I would definitely report this to the local media for public awareness.
This is a case of team-teaching being used for personal purposes, never a positive influence in team-teaching projects.
Take away the racial identification detail, and it reeks of "bullying".
That is what makes it wrong.
If I had the specific details, I'd be on the telephone, writing letters, and otherwise, informing the public in general that our taxpayer dollars went to a project like this.
The information was specific in identifying individuals to a large group without evidence of the allegations mentioned in the private meeting.