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* A good friend stopped by the house today, so I missed this one. From the US Attorney’s office. Not exactly a huge surprise. The full indictment is here…
A federal indictment returned today charges BARBARA BYRD-BENNETT with using her position atop the Chicago Public Schools to award lucrative no-bid contracts to her former employer in exchange for bribes and kickbacks.
The 23-count indictment alleges that Byrd-Bennett steered no-bid contracts worth more than $23 million to THE SUPES ACADEMY LLC, and SYNESI ASSOCIATES LLC, in exchange for an expectation of hundreds of thousands of dollars in bribes and kickbacks. The companies agreed to conceal the kickback money by funneling it into accounts set up in the names of two of Byrd-Bennett’s relatives, according to the indictment. A later agreement called for the funds to be paid to Byrd-Bennett in the form of a “signing bonus” after her employment with CPS ended and the companies re-hired her as a consultant, according to the indictment.
The companies, which specialize in training principals and school administrators, provided Byrd-Bennett with numerous other benefits, including meals, an airplane ticket, and seats at basketball and baseball games, the indictment states. Byrd-Bennett also expected to receive reimbursement from the companies for costs associated with a holiday party she hosted for CPS personnel, according to the charges.
The Wilmette-based SUPES and the Evanston-based Synesi are also charged in the indictment, along with their respective former owners, GARY SOLOMON and THOMAS VRANAS. Byrd-Bennett had worked as a consultant for SUPES and Synesi before moving to CPS in May 2012. She was appointed chief executive officer at CPS on Oct. 12, 2012.
The indictment charges Byrd-Bennett, 66, of Solon, Ohio, with 15 counts of mail fraud and five counts of wire fraud. Solomon, 47, of Wilmette, is charged with 15 counts of mail fraud, five counts of wire fraud, two counts of bribery of a government official, and one count of conspiracy to defraud the United States. Vranas, 34, of Glenview, is charged with 15 counts of mail fraud, four counts of wire fraud, two counts of bribery of a government official, and one count of conspiracy to defraud the United States. SUPES and Synesi are charged as corporate defendants with 15 counts of mail fraud and five counts of wire fraud apiece.
The indictment seeks forfeiture from defendants Solomon, Vranas, SUPES and Synesi of all money and property traceable to the violations, estimated at approximately $2 million.
An arraignment date in U.S. District Court in Chicago has not yet been set.
“Graft and corruption in our city’s public school system tears at the fabric of a vital resource for the children of Chicago,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “School officials and city vendors who abuse the public trust will be held accountable.”Mr. Fardon announced the indictment along with John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Nicholas J. Schuler, Inspector General for the Chicago Public Schools.
“The American people expect honest services from their government leaders, particularly those responsible for leading our teachers and caring for our children,” said Special Agent Brown. “The FBI, in conjunction with our local, state and federal law enforcement partners, remains steadfast in its pursuit of those willing to trade the education of our children for their own prosperity.”
“The public education system is harmed when a high-level insider chooses to line their pockets with public funds,” CPS Inspector General Schuler said. “My office is committed to rooting out corruption at any level through joint investigations such as this one.”
The contracts referenced in the indictment were awarded by the Chicago Board of Education, which governs CPS, as part of a CBOE training program called the Chicago Executive Leadership Academy (CELA). One such contract – worth $2.09 million for leadership training of school administrators – was awarded to SUPES within two weeks of Byrd-Bennett’s appointment as CEO, and then extended with an additional $225,000 allocation in 2013. A larger no-bid contract – worth $20.5 million – was awarded to SUPES on June 26, 2013.The indictment alleges that Byrd-Bennett used her position as CEO to lobby CBOE officials on behalf of SUPES and Synesi, and to actively seek funds from the CPS budget to expand the CELA program for the companies’ benefit. Byrd-Bennett directed CPS employees to obtain the necessary approvals to eliminate competitive bidding from the procurement process, and to ensure that the contracts were awarded to SUPES, according to the indictment.
All the while, Byrd-Bennett falsely represented to CBOE officials that she received no financial compensation from the companies, the indictment contends. In reality, Byrd-Bennett maintained an interest in SUPES and Synesi through a secret consulting agreement, which promised to pay her a percentage of the gross proceeds from the contracts she helped to procure, according to the indictment.
The indictment cites an email between Solomon and Vranas on or about Dec. 6, 2012, which contained a prior email discussion between Byrd-Bennett, Solomon and Vranas. In that email, Solomon informed Byrd-Bennett, in part: “It is our assumption that the distribution will serve as a signing bonus upon your return to SUPES/Synesi. If you only join for the day, you will be the highest paid person on the planet for that day.”
In the late summer or early fall of 2013, according to the indictment, Solomon informed Byrd-Bennett that the CBOE Inspector General wanted to review Solomon’s and Vranas’s emails. Solomon said Vranas planned to use a computer program to delete the emails, and he told Byrd-Bennett to delete her emails as well, the indictment states.
