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Federal officials announce an indictment in an $8 million public school kickback scheme during an FBI press conference. Inset: An aerial view of a luxury Miami-area vacation home that prosecutors say defendants leased for $30,000 a month using stolen (FBI)
PHOENIX – A 62-year-old Phoenix man was arrested on Thursday by federal agents who say he played a leading role in an elaborate $8 million public school fraud and kickback scheme that allegedly funneled millions in taxpayer dollars toward luxury vehicles and a sprawling Miami mansion.
What we know:
Federal prosecutors say Jonathan Larry Ballew of Phoenix collaborated with former Ohio school superintendent Leondo Ramone Davenport to siphon public education funding from Dohn Community High School. According to a federal indictment unsealed in Cincinnati, the duo executed a multi-year fraudulent invoice scheme, splitting over $4 million in kickbacks to fund lavish personal lifestyles.
Ballew and Davenport, 50, were both taken into federal custody on Sept. 3 and face an eight-count indictment charging them with wire fraud and engaging in monetary transactions derived from unlawful activity. If convicted, the wire fraud charges carry a maximum sentence of up to 20 years in prison, while the illegal transaction counts carry up to 10 years each.
The scheme:
According to federal investigators, Ballew incorporated at least four separate shell companies purporting to provide educational services, technology, staffing and remodeling work to the school. Between 2021 and 2024, Ballew allegedly submitted millions of dollars in fraudulent invoices — from Arizona — for work that was never performed in Ohio.
Davenport, who served as superintendent of the Cincinnati-based public community school from 2015 to 2019 and later operated it through a private LLC until 2024, approved the phony billings, according to federal court filings. Prosecutors allege Davenport authorized over $8 million in payments to Ballew’s entities, with Ballew kicking back more than $4 million directly into Davenport’s pockets.
Dig deeper:
Federal agents say the stolen funds paid for high-end luxury automobiles and upscale real estate rentals, including an October 2023 lease on a luxury vacation home near Miami, Florida, that cost $30,000 per month.
Dohn Community High School opened in 2001 and initially operated as an independent public alternative school focused on helping teenagers in addiction recovery, but rampant fraud forced the charter school’s coffers to run dry. The school announced an abrupt shutdown in March 2025 after former leaders reported having about 1,600 students to get more government funding, when the school actually only had around 600 students.
What they’re saying:
Federal and state law enforcement agencies slammed the defendants for abusing positions of trust and profiting off resources meant for vulnerable teens. “This indictment alleges a brazen scheme that stole from both taxpayers and students,” said Assistant Attorney General Colin McDonald of the Justice Department’s new National Fraud Enforcement Division, which was just created in April. “Education dollars exist to support the learning and development of American children — not to fund the lifestyles of unscrupulous school officials.”
The Source: Information in this report was gathered from the U.S. Attorney’s Office, Southern District of Ohio, and local Ohio media reports.