Elite Private School on Brink of Collapse Following Financial Scandal
A prestigious private educational institution operating campuses in Massachusetts and Rhode Island faces imminent closure after its founder allegedly concealed a staggering $13 million debt over several years. The Croft School, which charges annual tuition of $35,490, was founded in Providence, Rhode Island in 2017 before expanding to Boston in 2020.
Revelation of Concealed Debt
According to a letter sent to the school community on March 15, founder Scott Given, 45, revealed earlier this month that he had been hiding millions of dollars of debt through deceptive accounting practices. The letter detailed that on March 6, Given contacted a board member to confess he had been misrepresenting expenses and costs by maintaining two separate sets of financial records.
The board stated it only gained access to detailed financial documentation following this call, discovering the full extent of the $13 million debt. School officials emphasized they were completely unaware of any manipulated financial records, and the correspondence to families confirmed Given had been suspended without pay pending further investigation.
Immediate Consequences and Parental Outrage
A spokesperson for the institution told CBS News that classes would continue operating normally until Friday, March 27, but warned the school could close permanently after that date. Parents expressed profound concern and anger about the situation, questioning where their children would complete the remaining two months of the academic year.
"Where are these kids gonna go?" asked Croft School parent Nicky Bandera, echoing the sentiments of many families who had already paid over $30,000 annually for their children's education. Despite these substantial tuition payments, parents have now been asked to participate in fundraising efforts to keep the school operational through the end of the school year.
Financial Rescue Attempt and Legal Complications
The board estimated that approximately $5 million would be required to maintain all school staff on payroll until the academic year concludes. While some parents support this initiative to preserve educational stability for their children, Boston Public Schools has announced readiness to absorb the student body should the private institution fail.
"Boston Public Schools has a legal and moral obligation to provide children living in the City of Boston with a high-quality, free, and public education," the school system stated publicly.
The debt revelation emerged just one month after the school abandoned expansion plans in Boston's South End neighborhood, where it had intended to occupy a building currently housing Foodie's Market grocery store. The school withdrew from this expansion in early February following community backlash about losing an affordable, walkable grocery option.
Legal Action and Additional Allegations
Now facing financial crisis, the owners of the building leased by Foodie's Market have filed a lawsuit against Given and The Croft School. The legal complaint accuses the school founder of forging a $500,000 letter of credit from Leader Bank that was discovered as fraudulent when transfer attempts failed, prompting bank officials to contact law enforcement.
According to the school community letter, Given admitted to board members that he had indeed forged the letter of credit. The lawsuit seeks $10 million in damages for breach of the lease agreement and an additional $4.3 million for property devaluation resulting from community opposition to the grocery store's closure.
Defense and Ongoing Investigation
Given's legal representatives told Axios that their client "has never used any school funds for his own personal benefit." They further stated: "Scott Given founded The Croft Schools with a vision to provide outstanding educational opportunities to the children of hundreds of city-based families. At all times, he has used school funds solely for appropriate school-related purposes. The well-being of The Croft School community has been and will remain one of Scott's top priorities in life."
The Daily Mail has reached out to both The Croft School and Scott Given for additional commentary as the educational community awaits resolution to this developing financial and legal crisis.