Each count of mail and wire fraud is punishable by a maximum sentence of 20 years in prison, mandatory restitution, and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. Each count of bribery of a government official carries a maximum sentence of ten years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The charge of conspiracy to defraud the United States is punishable by a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorneys Megan Cunniff Church and Lindsay Jenkins.
*** UPDATE *** From the twitters…
B3 to plead guilty and cooperate @wlsam890
— Bill Cameron (@billjcameron) October 8, 2015
posted by Rich Miller
Thursday, Oct 8, 15 @ 1:39 pm
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(Looks to the left, looks to the right, leans in, whispers…)
Zopp for Senate
(Walks away)
Comment by Oswego Willy Thursday, Oct 8, 15 @ 1:42 pm
Another great day for Rahm’s education dream team!
Comment by Precinct Captain Thursday, Oct 8, 15 @ 1:48 pm
You really don’t see old fashion graft like this much any more. The only thing missing here is a burlap sack with a dollar sign on it. Old school here!
Comment by Red Ranger Thursday, Oct 8, 15 @ 1:54 pm
I thought she was just getting picked on for steering business to her old employer which is ethically shady, but looks like she was literally taking bribes to deliver contracts and talking about it in emails… Gotta love CPS!
Comment by only-in-IL Thursday, Oct 8, 15 @ 1:57 pm
Where was Stand For Children and the 1%ers when we needed em?
Comment by Anonin' Thursday, Oct 8, 15 @ 2:06 pm
Never ceases to amaze.
You’ve got money, a sweet gig, a position of respect, and you risk it all and shame your family for a few dollars more.
This just in…..
…federales just said at the presser that Triple B will plead guilty and is cooperating.
Tne question becomes, who’s upstream?
Comment by Wordslinger Thursday, Oct 8, 15 @ 2:09 pm
‘”That was a plus, not a negative because she had experience with them,” Zopp said of Byrd-Bennett and SUPES. “So being an employee in and of itself would not raise a bell. To me it was (Byrd-Bennett saying), ‘I work there, I know what they do is good. I did it.’ Me, at the time, I had a lot of respect for her and what she had done so that was a plus.”‘
http://www.chicagotribune.com/news/local/politics/ct-andrea-zopp-tribune-editorial-board-met-0901-20150831-story.html
“And you want to be my latex salesman?” — Jerry Seinfeld
– MrJM
Comment by MrJM Thursday, Oct 8, 15 @ 2:14 pm
Between this and the bonehead SWAP deals, anyone care to wax eloquent as to how Chicago voters are too dumb to elect their own school board?
Comment by Wordslinger Thursday, Oct 8, 15 @ 2:14 pm
Wow – that may be the definition of a revolving door deal. It’s amazing that anyone would put that in writing.
Comment by Archiesmom Thursday, Oct 8, 15 @ 2:14 pm
is it unfair that I assume something similar to this, if perhaps more artfully concealed, lurks behind pretty much every private charter school contract?
Comment by hisgirlfriday Thursday, Oct 8, 15 @ 2:17 pm
With B3 and Ahmer Amad, two awesome appointments by Rahm. and McCarthy is on the hot seat….
Comment by Ravenswood Right Winger Thursday, Oct 8, 15 @ 2:17 pm
Brizzard and BBB–incompetence and alleged corruption. Claypool and his obedience to the Mayor. Vitale and his costly losing gambles. Quazzo and her conflicts of interest. The Mayor’s pet alderman and mayoral wannabe Burns using a parliamentary maneuver to block the consideration of a resolution calling for a statewide moratorium on charter schools supported by 42 of the 50 aldermen.
One costly CTU strike with another looming. A brand new CPS Board that appears to be a fresh deal from the same old deck.
The Mayor wants to stop the outflow of young parents moving out of Chicago to get a better school district, but his efforts and his need for absolute control are having precisely the opposite effect–CPS school enrollment continues to decline.
It’s time for a serious effort in Springfield to create the elected CPS Board supported by between 83 and 93% of Chicago voters in the each of the 37 (out of 50) wards that posed the referendum in the last municipal general election. It may be a slow process but it needs to begin.
There would be a diversity of opinion and a marketplace of ideas in an elected Board.
Comment by James Thursday, Oct 8, 15 @ 2:19 pm
To the Update,
She got her seat on the bus, wonder who B3 will drive that bus over?
Comment by Oswego Willy Thursday, Oct 8, 15 @ 2:19 pm
===Zopp for Senate===
Her press spokesperson called me about 45 minutes before the indictment was announced. I had a friend over and couldn’t talk. By the time I called back, the guy couldn’t talk to me.
lol
Comment by Rich Miller Thursday, Oct 8, 15 @ 2:20 pm
Yeah. Well. This is how corporate-run government works for the people…THEIR hand-picked people, not the taxpayers.
