blast from the past

Who is Dan Loeb? The billionaire investor who chairs Success Academy’s board has a checkered past

A screenshot taken from an American Enterprise Institute event published in 2014.

Success Academy’s board chairman and major charter school donor Daniel Loeb made headlines this month for posting a racially charged comment on Facebook that compared an African-American New York state senator with the Ku Klux Klan.

Loeb deleted the post, apologized, and left Success Academy and other charter school organizations scrambling to condemn his behavior — and explaining why he would remain on their boards.

Loeb represents a double-edged sword for charter schools. He is a wealthy and well-connected hedge fund manager, who has given millions of dollars to the charter school cause. But his actions force Success Academy CEO Eva Moskowitz and other charter leaders to make a calculation: Is his behavior a fair price to pay for the boost to their cause?

So far, they have apparently decided that it is. He has not yet been removed from Success’s board. Here are other things Eva Moskowitz has had to grapple with — which include a string of insensitive comments, but also his support for other progressive causes— as she has navigated her relationship with Loeb over the years:

He’s a nonpartisan ally — and antagonist. Loeb supports both Democrats and Republicans, and he also attacks candidates and lawmakers on both sides of the aisle. For example, he’s a major backer of New York Gov. Andrew Cuomo, but he has given to Republican mayoral candidate Nicole Malliotakis and supported Mitt Romney in past presidential campaigns. At the same time, he has lashed out at both Hillary Clinton and Barack Obama, often in withering and offensive terms, while also telling friends he would not vote for Donald Trump.

This isn’t the first offensive comment he’s made. Far from it, in fact. Loeb is fast-fingered on Facebook and frequently uses derogatory language to lash out at people who have made him unhappy. Here are a few of the examples that have been reported previously:

  • Another time Loeb compared the unions and their supporters to the KKK: Loeb posted the following on his Facebook page in 2016, first reported by Dealbreaker: “If you truly believe that education is the dividing line (and I concurr) then you must recognizer and take up the fight against the teachers union, the biggest single force standing in the way of quality education and an organization that has done more to perpetuate poverty and discrimination against people of color than the KKK.”
  • Using a derogatory term for people of color: Loeb once got into a fight with Fairfax Financial, a Canadian insurance company, which resulted in a lawsuit. Reported Reuters in 2011: “Fairfax’s filing quotes Loeb as saying he found the situation somewhat ironic because “the odds are much greater of being strung up by a Canadian Jew than a Canadian schwarze.” Loeb, who is Jewish, used “schwarze,” a derogatory Yiddish word for a black person, to describe Watsa, who is of Indian ancestry.”
  • Making light of domestic violence by comparing Obama to an abuser: In a 2010 letter to hedge fund managers who had supported Obama, Loeb wrote, according to CNBC: “I am sure, if we are really nice and stay quiet, everything will be alright and the President will become more centrist and that all his tough talk is just words; I mean he really loves us and when he beats us, he doesn’t mean it; he just gets a little angry.”
  • Making a xenophobic, homophobic attack against a rival: A damning 2013 Vanity Fair profile dredged up an anecdote from 1999, when Loeb was feuding with John Liviakis, a San Francisco public-relations executive. In an “imaginary monologue” in the voice of Liviakis, Loeb wrote under a pseudonym: “Then I will laugh at you fools for buying my shares and I will celebrate with a bottle of grappa, some fresh feta, and a nice young boy-just like in the old country.” Liviakis sued him for libel.

Loeb’s allies say his mean-spirited comments don’t necessarily reflect deep-seated beliefs. “I have known Dan to be a champion for underserved children who has worked tirelessly for years on their behalf,” said Jenny Sedlis, the head of StudentsFirstNY and a former deputy to Moskowitz, last week. “I know from first-hand experience the post he made does not reflect his true beliefs or the person he is.”

He has championed progressive causes in the past. Most notably, Loeb helped get gay marriage on the books in New York by throwing his influence into winning over Senate Republicans. This position put him in line with most Democrats and with Moskowitz, who has had wide support in New York City’s gay community for nearly 20 years. It also suggests that some of his internet posts, which have included seemingly homophobic comments, do not necessarily reflect the entirety of his beliefs.

It’s also not his first ethical challenge. Loeb had an account on the marital cheating site Ashley Madison, though he later said he did not use the site to engage or meet anyone on the site. He also has garnered criticism for the way he uses online message boards, where some business insiders say he plays fast and loose with federal regulations about the ways hedge fund operators can communicate with investors. And multiple accounts have him hitting a Cuban child with his car during a vacation in 2002, although he and his friends tell different versions of that story.

