The Frazer School’s new leadership takes legal steps to secure finances and school’s future 

Press release from The Frazer School

GAINESVILLE, Fla. – Today, The Frazer School filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Northern District of Florida, as part of a coordinated effort by the school’s leadership to resolve financial issues created by the school’s former owner, who is no longer affiliated with The Frazer School. 

The Frazer School’s leaders said filing for reorganization is the best route to ensure loans, made by parents of students and other supporters of the school, are safe, to secure ownership of the school facility, and to protect the school’s future. Earlier this week, the school’s lawyers sent a civil theft demand letter to James Schrader, his wife, Rachael Schrader; and the Schrader’s Newberry Christian Community School, Inc.  (“NCCS”), seeking repayment of more than $5 million. 

According to the demand letter, The Frazer School raised more than $5 million from parents and other benefactors to help purchase the school’s facility, but that money was transferred to the Schraders’ personal accounts and accounts in the name of NCCS. The Schraders and NCCS then used that Frazer School money to help purchase The Frazer School facility, placing title in the name of NCCS, and then charged The Frazer School rent. Schrader resigned last year as owner of The Frazer School and agreed to transition all holdings, but has failed to do so. The Chapter 11 bankruptcy filing will help The Frazer School gain clear ownership of its facility and support the recovery of other funds. 

“The fiduciary responsibilities entrusted to Mr. Schrader were violated by his actions of putting greed ahead of our students,” said Will Frazer, school co-founder. “We work tirelessly to provide a stellar education and steward trust within our community. Mr. Schrader’s actions do not reflect the culture or mission of our school, and we look forward to the Bankruptcy Court’s assistance in resolving this matter so we can move forward and fulfill our promise to our students, families, staff, and fiscal partners.” 

Since Schrader’s resignation last year, control of The Frazer School was transferred to a new three-person volunteer board, which took swift action to identify and rectify financial issues created by Schrader. The new board plans to transform the school into a nonprofit. The Frazer School is committed to continuing operations for the 2026-2027 school year without interruption to educational services, employee compensation, or day-to-day operations. This new corporate governance structure will strengthen oversight, enhance transparency, and improve operational fidelity for long-term sustainability, allowing the school to fulfill its mission.  

“We are confident that the judicial process will demonstrate that the Schraders and NCCS took from both The Frazer School and its parents and will restore property and other economic rights they attempted to take from the school community. Fraudsters will be held accountable irrespective of who they are or their professed religious affiliation. These matters are now in the Bankruptcy Court’s capable hands, which will enforce the school’s legal rights,” said Steven Berman, pro bono counsel for The Frazer School. “This case doesn’t jeopardize the school or its investors and instead provides a mechanism to ensure the school’s property rights are restored and operational success.” 

”Chapter 11 will be a good thing for our school,’’ Frazer said. “It allows us to continue operating without the threat of the problems Mr. Schrader created. I have not felt this good about our future since the beginning of the last school year.”