A recent horror story about educational outsourcing can be found here: Fake special ed vendors stole $1.5 million from city, probe finds
Here is an excerpt from the article, but we recommend clicking through the link to read the piece in its entirety - very worthwhile and informative:
Two men used shell companies and forged signatures to charge the Department of Education for sign language services that students didn’t need, an investigation found. The fraud ran for more than two school years and cost the city at least $1.5 million. The brazen scheme involved claiming payment for services to students who were not enrolled in city schools and, in some cases, offered as proof that services had been provided the forged signatures of people who were retired or even deceased. In one instance, the city paid more than $100,000 over an eight-month period for a student who had left the school system a decade earlier. In another, the city handed out $187,200 in payments that were authorized by someone who had died “several years ago.” Today, authorities arrested one of the men involved, Nelson Ruiz, while his collaborator, William Cruz, remains at large, said a spokeswoman for the Special Commissioner of Investigation, which conducted the probe.