His friends and investors have their own problems. At Third Point Management, Loeb manages $17 billion and has a host of high-profile investors — including someone else who landed in hot water for speaking freely this summer. Anthony Scaramucci told Vanity Fair that Loeb was “one of the best investors of his generation. . . . He is the guy that would chew through the wallboard to create a return for his investors.” At the time, Scaramucci had invested about 10 percent of his own fund’s $500 million with Loeb. Now, of course, he’s better known as the man who served for 10 days as Trump’s White House communications director before resigning after making a profanity-laden public attack on other White House officials.

Walk it out

NYC mayor encourages school walkouts in wake of Florida shooting: ‘If I was a high school student today, I’d be walking out’

PHOTO: Michael Appleton/Mayoral Photography Office
Mayor Bill de Blasio

In the wake of a school shooting in Florida that left 17 dead, New York City Mayor Bill de Blasio said students won’t face serious disciplinary action if they choose to participate in a national school walkout planned for next month to protest gun violence.

“If I was a high school student today, I’d be walking out,” de Blasio said Thursday. “This is too important a moment in history to try to hold back the desire of our young people to see fundamental change and to protect themselves.”

Students across the country are planning to walk out of class at 10 a.m. on March 14 “to protest Congress’ inaction to do more than tweet thoughts and prayers in response to the gun violence plaguing our schools and neighborhoods,” according to a Facebook description of the event.  The protest is scheduled to last 17 minutes, one for each person who died at Marjory Stoneman Douglas High School.

And unlike one Texas school district, which threatened to slap students with suspensions if they walked out, de Blasio said students would not face serious discipline. “There’s no negative, lasting impact if they do this,” the mayor said.

De Blasio’s tacit endorsement of the walkout comes just days after he announced that schools across the city would deploy more “rapid-response lesson plans” about current events. On Friday, de Blasio told WNYC’s Brian Lehrer that the protests are a “teachable moment.”

We are going to do lesson plans around this issue leading up to that day,” de Blasio said. “We are going to make sure that there’s a real educational impact.”

The city also announced this week that every New York City school will hold a lockdown drill by March 15, and every middle and high school will be subject to at least one random screening with metal detectors this year.

Here’s more on what de Blasio told Lehrer this morning:

For high school students – we are going to be very clear, we want parents to weigh in, to let us know if they are comfortable with a young person walking out. It is supposed to be for 17 minutes. We expect the school day before and after to proceed. For younger folks – middle school, elementary school — the model I’m interested in, we are still working on this, is to have it be within the context of the building, you know to gather in the building for the memorial to the 17 young people lost, 17 people lost I should say. And again that may be silent, that may be with young people speaking, that’s all being worked through.

Speaking Out

Students at Denver’s George Washington High say their voices were unheard in principal selection

PHOTO: Denver Post file

When Shahad Mohieldin learned that students, parents, and teachers at George Washington High School in Denver would have a say in who was named the next principal, the high school senior spent days recruiting representatives from all three groups to participate.

Mohieldin, a member of the school’s advisory board, said she and others worked hard to ensure the group vetting the principal candidates would be diverse. It was important to include students of color and white students, parents who speak English and those who don’t, and teachers of both International Baccalaureate and traditional classes, she said, especially since the high school has been working to heal years-long racial and academic divides.

The students particularly liked one candidate who they said seemed to understand the school’s struggles. He would have also been a leader of color at a school where 70 percent are students of color. Denver Public Schools Superintendent Tom Boasberg ultimately chose a different candidate, a more experienced principal with whom he’d worked closely before.

It was a whirlwind process that took just seven weeks from when the current principal announced his retirement. In the end, Mohieldin and other students said they were left feeling like their voices were ignored.

“We were often told that, ‘Hey, your voice really matters in this. Please, we want your input,’” Mohieldin said. “It really hurts. Now we don’t trust the district as much, which is really sad.”

District leaders said the process was quick but thorough. Deputy Superintendent Susana Cordova said that while it was clear the students preferred one candidate, the input collected from parents, teachers, and community members was more mixed. The slate of three finalists was unusually strong, she said, and it was not an easy decision.

Kristin Waters, the candidate who was hired, is a former district administrator with years of experience leading a comprehensive Denver high school similar in size to George Washington. The students’ top choice was an assistant principal at East High School named Jason Maclin.

Cordova said she wants to assure students that although district leaders didn’t choose students’ favored candidate, they did consider their opinions.

