Indiana union’s “Ponzi-like scheme” will cost National Education Association $14 million

Indiana union’s “Ponzi-like scheme” will cost National Education Association $14 million - EAGnews.org powered by Education Action Group Foundation, Inc

The state sued ISTA and NEA, claiming more than $27 million was owed to participating school districts after the trust went under due to bad, high-risk investments.

Under the terms of the settlement, NEA and ISTA will pay $14 million to the state within 10 days of all 27 school districts involved agreeing to the terms. Which union owes what was not disclosed, but it is academic since the Indiana affiliate is millions of dollars in the red and still effectively under NEA administratorship. The immediate payment will have to come from NEA’s national coffers, which means teachers all across the country are on the hook again to bail out ISTA.