SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
UNO charged with defrauding investors

Monday, Jun 2, 2014

* Sun-Times

The Securities and Exchange Commission on Monday announced it had charged charter school operator UNO with defrauding investors in a $37.5 million bond offering for school construction work by failing to disclose conflicts of interest.

The SEC alleged that UNO Charter School Network had failed to disclose a multimillion dollar contract with a windows company linked to one of its top executives, Miguel d’Escoto.

D’Escoto, resigned in February last year, days after the Sun-Times reported that UNO gave $8.5 million of business to companies owned by two of d’Escoto’s brothers with money from $98 million in state school-construction grant funding.

- Posted by Rich Miller        

  1. - MrJM (@MisterJayEm) - Monday, Jun 2, 14 @ 11:30 am:

    Any comment from the campaign of the charter school champion Bruce Rauner?

    – MrJM

  2. - Reality Check - Monday, Jun 2, 14 @ 11:37 am:

    You mean the Bruce Rauner who gave $800,000 to UNO, which used part of the money to pay bills when its state funding was suspended due to this investigation:

  3. - Anon - Monday, Jun 2, 14 @ 11:37 am:

    UNO has the biggest charter school network in the state. Rauner is the state’s most prominent advocate of expanding charter schools. Consequently, one might think he would have an opinion. But then one might think after 15 months of campaigning that he’d have a budget proposal by now too.

  4. - Bill White - Monday, Jun 2, 14 @ 11:38 am:

    But, but, but . . .

    They only did it for the kids!

  5. - wordslinger - Monday, Jun 2, 14 @ 11:40 am:

    Yeah, but they defrauded investors and lined their pockets with taxpayer dollars for the children.

    So let’s continue expanding charter schools.

  6. - Bring Back Boone's - Monday, Jun 2, 14 @ 11:47 am:

    Ruh Roh

  7. - Frenchie Mendoza - Monday, Jun 2, 14 @ 12:02 pm:

    Like all his other business ventures — and, essentially, everything he’s involved in — he was not aware of any issues. I mean, how could he, right? In this case, his “family charity” simply gave the money and, of course — of course! — didn’t specify how it was to be spent.

    Stay classy, bro!

  8. - x ace - Monday, Jun 2, 14 @ 12:02 pm:

    Multiple choice, is Rauner? :

    A.) Innocent Bystander

    B.) Un-Indicted Co-Conspirator

    C.) Soon to be Indicted Co- Conspirator

    D.) Soon to be Next Governor

    E.) Other:______________

  9. - Bunson8r - Monday, Jun 2, 14 @ 12:08 pm:

    Funny what happens when you run schools without the overly burdensome government to get in the way with its bureaucracy and oversight.

    At one point I was a supporter of charter schools because they seemed to work really well. Once you dig deeper, though, a lot of these schools do well at the disadvantage of the poorest and special-needs students. And a lot of them don’t perform any better.

    Either way, lining your pockets with taxpayer money earmarked for children’s education should be criminal. I hope they take this guy down.

  10. - Bigtwich - Monday, Jun 2, 14 @ 12:12 pm:

    From the SEC press release.

    “According to the SEC’s complaint filed in federal court in Chicago, UNO entered into two grant agreements with the Illinois Department of Commerce and Economic Opportunity (IDCEO) in 2010 and 2011 to build three schools. Each grant agreement contained a provision requiring UNO to certify that no conflict of interest existed when it signed the agreements. UNO was required to immediately notify IDCEO in writing if any actual or potential conflicts subsequently arose. If UNO breached this conflict of interest provision, IDCEO could suspend the payment of grants and recover grant funds already paid to UNO.”

  11. - From the 'Dale to HP - Monday, Jun 2, 14 @ 12:36 pm:

    This is a much bigger deal for Rahm (and possibly Quinn, though it doesn’t look like it will be right now) than Rauner.

  12. - The Prince - Monday, Jun 2, 14 @ 12:42 pm:

    Hardly surprising.

  13. - olddog - Monday, Jun 2, 14 @ 1:04 pm:

    @ x ace 12:02 — “Multiple choice, is Rauner? : …”

    E. All of above.

    Only in Illinois could this be possible.

  14. - Nearly Normal - Monday, Jun 2, 14 @ 2:18 pm:

    Sad. The charter school efforts in this state should all be inspected for such deals going on. There is money to be made on the backs of children who deserve so much more. Greed hurts.

  15. - DuPage Dave - Monday, Jun 2, 14 @ 3:12 pm:

    As noted last week in the comments, charter schools started off as a way to keep our kids separate from their kids. But it has grown way beyond that into a huge money making shakedown operation, where government funds go to enrich private businesses with very little oversight.

    They haven’t done much to the big banks on Wall Street lately, but hurrah to the SEC for finally investigating somebody.

  16. - wordslinger - Monday, Jun 2, 14 @ 3:27 pm:

    –They haven’t done much to the big banks on Wall Street lately, but hurrah to the SEC for finally investigating somebody.–

    Same crew, what with the tax breaks, testing products, contracts, etc.

