LIVERMORE (KPIX 5) — Hundreds of Bay Area parents have pulled their children out of two charter schools facing allegations of fraud, and it is creating chaos during this back-to-school week.

The schools are the Livermore Valley Charter School and Livermore Valley Charter Preparatory. Both schools were founded in 2005.

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The charges have made this new school year quite a scramble for some 400 parents who want their kids out.

The state superintendent says the allegations are so serious it’s launching an investigation.

The students are now being blended into Livermore’s public schools and that worries some parents.

“I do worry about it,” said parent Gina Small “There is already an over-population of kids at this school.”

Livermore Valley Joint United School District Superintendent Chris Van Schaack says dealing with the additional students is manageable. The bigger issues are the reasons why parents are pulling their kids out of the charters schools, in the first place.

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“Our job is to make sure the promises they made to the community…they see those promises through,” said Van Schaack.

According to its website, Livermore Valley Charter Preparatory was ranked 366 out of more than 30,000 public high schools across the country in a recent Newsweek survey.

The charter schools are now facing allegations of fraud, misuse of public funds and criminal wrongdoing. They are also accused of not paying teachers, illegally charging foreign exchange students tuition and transferring students to their school in Stockton against their will.

“I know the kids next door are going to pull out because they heard the teachers are leaving,” said parent Joe Fiedor.

One parent who has already pulled their child out spoke to KPIX 5 but preferred to remain anonymous.

“If it’s mainly bad stuff, it’s the truth,” said the parent. “It’s been devastating for parents that worked their butts off for that school. It’s heartbreaking but we had to get out. I hope they can accommodate these kids – they obviously have to go somewhere.”

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Meantime, there will be a public board meeting at district headquarters to address all the additional students, and what can be done save the charters from being shut down .