Federal investigators are scrutinizing the enrollment and financial practices of two Indiana virtual schools on the brink of collapse.

The attorney for two virtual charter schools alleged to inflate student enrollment and received millions of dollars in overpayments from the state, says new evidence will prove the schools did nothing wrong.

Two virtual schools being investigated by the state could close as early as this September. The school district that authorizes the schools began the process of revoking their charters at a special meeting Thursday night.

The school district overseeing the two schools says families and students have so far been left in the dark about the future of operations.

Two virtual charter schools and the district overseeing them have to pay back millions of dollars in state funding, after the Indiana State Board of Education voted to get money back from the schools at its meeting Wednesday.

Early findings of an ongoing state investigation say the two schools may have nearly doubled their enrollment numbers when reporting to the state and received funding for kids who had left the school. Some moved to different states; in one case, a student had died.

Two virtual charter schools will close after reaching an agreement with their school district authorizer. One plans to close this fall, while the other will close after the upcoming school year.