  17. - Joan P. - Monday, Jun 2, 14 @ 3:58 pm:

    @ MrJM -

    “Any comment from the campaign of the charter school champion Bruce Rauner?”

    No, this is a social issue, and Rauner doesn’t have opinions on social issues.

  18. - Hon IG - Tuesday, Jun 3, 14 @ 1:58 am:

    Wait, isn’t Rangel the same guy that UNO co-Hort , former central committee member and Chicago YR president Angel Garcia selected to speak at their June 9th business meeting? That is until the times exposed them? Great judgement!

  19. - Statesman - Tuesday, Jun 3, 14 @ 11:44 am:

    Love how the tin foil caps come out on this one. This is one charter school network, making this about ALL charter schools is so rabidly off base. Take off your CTU name badges and listen up- Madigan had his hands deep in this one. Follow the bond money trail and you will see. This CEO was a piece of work and used all the great skills taught to him by the great Obi Wan- Dick Daley and Sith lord Madigoon. He just got caught when his ego got the best of him. Find it ironic that in the end UNO means ONE and this all will come down to ONE guy- Rangel and the puppet masters will skate clean.

  20. - Boondoggling - Tuesday, Jun 3, 14 @ 2:35 pm:

    Hon IG- There have been alot of stirrings about the UNO CEO jumping ship to the GOP. With his buddy Rahm and Rauner being so interconnected, there is no time better than the present. Illinois is the land of opportunity for many of these types. Shut down shop at one location and open up under another. With little Bag handlers like some of these Baby-GOP wannabes (Garcia etc) it is all to easy.

  21. - Dillon - Thursday, Jun 12, 14 @ 6:13 am:

    Pre-requisite events are also quite helpful in this regard.
    As technology progresses, cab companies continue to do all they can to keep up
    and to incorporate new equipment into their vehicles.

    When it recognized a pattern, a meaning was assigned.

Sorry, comments for this post are now closed.

* Tribune to put tower up for sale
* They say that like it's a bad thing
* Exelon Just Received A $1.7 Billion Rate Increase Through The Market-Based Capacity Auction
* Point taken. However...
* *** UPDATED x1 *** Byrd-Bennett indicted by the feds
* Yikes, man
* The Credit Union Difference
* SUBSCRIBERS ONLY - Kotowski bash, event list
* Question of the day
* Dimas: "There's a chance we will have to introduce the FY17 budget before we have an FY16 budget"
* Unclear on the concept
* Rhetoric vs. reality
* Supremes snub Illinois Policy Institute appeal
* Aren't we forgetting something?
* True, but...
* Things are tense all over
* Unclear on the concept
* Rep. Leitch won't run again
* SUBSCRIBERS ONLY - Supplement to today’s edition and a Golar replacement update from AlderTrack
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Visit our advertisers...







Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

* Skullcandy intros new XTfree wireless, XTplyo in-ear sports buds
* LG GATE will bring enhanced security levels to the V10
* Netflix raises the price of video streaming for new customers
* AT&T wastes no time making WiFi-call support active, invites iPhone users to get started
* Google privately buys because they were “missing” a few letters
* Sony’s Concept for Android Marshmallow now ready for Xperia Z3, Z3 Compact users
* [Deal] Power A’s MOGA Pro Power controller is discounted at Amazon

* Foot issue to sideline White Sox prospect Hawkins
* After second base, it was no-go White Sox
* Scouting, player development key for White Sox
* Arbitration-eligible White Sox won't put dent in payroll
* Hawk Harrelson's reduced schedule creates opportunity for White Sox...
* Holliday, Ventura connection goes way back
* 2015 in 3 words: Sale, Abreu, inconsistency


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0


* Illinois Gov. Rauner Ends Quarter With $19M in .....
* Democrats Warn Illinois Could Go Broke Without .....
* Top Democrats warn Illinois could go broke in m.....
* Democrats warn Illinois could go broke without .....
* Illinois budget impasse is a blame game with se.....
* Here We Go Again... Rauner and Madigan Resume W.....
* Democrats Say Illinois Will Soon Have No Money .....

* Tribune Media considering sale of landmarked headquarters
* EPA pushes for 'smart thermostats' as way to limit pollution
* Democrats warn Illinois could go broke without state budget
* Chicago cab driver group calls for 24-hour strike
* Indiana man chose as 1st national Pig Farmer of Year
* 2 Illinois congressmen heading to Cuba on Sunday for ag trip
* EXCHANGE: Sudzy Bath and Biscuits in Anna caters to canines
* Group says interest in Chicago Halloween parade growing
* Impact of Chicago Marathon felt from now to Sunday event
* Chicago Democrats to meet to fill seat of late Rep. Golar

