Twice the Grieving, Double the Loss - S1-E7
Trivia: The title card is made up of a mass of gravestones. If you pause and look closely, in addition to characters from the show, many of the gravestones are for characters killed by Chucky throughout the movie series, including Eddie Caputo from "Child's Play," Phillip and Joanne Simpson from "Child's Play 2," Warren Kincaid from "Bride of Chucky," Redman from "Seed of Chucky," and several others.
Answer: They were blamed for the death of Jake's foster brother, which was deemed a terrible accident, and they were sent to the reform school as a punishment. Presumably, when they had to leave the reform school given what happened, they were instead given community service as punishment.
TedStixon