RUTHERFORD, N.J., June 24, 2026 /PRNewswire/ -- Kreyco Inc., a provider of educational services to New York City public schools between 2023 and 2025, today called for an independent investigation into contracting practices, administrative oversight, student protection procedures, settlement practices, and accountability mechanisms within the New York City Department of Education ("NYCDOE"), Community School District 3 ("District 3"), and the Office of the Special Commissioner of Investigation ("SCI").

The request follows testimony and documentation assembled by Kreyco concerning the administration of educational programs, procurement practices, contract management, investigative procedures, and student safety protocols affecting New York City public schools.

"This is not simply about Kreyco," said Sean Kreyling, Founder and Chief Executive Officer of Kreyco. "It is about whether public institutions are safeguarding taxpayer resources, protecting students, and holding public officials accountable when systems fail."

Two Consecutive Years of Approved Educational Services Agreements 

Kreyco provided world language instructional services to schools within District 3 during the 2023-2024 and 2024-2025 school years pursuant to agreements executed by senior district leadership.

Supporting Evidence

• 2023-2024 Agreement Executed by Superintendent Kamar Samuels
• 2024-2025 Agreement Executed by Deputy Superintendent Mariela Graham

According to Kreyco, both agreements expressly contemplated review through established NYCDOE approval channels, including legal and administrative review processes. At no point during the execution, renewal, or implementation of either agreement did Kreyco receive notice that the agreements were improper, unauthorized, or non-compliant.

Payment Structure Implemented with District Knowledge and Participation 

Kreyco asserts that District 3 personnel instructed the company to utilize a specific payment structure involving two organizations after advising that payments to a single non-approved vendor would be limited.

The arrangement was subsequently utilized during the 2023-2024 school year and continued during the 2024-2025 school year.

Supporting Evidence

• Communications with Samuels Regarding $25,000 Cap (2023)
• Communications with Samuels and Graham Regarding Renew Payment Structure (2024)

Kreyco maintains that it followed the procedures communicated by district personnel and that payments were processed through established administrative channels without objection from the relevant offices responsible for oversight.

Concerns Raised Regarding Outstanding Payments & Use of Grant Funds

During the 2024-2025 school year, Kreyco raised concerns regarding substantial past-due payments and the use of grant funds that, based on communications with District 3 leadership, were intended to support world language instruction.

Kreyco's understanding was that funding provided through the Fostering Diverse Schools Demonstration Grants Program was awarded, in part, to support world language programming and that Kreyco's services were incorporated into the grant application. District 3 leadership further represented that these funds could not be used for ENL/ESL programming.

Concerns arose when Kreyco learned that funds it understood to be designated for world language instruction had been misused to support ENL/ESL programming instead.

Supporting Evidence

• Correspondence with Samuels and Graham Regarding Outstanding Payments
• Follow-up Correspondence with Samuels and Graham Regarding Outstanding Payments
• Grant Funding Documentation
• Grants Funds Used for ESL Instruction Documentation

Kreyco notes that these concerns were raised before the company became the subject of increased scrutiny and investigation.

Questions Regarding Timing and Subsequent Actions 

Kreyco believes the timing of certain events warrants independent review.

On March 12, 2025, representatives of SCI contacted Kreyco regarding what was described as a confidential investigation.

Two days later, on March 14, 2025, District 3 terminated Kreyco's educational services agreement.

Supporting Evidence

• SCI Notice of Investigation Dated March 12, 2025
• District 3 Termination Notice Dated March 14, 2025
• Related Correspondence

Kreyco does not presently claim to possess direct evidence establishing coordination between these actions. However, the proximity in timing raises legitimate questions regarding communications, decision-making, and the sequence of events that preceded the termination of services.

Kreyco believes these circumstances warrant independent review to determine whether appropriate procedures were followed and whether relevant agencies acted independently.

Contract Termination and Impact on Students 

Kreyco contends that the March 14, 2025 termination occurred despite contractual obligations that remained in effect and resulted in students losing access to educational programming while financial obligations associated with the agreements remained.

Supporting Evidence

• Improper Contract Termination by Samuels
• Correspondence from Kreyco Legal Counsel to Samuels (No Response)
• Communications Kreyco Counsel to General Counsel Liz Vladeck (No Response)

The company believes these events raise significant questions regarding stewardship of educational resources and decision-making affecting student learning opportunities.

Questions Regarding Central Office Oversight 

Kreyco further questions the adequacy and consistency of oversight exercised by NYCDOE Central Office personnel involved in reviewing, administering, and facilitating the agreements.