But…..
Look over there! Look, it’s the greedy unions! Look at them! Shame on them with their “I told you so attitudes.”
Comment by Carhartt Union Negotiating Team Thursday, Oct 8, 15 @ 2:26 pm
===Her press spokesperson called me about 45 minutes before the indictment was announced. I had a friend over and couldn’t talk. By the time I called back, the guy couldn’t talk to me.===
“Yeah, uh, thanks for, you know, calling back. Yeah. Yeah, uh, we’re not going to say anything or, uh, yeah… Yeah, we aren’t gonna comment. So. That’s it I guess. Thanks.”
“Zopp for Senate”
Comment by Oswego Willy Thursday, Oct 8, 15 @ 2:26 pm
A lot of bankers made big money when those goofy SWAPS contracts went south.
The brain trust pushing them gambled that the schools’ ratings wouldn’t go down, despite the fact the school board was taking no action on the warnings being issued by rating agencies.
Just sayin…
Comment by Wordslinger Thursday, Oct 8, 15 @ 2:43 pm
B3? Does one of the B’s stand for “no-Bid”?
Comment by nixit71 Thursday, Oct 8, 15 @ 2:48 pm
===B3?===
Buh-Bye Barbara.
Comment by 47th Ward Thursday, Oct 8, 15 @ 2:50 pm
Check out Fran Spielmans tweet on a BBB quote in the indictment:
“I have tuition to pay and casinos to visit.”
Comment by Wordslinger Thursday, Oct 8, 15 @ 2:50 pm
==There would be a diversity of opinion and a marketplace of ideas in an elected Board.==
Why can’t Chicago hedge and have 3 of the 7 positions on the school board elected? The mayor would still have control, but not the stranglehold he has now. Citizens would have at least a minority say. You would only need one person to “flip” to gain majority.
Why does everything have to be all or nothing?
Comment by nixit71 Thursday, Oct 8, 15 @ 2:55 pm
She moved to illinois from Ohio and presto. She became transformed into a corrupted government official. There’s something about Illinois that turns people in government bad.
Comment by Muscular Thursday, Oct 8, 15 @ 3:18 pm
Yesterday, Karen Lewis was quoted on this blog, saying about Claypool, “I don’t have that much to talk to him about ’cause he doesn’t know anything about education.”
B3 spent 12 years as a teacher and 8 as principal. That’s about the same amount of time Lewis spent in the classroom. So they must have had plenty to talk about. Yet the former teacher is indicted and the “technocrat” is not.
Perhaps it’s time to find other common threads upon which to build working relationships.
Comment by nixit71 Thursday, Oct 8, 15 @ 3:23 pm
Three biggest losers here are the other defendants as the first to flip always gets the best deal, the Mayor because it is pretty obvious this deal had conflict of interest and opportunity for profit written all over it yet B3 knew it would never be questioned and even perpetrated the crime on email and Zopp, the tough prosecutor who never asked a single question even though the deal was criticized heavily by many from the very start.
Comment by truthteller Thursday, Oct 8, 15 @ 3:34 pm
==James - Thursday, Oct 8, 15 @ 2:19 pm:
Brizzard and BBB–incompetence and alleged corruption. ==
Brizzard was not incompetent and carries no taint of corruption. B3’s partner in crime and co-indictee orchestrated B3’s arrival here precisely BECAUSE Brizzard wouldn’t play. The minute she arrived in town the undermining of Brizzard began. If the other defendants go to trial, it will all come out. B3’s corruption is not alleged. She’s pleading guilty.
Comment by Anonymous Thursday, Oct 8, 15 @ 3:35 pm
—hisgirlfriday–
I would say its more than charters (campaign chair/resigned charter CEO?). If the kickbacks went into a “re-election fund” instead of B3s pocketbook? Its the reality of this administration.
Comment by truthteller Thursday, Oct 8, 15 @ 3:39 pm
Chicago Teachers Union (CTU) put out a strange press statement that it “wishes Mrs. Byrd-Bennett well in her legal battles.” What’s up with that?
Comment by Chicago parent Thursday, Oct 8, 15 @ 3:49 pm
Amad came from Ohio as well.
Comment by Anonymous Thursday, Oct 8, 15 @ 4:12 pm
= This is how corporate-run government works for the people…THEIR hand-picked people=
B3 definitely went corporate, which is not in and of it’s self evil, but that world functions very differently than the public sector. And that isn’t always a good thing.
=Yet the former teacher is indicted and the “technocrat” is not.=
I am not sure you really have a what you think you have there. Neither one is inherently more honest than the other if that is where you are headed.
Comment by JS Mill Thursday, Oct 8, 15 @ 4:20 pm
Muscular, Nixit, I guess you both gave logic the day off.
