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.

Finding a home

Denver school board permanently co-locates charter elementary in middle school building

Students and staffers at Rocky Mountain Prep's first charter school in Denver cheer in 2012. (Photo by The Denver Post)

A Denver elementary charter school that was temporarily granted space in a shuttering district-run middle school building will now be housed there permanently.

The school board voted Thursday to permanently place Rocky Mountain Prep Southwest charter school in the Kepner Middle School building, where it is sharing space this year with three other school programs. Such co-locations can be controversial but have become more common in a district with skyrocketing real estate prices and ambitious school quality goals.

Rocky Mountain Prep Southwest is part of a homegrown charter network that has shown promising academic results. The network also has a school in Aurora and is expected to open a third Denver school next year in the northwest part of the city.

Rocky Mountain Prep Southwest was first placed at Kepner for the 2015-16 school year. The placement was supposed to be temporary. The district had decided the year before to phase out low-performing Kepner and replace it a new district-run middle school, Kepner Beacon, and a new charter middle school, STRIVE Prep Kepner, which is part of a larger network. The district also temporarily placed a third charter school there: Compass Academy.

Compass has since moved out of Kepner but the other four schools remain: Rocky Mountain Prep Southwest, Kepner Beacon, STRIVE Prep Kepner and the Kepner Legacy Middle School, which is on track to be completely phased out and closed by June 2019.

In a written recommendation to the school board, district officials acknowledged that permanently placing Rocky Mountain Prep Southwest at Kepner would create a space crunch.

The Kepner campus has the capacity to serve between 1,100 and 1,500 students, the recommendation says. Once all three schools reach full size, officials expect the schools will enroll a total of approximately 1,250 students. Rocky Mountain Prep Southwest currently serves students in preschool through third grade with a plan to add more grades.

“DPS facilities staff are currently working with all three schools to create a long‐term vision for the campus, including facility improvements that ensure all three schools have what they need to continue to excel,” says the recommendation from Chief Operating Officer David Suppes and Director of Operations and Support Services Liz Mendez.

District staff tried to find an alternate location for Rocky Mountain Prep Southwest but were unsuccessful, the recommendation says. The district does not have many available buildings, and competition for them among district-run and charter schools can be fierce. In northeast Denver, seven secondary schools are currently vying for the use of a shuttered elementary.

Future of Schools

Indianapolis needs tech workers. IPS hopes that George Washington will help fill that gap.

PHOTO: Dylan Peers McCoy

Indiana companies are looking for workers with computer expertise, and Indianapolis Public Schools leaders want their students to fill that gap.

Next year, George Washington High School will launch a specialized information technology academy designed to give students the skills to pursue careers in IT — and the exposure to know what jobs even exist.

“Half of what kids aspire to be is either someone they know does it or they’ve seen it on TV,” said Karen Jung, president of Nextech, a nonprofit that works to increase computer science preparation in K-12 schools. Nextech is partnering with IPS to develop the new IT program at George Washington.

For teens who don’t know anyone working in computer science, meeting role models is essential, Jung said. When teens see women of color or artists working in computer sciences, they realize there are opportunities for people like them.

“Once we put them in front of and inside of workplaces … it clicks,” Jung said. They believe “they would belong.”

The IT program is one of three academies that will open in George Washington next year as part of a broad plan to close nearly half of the district’s high schools and add specialized focus areas at the four remaining campuses. In addition to the IT academy, George Washington will have programs in: advanced manufacturing, engineering, and logistics; and business and finance.

The district is also moving to a model without neighborhood high schools. Students will be expected to choose high schools based on focus area rather than location. This year, many current high schoolers were required to reapply in an effort to make sure they enroll in academies that fit their interests.

The district will host a showcase of schools to help parents and students with their selections. The showcase runs from 10 a.m. to 2 p.m. Saturday at the Indiana State Museum.

Stan Law, principal of Arlington High School now, will take over George Washington next year. (Arlington will close at the end of this year.) He said the new academies offer an opportunity for students to see what they need to master — from soft skills to knowledge — to get good jobs when they graduate.

“I want kids to really make the connection of the purpose of high school,” Law said. “It is that foundation for the rest of your life, in terms of the quality of life that you are going to live.”

PHOTO: Dylan Peers McCoy
Stan Law

When the IT academy launches next year, students who select the program will be able to spend about one to two classes per year focused on information technology, said Ben Carter, who runs career and technical education for IPS.

Carter hopes the academies will reshape George Washington and other IPS campuses by connecting potential careers with the work students do everyday at school. Students who share a focus area will be in a cohort, and they will share many of the same core classes such as English, math and history, said Carter. Teachers, in turn, will be able to relate what students are studying in their history class to projects they are working on in the IT program, for example.

To show students what a career in information technology might look like, students will have the chance to tour, connect with mentors and intern at local companies.

“If I’m in one of these career classes — I’m in software development, but then I get to go to Salesforce and walk through and see the environment, to me as a student, that’s inspiring,” said Carter. “It’s like, ‘oh, this is what I can have.’ ”

He added. “It increases engagement but also gives them a true sense of what the career is.”