According to Kreyco, multiple officials participated in the approval, renewal, implementation, and payment processes associated with the agreements. Despite this involvement, Kreyco alleges that subsequent scrutiny focused disproportionately on the company and its leadership rather than the public officials responsible for authorizing and administering the arrangements.

Supporting Evidence

• Communications with Procurement Personnel
• Communications with Central Office Regarding Splitting Payments (2023)

Student Protection, Accountability, and Settlement Practices 

Kreyco's concerns extend beyond contracting and financial oversight. The company is also concerned about broader systemic issues involving the handling of allegations affecting student welfare and the mechanisms used to resolve such matters.

According to records reviewed by Kreyco, certain cases involving allegations of misconduct toward students were resolved through personnel actions and settlement agreements that limited public transparency regarding the practical consequences of those resolutions.

Of particular concern is a matter in which a NYCDOE employee was investigated regarding allegations involving inappropriate conduct toward students—including conduct that was sexual and racial in nature. According to the settlement agreement, the employee was designated as "irrevocably retired."

Supporting Evidence

• Correspondence from Katherine Rodi Containing Teacher's "Irrevocably Retired" Status

While the phrase "irrevocably retired" may reasonably create the public impression that an individual has been permanently removed from educational employment, Kreyco believes policymakers should examine the practical effect of such provisions and whether they adequately protect students.

Based on information reviewed by Kreyco, the individual retained certifications and remained eligible for employment opportunities outside the NYCDOE. These circumstances raise questions regarding whether current settlement practices provide sufficient transparency to parents/guardians, schools, and future employers concerning allegations involving student welfare.

More broadly, these circumstances raise important policy questions regarding whether existing practices may inadvertently enable the educational equivalent of "passing the trash," whereby individuals associated with serious allegations remain eligible to continue seeking employment involving children despite unresolved concerns or a lack of public disclosure regarding the underlying conduct.

Kreyco believes that any failure to follow established clearance procedures raises serious questions regarding student safety, administrative accountability, and compliance with NYCDOE policies.

Efforts to Preserve Evidence and Cooperate with Authorities

Prior to issuing this statement, Kreyco sought to address these matters through the appropriate governmental channels.

The company:

• Provided SCI with additional documentation that Kreyco believes is relevant to these matters, including materials that were not requested or addressed during the original investigation;
• Submitted preservation letters to the NYCDOE, SCI, and Office of the Chief Counsel to the Mayor and City Hall requesting that relevant records be preserved; and
• Requested clarification regarding whether the newly submitted evidence would result in the reopening of the prior investigation or the initiation of a new investigation.

SCI acknowledged receipt of Kreyco's submission but advised that it could not provide information regarding the status of any investigation. As of the date of this release, Kreyco has not received a substantive response from NYCDOE or the Office of the Chief Counsel to the Mayor and City Hall regarding its preservation requests.

Supporting Evidence

• Document Submission to SCI
• Preservation Letters
• SCI's Acknowledgment & Correspondence Regarding Status of Investigation

Questions Regarding Investigative Consistency and Accountability

Kreyco further questions whether investigative and enforcement standards have been applied consistently across different matters.

The company believes that independent review is necessary to determine whether investigations involving public officials, employees, and private educational providers are conducted fairly, objectively, and without preferential treatment.

Public confidence depends upon accountability systems that apply equally to all parties, regardless of position or institutional affiliation.

Call for Independent Investigation

Kreyco calls upon elected officials, oversight bodies, state authorities, and appropriate investigative agencies to review:

• Procurement and contracting practices utilized within District 3.
• Administration and allocation of educational grant funding.
• The circumstances surrounding the March 2025 SCI inquiry and subsequent contract termination.
• Central Office oversight of approved agreements.
• Student safety and personnel clearance procedures.
• Settlement practices involving allegations affecting student welfare.
• Investigative standards and practices utilized by SCI.
• Policies intended to safeguard both taxpayer resources and student well-being.

Supporting Documentation 

Kreyco has assembled documentary evidence supporting the factual assertions contained in this statement and will make relevant materials available to authorized oversight bodies, policymakers, and members of the media upon request.

About Kreyco 

Kreyco Inc. is an educational services organization dedicated to expanding access to quality instructional programming and supporting schools through innovative educational partnerships.

Media Contact

Sean Kreyling
Founder & Chief Executive Officer
Kreyco Inc.
(201) 310-9727
skreyling@kreyco.com

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SOURCE Kreyco Inc.