* Democrats: Illinois could go broke without budget
* Gov. Rauner ends quarter with $19M in campaign fund
* Prosecutors say former Congressman Aaron Schock is 'grandstanding'
* State Rep. David Leitch won't seek re-election
* Rauner to Democrats: 'Time's up' in budget impasse
* Illinois panel OKs medical marijuana for 8 health conditions
* State Sen. McCarter to challenge Shimkus in Congressional primary
* Rauner increasing pressure on Democrats for budget deal
* Local health departments warn of budget impasse impact
* Illinois panel OKs medical marijuana for pain conditions

* O'Hare bonds avoid Chicago stain in city's biggest offering ever
* Tribune Media seeks to sell Trib Tower
* A champion of women's issues who loves board games
* Cafe Spiaggia got a makeover. Did it need one?
* The problem with using Chicago to make the case against gun control

* Charges come at rocky time for CPS
* Patrick Kane feels ‘really good’ as he hits the road
* Viktor Svedberg to get his chance on blue line
* Aldermen vent frustrations about city’s losing battle against homelessness
* Blackhawks mailbag: Crawford, Teravainen, Dano and more
* Ex-CPS CEO Barbara Byrd-Bennett, 4 others charged in contract scheme
* The Rangers thought the Blackhawks celebrated too much before their game
* Two U.S. reps from Illinois plan Cuba trip
* Clinton’s email server subject to hack attempts from China, Korea, Germany
* Rangers spoil Blackhawks party in season opener

* Boy, 15, killed, at least 3 people hurt in shootings
* Ousted Orthodox bishop sues church leaders
* Indiana University fraternity charter revoked over 'highly offensive' video
* Girl, 16, went missing 2 weeks ago near Washington Park
* Hobart officer terminated after hearing
* Jennifer Hudson on 'Chi-raq' character: 'I have the same story'
* 26.2 miles through Chicago: Interactive marathon map
* Want Cubs playoff tickets? Gas up the car.
* Mortgage rates fall sharply
* Chicago gun laws not as strict as GOP candidates claim

* Bernard Schoenburg: Supreme Court refuses to hear Illinois Policy Institute appeal over press access at Statehouse
* Democrats: Illinois could go broke without budget
* Gov. Rauner ends quarter with $19M in campaign fund
* Prosecutors say former Congressman Aaron Schock is 'grandstanding'
* State Rep. David Leitch won't seek re-election
* George Will: Impeach the IRS director
* Eugene Robinson: Obama is right to be cautious on Syria
* Elizabeth Austin: 'Lawsuit climate' no obstacle to business success
* Rauner to Democrats: 'Time's up' in budget impasse
* Illinois panel OKs medical marijuana for 8 health conditions

* PODCAST: Club Krannert with Bridget Lee-Calfas
* Illinois comptroller talks budget impasse
* UI Solar Farm
* Shoefarmer Tonight!
* Oct. 12 Bob Asmussen Chat
* 10-08-15 News-Gazette Prep Sports Podcast
* Updated: Want to see 'Consumed' here? Let your voice be heard
* Black to have surgery; out 4-6 weeks
* GCMS building evacuated, situation cleared after morning threat
* Updated: U.S. airman who helped thwart French train attack is stabbed

* Tribune Media considering sale of landmarked headquarters
* 'There is no way,' former Oregon cop says regarding Elgin drug arrest
* First deer hunt coming to Illinois Beach State Park
* Medical marijuana dispensary opening next month in Buffalo Grove
* Chicago Shakespeare's warm, irreverent 'Cyclone' worth a ride

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Dems push bill to make college textbooks c......
* Durbin Hopes for “Cooler Heads” In House -......
* Durbin troubled as McCarthey backs out - W......
* Senate Democrats pushing gun legislation, ......

* POLITICO Illinois Playbook: RAUNER-MADIGAN......
* New GOP Opponent Challenges Kirk in Senate......
* New GOP Opponent Challenges Kirk in Senate......

* Dixon police draw criticism over "Gotcha" crime prevention program
* Rauner points to 70 Illinois Democrats supported collective bargaining changes
* Where's Weyermuller? At Wheeling Township GOP Women's 2015 Luncheon
* Police Chief McCarthy says "There's no magic solution" to ending Chicago violence
* REbarcamp gives Illinois REALTORS 10 ways to learn more from each other
* Peoria's Leitch Won't Seek Re-Election
* Get the scoop on Crosby award in Illinois REALTOR®
* Illinois Department Of Human Services Hearing On CCAP Changes
* Barneys Employees In Chicago Push To Unionize, Receive Aldermanic Support (VIDEO)
* Where's Weyermuller? Watching "The View", conversing with Evan Sayet

* Board’s New Rules Will Reduce Risk of Tire Fires and Disease-Carrying Mosquitos
* Illinois Hosts Inaugural Interstate Medical Licensure Compact - Aims to increase health care access through multi-state physician licensure program
* IEMA Announces Elgin Community College Attains ‘Ready to Respond Campus’ Designation - Elgin one of five Illinois campuses to receive distinction
* New Mortgage Loan Interface Increases Efficiency, Compliance
* State Fire Marshal Ushers In Fire Prevention Week - “Hear the Beep Where You Sleep!”

    Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller