A similar case in Maryland resulted in a federal theft conviction.
The charter school told parents Sunday it would close for good this week.
The city has more students and more who qualify for special-education funding.
Until last week, the charter group handed out public transit vouchers. The school district said that wasn’t good enough.
The Orleans Parish School Board had threatened to pull two of Einstein’s charters because they didn’t bus students.
After meeting for hours behind closed doors, Einstein's board announced her resignation and voted to accept it without discussion.
The school district could look for another organization to run the schools or let one start up new schools in their place.
The Y has changed its tune after denying the problem last fall.
The Orleans Parish School Board sued Einstein for failing to provide transportation, but the group argues public transit vouchers are good enough.
There are fewer pre-kindergarten seats in New Orleans than before Katrina.