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It's not rent seeking, it's a conflict of interest.

Paying teachers and administrators for services creates a conflict of interest when it's time to grade papers, recommend students for advanced courses, or graduate students.

That is clear, but from the limited information given by OP it seems that the tutored students are not enrolled in that class any longer: "While they are not allowed to be his current students, he has a very parasitic relationship with them. [...] He charges a very local high rate ($100+ per hour) to students that he has taught math to"

Tutoring strictly past students seems to be a way of eliminating much of the glaring conflict of interest that you describe. (A smaller one remains yet: the possibility of doing a worse job of teaching the class, with the understanding that students who wish to be more rigorously prepped for post-secondary studies can just take the expensive tutoring.)

Other than that object, I don't see what's wrong with students who are no longer in that class paying for more tutoring (probably so they are better prepped for the entrance exams to those aforementioned post-secondary schools?)

He is the number one recommended tutor that they all go to when they are struggling in the program.

There is supposed to a list of people/companies that the guidance counselors recommend, but that's not the case with this school.

They only give out his number. Honestly, he shouldn't even be allowed to tutor these students. He is an administrator in their program, it's a huge conflict of interest.

It's not rent seeking, it's a conflict of interest.

Like giving away needlessly complicated software and charging for support

Such as? (Genuinely curious)

SAP. Oracle's applications. Some of what IBM sells. Etc

SAP, Oracle or IBM software is hardly give away. They will cost you an arm and a leg to get and then the rest of your body for maintaining them.

I thought gaius may be referring to free or open source software?

Isn't it often the proposed model for making money from open source?

Tutoring isn't rent-seeking.

It seems like people use "rent seeking" interchangeably with "making money in a way I don't like".

No, in this case it is rent seeking, or at least presents the possibility that it is unethical rent seeking. If he was tutoring at a different school that would be okay. However tutoring at his own school where he has influence on the curriculum gives him the possibility of creating a curriculum where it is impossible to pass without also paying for tutoring from him. They of course banned the obvious case where he is the teacher; but the less obvious case where someone else is a teacher, and that teacher isn't allowed (in some way) to present the material clearly is allowed.

The subtleties of ethics are hard.

Edit, as the other poster pointed out, rent seeking is probably not the correct term. I stand corrected in that.

But it was written that these are former students. It sounds as if the tutoring could be preparation for entering those post-secondary schools. Perhaps the teacher is highly recommended because he delivers results.

The possible conflict of interest is that he might do a poorer job of teaching in class. ("Those who want to be properly prepped can later join my $100/hour program.")

He isn't highly recommended because he is any good. He is recommended because of his position within the school and program.

He has a special (and corrupt) relationship with the guidance counselors where they only give out his number when a student is struggling in a higher level math class.

This is only one of the issues I have with this charter school. It's really run like a pyramid scheme where almost 80% of the initial freshman fail out and end up having to transfer back to their home schools with bad grades.

Given how the school is run, the corrupt relationship with this teacher isn't surprising to me, but it is a pretty gross situation to witness.

He is not a private tutor, he is their teacher and an administrator of the program which they are in.

It's 100% a conflict of interest and a way to take advantage of his position in the program.

Many parents do find other tutors for cheaper, but he is the programs #1 referral for when a student is struggling in math and physics.

This is what happens:

Student is struggling in math class, so they meet with guidance counselor. Guidance counselor recommends hiring this teacher to tutor them.

He is ALWAYS recommended. Not because he is good, but because he is first on the list. Hell, I don't even think there is anyone else on the list.

This is a corrupt relationship as the teacher takes advantage of his privileged position in the school.

Rich parents? At a charter school? This does not comport with my (perhaps limited) experience. Besides, $100/hr is obviously excessive. Lots of physicians aren't remunerated at that rate. If parents are paying that for tutoring in high school math, there is something wrong with the situation. (E.g., why isn't the teaching done during class?)

The commons that the tutor exploits in this case is the natural authority that comes from managing the math department. That authority doesn't belong to him. It was entrusted to him, and he abuses it. His words, when disparaging rival tutors and complimenting himself, carry more weight with parents than they would if he were not in that position.

OP doesn't reveal anything of the sort that the teacher disparages other tutors. The students being tutored are no longer enrolled in class. Quite possibly (I here also speculate) the recommendations come from results: "My kid got extra tutoring from Mr. Smith after graduating, and aced the entrace exams at Fancy Pants School! It was $100/hour but worth it!"

He is the schools #1 recommended tutor. His number is given out by all the guidance counselors when the student is struggling in a math or physics class.

Honestly, I don't even think other private tutors/companies are even on the list. They just give him all the referrals.

He really shouldn't even be on the referral list, let alone the ONLY one they use, given that he is an administrator of these students in the math + science program.

The term rent seeking is probably misapplied, but it's clearly a conflict of interest and the type of corrupt relationship that we need to fight against.