Sequoia Faces Turmoil: President, CEO, and CFO All Given the Ax Amid Financial Crisis

Edkey Inc., the Mesa-based nonprofit responsible for Sequoia Pathway Academy in Maricopa, has dismissed two top executives amidst efforts to address ongoing financial issues. Mark Plitzuweit, the president and CEO, and Juan Beltran, the CFO, were terminated by unanimous vote of the corporate board last month.

The move follows significant payroll disruptions. In a Nov. 20 email to over 900 employees, Human Resources Director Laurie Ainge indicated that Edkey “was unable to upload payroll in sufficient time,” according to an anonymous source. This disruption, attributed to severe financial challenges, allegedly involved “intentional misrepresentation” regarding payroll issues, the source claimed.

Financial struggles have also led Edkey to neglect obligations to the Arizona State Retirement System and various vendors while implementing a hiring freeze and conducting layoffs. Sources within Edkey assert that Plitzuweit’s approval of “factoring loans,” a financing method giving cash advances against unpaid invoices, was a key reason for his termination.

Mary Gifford, the corporate board president and acting CEO, confirmed in an interview that the board addressed issues concerning factoring loans at the time of Plitzuweit’s termination. Earlier this year, he had been recognized on the 2024 Phoenix Titan 100 list for his contributions to Edkey, but his presence has since been completely excised from Edkey and Sequoia Pathway’s online platforms.

The reasons behind Beltran’s termination appear less clear but still relate to financial matters. Gifford stated that discrepancies regarding payable accounts were uncovered after Beltran’s ousting. An independent consultant, Becki Krueger, is currently reviewing the auditing processes for the fiscal year ending mid-2024 to address these issues.

Gifford noted that payments owed to the state retirement system have been regularly addressed since Beltran’s departure. Dr. Yovhane L. Metcalfe, the chief academics and operations officer, affirmed that payments to the state retirement system have been made, though she had to confirm specifics with the CFO.

The nonprofit is also negotiating with Accel, Inc. to assume management of its business operations, as mentioned in a Nov. 20 securities filing. Gifford holds a position as an executive vice president at Pansophic Learning, the parent company of Accel Schools, raising concerns about potential conflicts of interest.

While speculation about a possible merger between Edkey and Accel has emerged, Gifford denied any such plans, emphasizing Edkey’s status as a nonprofit. She maintains that there is no intention of being acquired or altered in structure, assuring stakeholders of Edkey’s commitment to remaining a nonprofit entity dedicated to educational excellence.

Gifford expressed optimism for the future of Maricopa’s Sequoia Pathway Academy, stating, “We take our obligations very seriously as a board. We have been diligent in our efforts to navigate these changes.” The leadership transition aims to usher in a more stable financial era for the institution.