SEC reportedly looking into LAUSD's 'iPads for schools' program

On the heels of a report suggesting the Los Angeles School District (LAUSD) was trying to back out of a deal that brought iPads to every student in their system, the SEC has reportedly opened an informal inquiry on whether or not the money used for those iPads was within legal guidelines. The SEC is specifically interested in whether or not the LAUSD properly disclosed to investors how the bond money would be used, according to The Los Angeles Times.

Yesterday, The Times reported the LAUSD was seeking a "refund" from Apple over iPads. The dust-up is reportedly due to software provider Pearson, who provided clumsy apps and services to the LAUSD. Apple, who naturally provided the hardware, is falling victim to Pearson's problematic rollout.

The SEC hasn't confirmed an inquiry was launched, but LAUSD officials have confirmed a meeting with an SEC attorney, saying "LAUSD was transparent regarding the program and its funding".

The issue seems to be the actual designation for the bonds; LAUSD earmarked the money for 'technology', which is fine according to California state law. The bond measures used for 'iPads in schools' were passed in 2008, a full two years ahead of Apple launching the iPad.

It seems the SEC is concerned with the LAUSD using money for 'technology' on tech that wasn't even a thing at the time the bonds were granted.

This is the latest chapter in what has been a wholly problematic rollout for the LAUSD's technology initiative. At every turn, the program seems more and more confused and wrinkly, sticky and ripe with red flags. If the SEC wasn't satisfied with the LAUSD's answers to an inquiry (if it even happened), we can expect more to come from this.

Source: The Los Angeles Times