The Palm Valley School (PVS) was founded in 1952, and since 1992 had been located at 35525 Da Vall Drive, in Rancho Mirage.
As the only private, co-educational, non-religious college-preparatory day school in the Coachella Valley, the school served students from pre-K through 12th grade. In 2025, the 15 graduating seniors compiled 75 college acceptances, and $15 million in merit scholarship grants, according to the PVS website.
While the Palm Valley School website is still active (as of this writing), the school is not: PVS closed its doors for good in June.
Months of Confusion
In early 2026, the PVS Board of Trustees unexpectedly raised the specter of financial issues that threatened the school’s existence. What followed was more than a month of emails—often contradictory—sent by the board to both parents and teachers.
On May 7, the board announced that a transformational gift had been pledged to the school that guaranteed its operations for the next school year, and potentially years to come. Unfortunately, this announcement derailed a fundraising effort mounted by parents to raise the $1.5 million in funds that the board had said, in an April 28 emergency meeting, were required to keep the PVS doors open. Members of a parent-led fundraising volunteer group say they had raised $410,000 toward that larger goal—in less than a day—when they were told of the school-saving donation.
About a week later, the board emailed the parents again. This message included a link to a “frequently asked questions” document, which included the question, “Are we secure financially for the next academic year?” The school’s response was, “No, we are budgeted for 245 enrolled students for the 2026-27 academic year. Our major focus is increasing enrollment to reduce any further challenge.”
Parents and teachers said they reached out to the board for clarification, but none ever came.
According to a timeline created by Ted Bose, parent of a former PVS student and the current head of the new Valley Independent Preparatory Academy (VIPA), questionable financial maneuvers were being made by the PVS board of trustees as early as September 2025. VIPA was rapidly created by former PVS parents and teachers in an effort to replace PVS.
On Sept. 22, 2025, the PVS board received a $2.5 million loan, which was secured by using the school property as collateral. The terms called for repayment over just two years with a balloon payment due in October 2027. The board said this action was needed due to increasing annual operating deficits since 2021; some parents and teachers wondered why the board never asked for help in raising the necessary funds.
What followed over the next nine months was more confusion—and more questionable actions by the Board of Trustees.
Shayami Ristaino was a pre-K teacher and the assistant director of preschool at PVS; she is now the director of preschool at VIPA. The 13-year PVS veteran said there were critical communication problems between the board and the school staff, particularly in May and June.
“The board didn’t approach us to find other ways to keep the school open. They had lied to us about where we were (financially) and about the families and teachers who were trying to raise money to help the school. It was devastating for me. I enjoyed working there.”
Shayami Ristaino, a PVS teacher and parent
“The teachers were having some problems with administration,” Ristaino told the Independent, “and we had reached out to administration to speak to them. We were shut down. Then, we reached out to the board to speak to them about the issues we were having, and they dismissed it. Those were clues that they were not going to do anything about the issues we were facing as far as operational needs. That was another clue that there was something going on that we didn’t know about—but the board would tell the director not to mention certain things to families and staff.”
She said the confusion and eventual closure of PVS led to severe personal and financial impacts on students and teachers alike.
“When it was announced that the school was closing, for me, it was disbelief … that there was no discussion,” Ristaino said, “The board didn’t approach us to find other ways to keep the school open. They had lied to us about where we were (financially) and about the families and teachers who were trying to raise money to help the school. It was devastating for me. I enjoyed working there.”
Ristaino’s daughter was a PVS student, entering middle school this school year. Like other parents, Ristaino paid an enrollment fee for her daughter to continue at PVS.
“I didn’t get it back. I didn’t expect to,” Ristaino said. “It was devastating for her, having to move to a new school, and find a new school. Financially, it was a problem, because this was my livelihood.”
Ristaino said PVS preschool summer camp was under way when the closure was announced
“The poor director was informed that as soon as the announcement was made, she had to shut down her emails,” Ristaino said. “She wasn’t allowed to accept emails from families—and she had to fight (that order), because we still had summer camp in session. She had to respond to certain emails from families regarding if we were still having camp. … She had to direct them to the board, or the CRO (chief restructuring officer, in charge of the bankruptcy proceedings), or the bankruptcy lawyer.”
Ristaino said the four people working at summer camp had to fight to even be paid.
