A mock "slave auction" held at a private school in Bronxville, New York, in March had a profoundly negative effect on the students, especially African-American students, the NY Attorney General’s office has found.

In an official statement, Attorney General Letitia James said that regardless of race, every young person deserves the chance to attend school free of harassment, bias and discrimination. “Lessons designed to separate children on the basis of race have no place in New York classrooms, or in classrooms throughout this country.”

The Attorney General’s office had received a complaint that a teacher at a private Lutheran school in Bronxville had twice conducted reenactments of a slave auction, as part of social studies classes at two fifth-grade classes.

“The investigation sought to determine whether the school’s policies, curriculum, oversight of teachers and practices for student enrollment and staff hiring either discriminated against students on the basis of race, or created a hostile environment for students of color at the school,” the statement said.

The Attorney General’s office found that the teacher, Rebecca Antinozzi of Chapel School, had asked all the African-American students in the classes to raise their hands. The students were then instructed to walk out of the classroom and stand in the hallway.

“The teacher then placed imaginary chains or shackles on the students’ necks, wrists and ankles and had them walk back into the classroom. The teacher then instructed the students to line up against the wall, and proceeded to conduct a simulated auction of the African-American students in front of the rest of the class.”

Reports had said white students in the classes were asked to bid on the black students while the teacher acted as an auctioneer. The teacher allegedly started a bidding process and told a student, “You’re a wealthy white man” and started the bidding at $300.

Because of the reenactments, the school terminated the teacher’s employment. The investigation also found that parents had complained about the school’s lack of racial sensitivity. Moreover, the school failed to take steps to address the concerns.

According to the findings of the AG’s office, The Chapel School is required to make significant changes to its approach to diversity and inclusion. The school is, according to the official statement, also to increase minority representation among the teaching faculty.

The school told NBC News that it had taken immediate corrective action after the mock auction incident. The principal said the school accepts responsibility and has reached a timely resolution.

Principal Michael Schultz had at the time the controversy broke apologized for the incident and said a third party was conducting an independent review. “The reported racial insensitivity is unacceptable and we do not condone any action that demeans anyone,” Schultz had said.