Ex-CFO Arrested for Allegedly Stealing $300K from Closed Philly Charter

Ex-CFO Arrested for Allegedly Stealing $300K from Closed Philly Charter

> At a Glance

> – Darnell Smith, 52, was arrested Jan. 9, 2026, for allegedly embezzling $300,000 from Khepera Charter School

> – Indictment came July 2020; funds allegedly taken 2015-2017 while he served as Chief Financial Officer

> – The Philadelphia charter school shut in 2018 after its charter was revoked

> – Why it matters: Public-school dollars meant for students are now at the center of a federal prosecution

allegedly

A former charter-school money manager is in custody more than five years after prosecutors say he siphoned hundreds of thousands of dollars from the now-defunct Khepera Charter School in Philadelphia.

The Charges

Federal prosecutors indicted Darnell Smith in July 2020, charging him with embezzling over $300,000 between 2015 and 2017 while serving as the school’s Chief Financial Officer.

The U.S. Marshal’s Service confirms Smith was finally taken into custody on January 9, 2026.

About Khepera Charter School

Khepera operated as a Philadelphia-based charter school until:

  • 2018 – the Pennsylvania Department of Education revoked its charter
  • The campus closed, leaving parents and staff scrambling for alternatives

Key Takeaways

  • More than $300,000 in public education funds allegedly diverted
  • Arrest follows a 2020 federal indictment, showing a lengthy investigation
  • The school’s closure in 2018 preceded the financial scandal’s criminal phase

Smith’s case underscores the financial oversight challenges that can plague charter schools when safeguards fail.

Author

  • I’m Daniel J. Whitman, a weather and environmental journalist based in Philadelphia. I

    Daniel J. Whitman is a city government reporter for News of Philadelphia, covering budgets, council legislation, and the everyday impacts of policy decisions. A Temple journalism grad, he’s known for data-driven investigations that turn spreadsheets into accountability reporting.

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