“After working two weeks of summer camp, we realized that they had not asked for payroll timesheets for the hourly staff, so that was a clue that maybe we’re not getting paid,” she said. “After communicating with the CRO, who was in charge of all communication at that point, we were told that they weren’t sure how we were going to get paid. The four of us spoke to each other and decided that we would let the board and the administration know that unless we were paid for the two weeks that we’d been there, we would not be returning to summer camp that following Monday. … That’s when they paid attention to what we were saying and decided to pay us for those two weeks, so that we would return to work.”
Liquidation Bankruptcy
The bankruptcy process is currently under way in the United States Bankruptcy Court of the Central District of California, before Judge Scott Yun.
In a June 24 hearing, attorney Robert Marticello—a partner at Raines Feldman Littrell LLP, who is representing several parents—asked if a group of former PVS parents and teachers could lease at least a portion of the Da Vall property for $20,000 per month, for the new Valley Independent Preparatory Academy. According to the transcript, Judge Yun viewed the plan as a win-win, but without providing a reason, both the chief restructuring officer and the board members eventually rejected the offer.
“It does not seem that those who are in charge of the school were abiding by their fiduciary duty and managing the school in a way to maximize its success, and perhaps other motivations were at play here.”
PVS parent Tiaunia Henry
During that hearing, PVS parent Tiaunia Henry raised questions about the financial management of PVS.
“We understand that, back in August 2024, less than two years ago, the school had very healthy financial reserves of $1.5 million and had set a budget for the next year,” Henry said. “At that time, the school administrators had proposed a budget (predicting) a deficit of $250,000. The school administrator had proposed certain cuts, programmatic or otherwise, to make sure that the budget was balanced. Members of the board were not willing to accept those cuts, and instead instructed that a budget with a deficit be approved. Administration would not do so, and from there, our understanding is that those reserves have obviously evaporated because there is nothing left. We’re in bankruptcy.”
Henry said previously reliable funding sources had not been approached for grant funds in 2026, despite the desperate financial needs of PVS.
“It does not seem that those who are in charge of the school were abiding by their fiduciary duty and managing the school in a way to maximize its success, and perhaps other motivations were at play here,” Henry said.
On July 6, there was a gathering of attorneys for the competing parties, along with various debtor, parent and teacher representatives.
Bose was at that meeting. He recalled: “Under questioning by a parent attorney, acting in her capacity as a creditor, (PVS) board chair Sarah Dunn acknowledged that there was never actually a ‘transformative gift’ as the board’s (May 7) letter to the community had represented. She further confirmed that, when the email announcing the supposed donation was sent, there wasn’t even a signed agreement in place. We later (learned) that what had been described to the community as a gift apparently wasn’t a gift at all, but some form of purchase offer. … What makes this particularly troubling is the timing. A parent-led pledge drive was gaining significant momentum and appeared to be well on its way toward raising the funds needed to help save the school. That effort effectively stopped after the community was told that a major gift had been secured. … I still struggle to understand all of the twists and turns, and how two opportunities to potentially save the school were mishandled.”
Attorney Marticello confirmed via email to the Independent: “There was no binding commitment for the transformative gift. I recall thinking that the messaging to the parents regarding the gift made it sound more concrete and secure than it actually was.”
The school is currently listed for sale on the Coldwell Banker Realty website for $14.1 million.
Moving On
The Independent asked Marticello if parents who paid enrollment and tuition fees for the 2026-’27 school year would ever recoup their money.
“I think if the indications of value for the real property are accurate, the real property could sell for an amount that is in excess of the debts against the school, which would include the claims of parents for the return of their deposits or their tuition payments. If that turns out to be the case, then it should be that all these parents get their payments back,” Marticello said. … “But even if there’s a sale in October, they’re not going to be paid until probably next year.”
We asked Marticello if any of the PVS board members could be held accountable for the demise of the institution.
“If a board member authorizes an improvident loan, or a loan that has no prospect of being repaid, you could argue that is a breach of their fiduciary duty to the company. That’s a claim that belongs to the bankruptcy estate,” he said. “However, the allegation that, ‘You induced me later to pay a tuition, or pay a deposit that I am not getting back,’ could be fraud, or negligent misrepresentation, depending on what the people who induced that payment knew, or should have known, at the time. That’s a claim really that belongs to the individual parents, and could be pursued against the individual board members. I’m not opining that any such claim exists. It’s just there are facts that you could say warrant a further investigation to determine whether there is a claim that should be pursued.”
