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Palmetto Youth Academy Ordered to Surrender Assets to Schools District

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News Summary

A legal dispute between the defunct Palmetto Youth Academy and Florence 1 Schools has concluded with a court ruling mandating PYA to surrender its assets. The decision follows PYA’s closure due to compliance issues, including unqualified staff and inadequate academic performance. The court’s ruling includes a financial judgment against PYA and the appointment of a receiver to oversee the asset recovery process. This case underscores the importance of accountability and compliance in charter school operations.

Florence, South Carolina – A two-year legal dispute between the now-closed Palmetto Youth Academy (PYA) and Florence 1 Schools concluded on September 17, 2025, when a South Carolina judge ordered PYA to surrender its assets to the Florence 1 Schools district. The court’s decision came after Florence 1 Schools opted not to renew PYA’s charter due to multiple compliance issues.

Florence 1 Schools had sponsored PYA since its opening in 2005, offering educational services to at-risk students in grades three through six. However, in May 2023, the district decided to close PYA citing significant shortcomings, including fewer than 75% of teachers being certified, the failure to meet academic performance goals, and the inability to issue report cards to parents. According to district officials, this decision underscored a commitment to integrity and accountability in the educational system.

The court’s ruling also included a financial judgment against PYA amounting to $79,343.59, plus additional fees and costs incurred by the district during the legal proceedings. To ensure compliance with the court’s order, the judge appointed John Haas as the receiver, tasked with taking control of PYA’s assets after its closure.

Investigations led by the receiver uncovered financial irregularities at PYA, including unauthorized bonus payments made to its employees following the school’s closure. Reportedly, unusual financial transactions were also identified, such as the transfer of $314,000 to individuals affiliated with the school and an additional $294,000 to others, raising concerns about the school’s financial management practices.

Among the assets in question was a 2019 GMC Yukon XL purchased with school funds but registered in the name of PYA’s director, Yvonne Brown-Burgess. The judge’s order further mandated the receiver to recover all of PYA’s assets, with the exception of $114,400 to be deposited with the Court of Common Pleas.

PYA had sought to appeal the non-renewal of its charter; however, the court dismissed this appeal. The judge’s ruling confirmed that Florence 1 Schools acted appropriately during the charter non-renewal meeting held on May 18, 2023. According to South Carolina law, charter schools are obligated to return all assets to their sponsoring district upon closure.

The receiver’s investigations revealed over $500,000 in funds and a parcel of land that PYA had attempted to transfer to a third party before its charter was revoked. Allegations against Brown-Burgess included mismanagement of funds and efforts to obscure financial transactions to benefit herself or others affiliated with PYA.

In response to the court’s ruling, Brown-Burgess claimed that Florence 1 Schools had manipulated information to create a false narrative regarding the management of PYA. Despite the claims, the court’s decision stands, marking a significant conclusion to a protracted legal battle and emphasizing the importance of accountability in educational institutions.

The outcome of this case serves as a reminder of the responsibilities that come with operating a charter school in South Carolina, particularly in relation to compliance and governance. Florence 1 Schools remains focused on upholding its commitment to provide quality education to all students in its district.

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Additional Resources

STAFF HERE FLORENCE WRITER
Author: STAFF HERE FLORENCE WRITER

FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.

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