the process in a way that disadvantaged Black applicants.
According to The Grio, the government said the alleged conduct violated requirements tied to federal funding. Title VI of the Civil Rights Act of 1964 prohibits schools receiving federal financial assistance from discriminating based on race, color, or national origin. The Justice Department brought the case under the False Claims Act, alleging that Franklin Towne and Venditti violated federal requirements connected to the funding.
Under the settlement agreements, Franklin Towne will pay $3,639,328.77, while Venditti will pay $275,000. The payments total nearly $3.9 million. The Justice Department said it determined the amounts after reviewing the defendants’ ability to pay.
The settlement also recognizes changes the school has made since the admissions controversy. Franklin Towne has replaced its CEO and hired an independent third party to conduct all future admissions lotteries. Federal officials said those changes were among the steps the school has taken to strengthen its governance and admissions process.
U.S. Attorney David Metcalf said schools that receive federal grant money cannot use race to select or exclude students. Jamila Davis, special agent in charge of the Education Department Office of Inspector General’s Eastern Regional Office, said the agency would continue pursuing alleged False Claims Act violations. The settlement, however, does not establish that Franklin Towne or Venditti violated the law. The Justice Department emphasized that the claims remain allegations and that neither party has been found liable.