State sues Rise & Shine school owners, alleges fraud

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The Arizona Attorney General’s Office announced May 30 the filing of a lawsuit against, Rise and Shine Exceptional Services LLC owners Desiree Truett and her husband Timothy Truett.

Tim Truett, a former Maricopa Police sergeant, is the chief of police in the city of Globe, Ariz.

The consumer fraud lawsuit alleges Rise & Shine “defrauded parents and donors by falsely claiming the school was a non-profit, tuition-free school when it did, in fact, charge tuition ranging from $2,000 to over $26,000 per year and it was never a non-profit corporation.”

The school was established in 2011 and offers non-traditional educational services to gifted children and children with special needs.

The report states Desiree Truett told an undercover investigator, “I’ve never taken a penny from a parent. Everything we do is free.”

Government-funded Empowerment Scholarship Accounts were used by parents to pay for tuition at the private school, according to the Attorney General’s Office.

The Attorney General contends the Truetts claimed the school misrepresented its status as a for-profit school to parents, local business owners and the community.

In 2012 the school solicited donations from the community to host a prom for its students (see related story).

The report stated: “Defendants also allegedly misrepresented the school’s tuition-free status in connection with pleas for donations and other fundraising efforts. Rise & Shine frequently asked local businesses and community members for donations. By claiming that it was a non-profit school that never charges tuition, Rise & Shine was allegedly able to generate tremendous community goodwill and support and received numerous and frequent donations of goods, services and money.”

“The use of deceptive acts or practices or misrepresentations in connection with the sale or advertisement of goods or services is unlawful under the Consumer Fraud Act,” Attorney General Tom Horne said. “Our Office will continue to take action against anyone who engages in such unlawful acts.”

Desiree Truett said the lawsuit is a result of a misunderstanding after the school opened in 2011, at which time it had 30 to 35 gifted and special-needs students in grades Pre-K through 12.

“During our first year of operation, the first year that the Empowerment Scholarship Program was available, our students’ paid their tuition through the ESA program or an STO program. The first year of any business is a huge learning curve, so, with that said, it was my first year in business but also my first year dealing with the Empowerment Scholarship.

“This case really comes down to semantics. I did not consider accepting a scholarship as charging tuition. However, as soon as I was made aware that the ESA grant should be considered tuition, I corrected any issues on my own without the AG office asking me too.”

InMaricopa.com reported in 2012 that Desiree Truett and a parent at the school, Cherish Love, testified at the Arizona Legislature in support of a bill that expanded the Arizona Empowerment Scholarship Accounts program (see related story).

Love said at the time she volunteered 30 hours a week at Rise & Shine and planned to go door-to-door to raise money for the school.

***ADVERTISEMENT***The lawsuit seeks restitution to parents and donors, repayment of illegal profits, civil penalties, costs and attorneys’ fees.

“It saddens me that the Attorney General’s Office is spending so many resources on rookie business mistake that I fixed immediately,” said Desiree Truett. “I'm afraid there isn't anything exciting to this story.”