Marticello added that he and his clients are continuing to investigate. Meanwhile, the former students and staffers at PVS have no choice but to move on.
“My son, who is now 22, attended Palm Valley from first-grade through 10th-grade, and my daughter, who is now 11, attended from preschool through 5th-grade, when the school closed,” Ristaino told the Independent via email. “What made Palm Valley School so unique and valuable as an independent educational option for Coachella Valley youth was definitely the combination of small class sizes, strong relationships, and a genuine commitment to knowing each student as an individual. … PVS was special because it felt like a true community. Of course, I have to add that this is exactly what we hope to continue and to provide for students and families at Valley Independent Preparatory Academy.”
Palm Valley School Timeline
This timeline, compiled by former PVS parent Ted Bose, is based upon contemporaneous communications, public records, meeting notes and related documents.
Sept: 22, 2025: $2.5 million loan secured
Public records reflect that Palm Valley School obtained a $2.5 million loan secured by a deed of trust. The loan carried a 24-month term requiring a balloon payment in October 2027.
Oct. 10: Appointment of head of school
After conducting a lengthy search process, the Board of Trustees announced the appointment of Diego Zaragoza Tejas as head of school.
Jan. 26, 2026: Withdrawal of head of school appointee
The board said Diego Zaragoza Tejas had withdrawn for personal reasons before assuming the role. No further public communications were issued regarding an ongoing search for a replacement.
March: Enrollment commitments
Families began executing enrollment agreements for the upcoming academic year, which required non-refundable enrollment deposits and substantial tuition payments beginning in June 2026.
March 28: Annual gala
Palm Valley School conducted its annual fundraising gala. Donations and sponsorships intended to support the 2026–2027 academic year were solicited and accepted.
April 23: First public notice of financial uncertainty
The board advised parents that it was engaged in discussions concerning a potential partnership or merger with an unnamed international educational organization, and urged families to submit executed enrollment contracts and deposits by May 1.
April 28: Community town hall
The board’s presentation addressed historical finances, debt, enrollment, strategic alternatives and possible Chapter 11 proceedings. It attributed much of the financial condition to prior boards, COVID-related financial impacts and substantial non-repayable COVID relief funding. The discussion referenced construction of a new high school building, declining enrollment following publicity surrounding allegations against a former teacher, approximately $8 million in debt, and variable enrollment data.
May 1: Board update
The board extended the enrollment rescission deadline until May 15, emphasized enrollment, advised that negotiations with a third-party operator remained ongoing, and stated that Chapter 11 restructuring preparations continued in parallel.
May 7: Announcement of transformative donor
The board advised the Palm Valley School community that a transformative donor had committed to providing the financial support necessary to preserve the school. Prior to this announcement, members of the school community had organized an emergency fundraising effort which, in about 18 hours, raised approximately $414,000 toward an initial goal of $1.5 million. The campaign, intended to continue for about two weeks, effectively ceased at this time.
May 15: Frequently asked questions distributed to families
The board distributed a frequently asked questions document addressing concerns regarding the school’s financial condition and future operations. The document represented that Palm Valley School would continue operating independently and reaffirmed plans to reopen for the 2026-2027 academic year.
May 16: Request for clarification Several parents requested clarification regarding the announced donor commitment, the financial structure supporting continued operations, governance issues, and the school’s long-term financial outlook.
May 18: Tuition payment reminders
The school reminded families of their tuition payment obligations for the upcoming school year and requested that payments be made according to selected payment plans. Because of the board’s repeated representations that Palm Valley School would continue operating, a number of families submitted substantial advance tuition payments. The school acknowledged these payments; families continued submitting payments through at least June 3.
June 5: Letter from a group of parents
The group of parents submitted a letter to the board expressing concern regarding the school’s financial condition, the information provided to families, and the uncertainty surrounding the upcoming academic year. The letter requested additional transparency concerning the announced transformative donor and the school’s financial position.
June 5: Announcement of school closure
Later that same day, the board announced that Palm Valley School would permanently cease operations. Families, students, faculty, and staff were forced to make immediate alternative arrangements.
June 8: Bankruptcy notification
The board advised families that Palm Valley School intended to proceed with Chapter 7 bankruptcy, confirming that the school would not reopen and that liquidation proceedings would begin.
