In his message, Given wrote that a family that loaned the school $100,000, for example, would earn $50,000. A family would be paid interest annually, and the principal would be paid back in full at the end of the term.
Less than two years later, Given has been suspended by the school’s board, which announced Friday that they learned of “serious irregularities” with the institution’s finances. The board launched an investigation with outside lawyers and financial experts.
Given has not been accused of wrongdoing. The board has not publicly described the school’s financial irregularities, and school officials haven’t linked the bonds to the issues under investigation.
Nonetheless, Given’s push to raise up to $1 million from families with the promise of a high return sparked unease among financial experts contacted by the Globe.
“Does any of this scenario raise eyebrows, questions, or concerns? All the above,” said Barnet Sherman, a Boston University professor of multinational finance and trade who has experience managing multi-billion dollar funds for Morgan Stanley and TIAA.
Sherman invoked an adage that is true in finance and much of life.
“If it sounds too good to be true, it probably is,” Sherman said.
Edith Hotchkiss, a professor in Boston College’s Carroll School of Management, said it is not unusual for schools to issue such bonds. But if Croft knew of the school’s financial irregularities when they sold the bonds, she said, “it is the stuff litigation is made of.”
What happened at the Croft School Friday?
Croft’s Board of Managers told families in a Friday email that Given, the founder and executive director, had been suspended after it learned of problems with the school’s books.
“We intend to find out what happened and what steps we need to take to restructure our accounts and secure the institution’s finances,” Croft’s board members said in the email.
Given founded Croft’s first campus in Providence in 2017, followed by locations in Jamaica Plain and the South End. The school had been rapidly expanding but faced recent challenges.
Given did not respond Monday for comment. A representative for the Croft School declined to answer a Globe inquiry.
Croft has worked with Leader Bank in securing $2.5 million in loans to open and equip its campuses. In a statement Friday responding to the school’s financial issues, Leader Bank said it was “investigating this matter” and had no further comment.
Is there a connection between the school’s current issues and the ‘Croft bonds’?
School officials haven’t linked the bonds and the financial issues under investigation.
The bonds were an effort to raise money for Croft, which is a for-profit school owned by a limited-liability corporation named Oxford Street Education.
Given sent families an email in August 2024 outlining his investment, a copy of which has been reviewed by the Globe.
He promised the 12.5 percent annual return for four years, and the school would back up the investment with cash in a fund with at least $4 million in reserves.
That interest rate is extremely high, Hotchkiss said.
While many independent schools solicit donations to support capital and construction projects, Given said in an August 2024 email, “we’re taking a different approach that is meant to still enable our families to use their resources to help out our school’s growth, but in a way that can benefit our families financially as well.”
Sherman, the Boston University professor, said that while selling the bonds wasn’t an issue, he questioned how Given could guarantee large returns on loans from families.
Sherman said he did not have access to a prospectus or financial disclosures through the school’s website, but any families who bought the bonds need to do their homework. And the school itself has a duty to its families to ensure its funds were properly administered.
“The financial responsibility is not just because their money is important, but it’s a financial responsibility to use that money carefully and appropriately to provide education for their students,” Sherman said.
What’s next for the Croft school and Given?
An update from Croft was expected to be released by the school’s board Tuesday, and again Friday, the board said last week.
Croft is closed for spring break, and is expected to reopen later this month.
It was unclear Monday whether any regulatory agency in Massachusetts or Rhode Island was looking into Croft’s financial issues.
In Massachusetts, the state’s education department does not oversee private, non-special education schools, according to a spokesperson, who referred questions to the state Attorney General.
Representatives with the offices of attorney generals in both Massachusetts and Rhode Island did not immediately respond for comment Monday, nor did a representative of Rhode Island’s education department.
John Hilliard can be reached at john.hilliard@globe.com or on Signal at john_hilliard.70. Follow him on Bluesky at iamjohnhilliard.bsky.social.