“It is important to use your voice,” Cordova said. “Sometimes your voice isn’t the only piece of information we look at, but in no way does that mean to stop speaking out.”

Not listening to community feedback is a perennial criticism of Denver Public Schools, and one district leaders are continually trying to address. Recently, several major decisions have been based on recommendations from committees of parents and community members. While the process hasn’t always gone smoothly, the district has followed the community’s advice.

In the case of the George Washington principal selection, the process worked like this: Current principal Scott Lessard announced in mid-December that he’d be retiring at the end of the school year. Lessard has helmed the school for two years, and students and teachers credit him with fostering a sense of unity and a culture of openness to new ideas.

But he said the daily challenges of being a school principal led to his decision.

“I was going to retire at some point,” he said. “It may not have been at the end of this year, but it was going to be soon. The school in such a good place, I thought it was a unique opportunity now to find somebody who would be a good principal.”

The district has a pool of pre-screened principal candidates who are invited to apply for openings as they come up, Cordova said. With every vacancy, the district convenes a committee of parents, teachers, and community members to interview the candidates. In the case of high school principal jobs, the district also asks students to participate.

For George Washington, the district assembled the committee and three separate focus groups, which Mohieldin helped organize: one of parents, one of teachers, and one of students. The groups and the committee interviewed five candidates selected by the district, and based partly on their feedback, district leaders whittled the field to three finalists, Cordova said.

The three finalists then participated in a community forum. Forum attendees were asked to submit written comments on candidates’ strengths and weaknesses, and Cordova said she personally read every single one. She said district leaders also read emails students sent afterward urging the district to pick Maclin. Students said they never received responses to those emails – one reason they felt unheard.

A week after the forum, on Feb. 6, the district announced its decision to hire Waters.

Cordova said she has every confidence that Waters will be “an amazing school leader.” Waters has been principal of three Denver schools: Morey Middle School; Bruce Randolph School, which serves grades six through 12; and South High School, whose demographics are similar to George Washington. More than 300 of the 1,239 students at George Washington are black and more than 400 are Hispanic.

“She has a strong track record working in similar communities,” Cordova said.

Students had some concerns about Waters’ approachability and her seemingly close ties with district leadership; Boasberg was listed as the first reference on her resumé. They said they liked Maclin’s presence, and that he seemed knowledgeable about the school’s past struggles and had concrete ideas for its future. Maclin submitted a proposed plan for his first 100 days as principal that included conducting a listening tour of the school community.

But students said their main complaint is not the outcome but the way the process unfolded.

“The district goes through this whole act of putting on these focus groups and interviews at the school and it’s like, ‘What really came out of that?’” said sophomore Andrew Schwartz. “At this point, it seems like the answer to that question is very little. I think that’s upsetting.”

Schwartz was part of the student focus group that interviewed all five candidates. So was junior Henry Waldstreicher, who noted that students missed an entire day of school to participate.

Waldstreicher said he was also left feeling disillusioned. “Why should we even try to talk to the district if they’re not going to listen to what we’re going to say?” he said.

The perception that the selection process was top-down wasn’t just among the students. Some teachers and community members said they felt the same way.

“We were given the opportunity to give our feedback and then it went into a black box and a decision was made,” said Vincent Bowen, a community member who participates in a student mentoring program at George Washington and was on the selection committee.

Pam Shamburg, executive director of the Denver teachers union, shared those concerns, adding that what happened at George Washington has happened at other schools, too: Candidates, she said, “go through this process, this rigamarole, but the district already knows who they’re going to pick.”

Parent Elizabeth Sopher said she feels district leaders weren’t as transparent as they could have been about what they wanted in a new principal, which she suspects contributed to the disconnect between the students’ top pick and the district’s ultimate decision.

“When you say to a group, ‘You tell us what the most important thing about this new principal is to you,’” she said, but then don’t make a decision based on that, “that’s a mistake.”

For her part, Waters said she’s excited to step into her new role at George Washington. She’s slated to start March 1 and finish out the school year alongside Lessard, a transition plan Cordova said was important to the district and the school community.

Waters said she wants to build a strong relationship with students. To that end, she has already met with a group of them to talk about their concerns.

“Once I get on board, they will see me out and about and hopefully feel comfortable coming up to me and letting me know what they’re thinking,” Waters said. “I want their input.”

Junior Cora Galpern said rebuilding that trust will be crucial. In the future, Galpern said the district should give students and others more of a say in principal selection by seeking a consensus on a candidate rather than simply soliciting feedback.

“Because at the end of the day,” she said, “our next principal has a huge effect on our day-to-day lives.”