Comment by Wordslinger Thursday, Oct 8, 15 @ 4:28 pm
What does she have to offer the feds for a plea agreement?
Comment by Wensicia Thursday, Oct 8, 15 @ 4:38 pm
@JSMill - Lewis seems to preface her working relationships w/ CPS management based on their experience in the classroom. The fact that her “better relationship” was with a former teacher who just happened to be indicted is more of a reflection in how and whom Lewis is willing to work with than the teaching profession itself. Technocrats and all.
Comment by nixit71 Thursday, Oct 8, 15 @ 4:48 pm
Another public official, probably a decent teacher and administrator in the past, loses touch with reality. Seems to be an occupational hazard.
Comment by Cassandra Thursday, Oct 8, 15 @ 4:56 pm
It Is IL, number who knows? Lost count. Apparently, in IL we NEVER learn. Just think we’re smart enough to get it by everyone. Not like we haven’t had history. Go figure.
Comment by sal-says Thursday, Oct 8, 15 @ 4:57 pm
Breathtaking. Simply beyond understanding. Did BBB think she was immune? Shielded? If so, by whom? Staggering.
Comment by dupage dan Thursday, Oct 8, 15 @ 5:02 pm
wordslinger…that was hilarious. get em
Comment by flea Thursday, Oct 8, 15 @ 5:17 pm
=The fact that her “better relationship” was with a former teacher who just happened to be indicted is more of a reflection in how and whom Lewis is willing to work with than the teaching profession itself=
I do not have much recollection as to what Lewis has said about B3 in the past. I am not her defender either.Were I the CPS CEO, I doubt she would have many nice things to say about me. I just know that there is no direct correlation between teachers or technocrats and dishonesty or honesty.
Lewis’ comments seem pretty poorly timed given today’s indictment. More comical to me than anything about her judgement. The thing she said that sticks with me the most is calling Emmanuel “murder mayor”. Like him or hate him I seriously doubt that he wanted that as an outcome. It is that over the top type of stuff that is killing the public discourse and worsening the entrenched political environment that exists.
Rich talked about toning it down and I took that to heart. I hope the pols that read this blog give that a serious think as well.
Comment by JS Mill Thursday, Oct 8, 15 @ 5:18 pm
Teachers didn’t stand BBB. She was brought in to sell unpopular moves like the school closings. However, nothing she did was unknown to the board, which is rife with conflict of interest. Business was steered to AUSL by David Vitale in the same way. Even the toxic swaps were negotiated in the same way. BBB just fell out of favor and lost her protection. Cue Captain Renault, there’s corruption in Rahm’s CPS.
Comment by Carhartt Representative Thursday, Oct 8, 15 @ 6:17 pm
For-profit means just that–education related or not. And folks, these people will do anything to advance their agenda–profit, that is.
Comment by Anonymoose Thursday, Oct 8, 15 @ 7:28 pm
After Ahmer Amad and now Bennett being indicted, McCarthy is on the hot seat.
Comment by anon Thursday, Oct 8, 15 @ 8:06 pm
Another Rahm appointee with sticky fingers! The amount of profiteering from this crew is shameful.
Comment by Different Strokes Thursday, Oct 8, 15 @ 10:45 pm
I suspect that many of the comments on here are coming from Chicago, but I could be wrong. But the rest of us know that Emmanuel’s situation is very unique.No one anywhere in the state of Illinois except Chicago would even remotely think of blaming their mayor if there was a problem with their local schools or school board. There is no relationship between the two anywhere except Chicago.
Effectively what Mayor Daley said to state officials some 20 years ago when he came down to talk about school reform was: “I get blamed for whatever goes wrong with the schools but under the current board arrangement I have too little control. If I’m going to be held responsible then I should have control.” Seemed fairly reasonable, so he got control and effectively got a big chunk of CPS’s state education aid block granted. He had control of the school board and a great deal more flexibility in how he used his state aid funds than any other district in the state.
I think he had a valid point. Either get the Mayor out of any role with CPS and let the board be elected, or let the Mayor retain control over the board if he is to remain responsible.
Comment by steve schnorf Thursday, Oct 8, 15 @ 11:23 pm
Chicago is the only district with an unelected school board and an unelected community college board of trustees. Most, but not all, park districts in the state have elections to choose commissioners. All of these positions are filled by mayoral appointments in Chicago, so the mayor deserves blame when kleptomaniacs are appointed.
Comment by After Further Review Friday, Oct 9, 15 @ 6:54 am
Schnorf, small point, but Daley and all mayors always had control over the school board.
But from 1980 to the mid-90s the Chicago School Finance Authority controlled all the money; signed off on budgets and contracts, issued debt, set tne levy.
If I recall, it was a five-person board with three appointments by the governor and two by the mayor. It was created as part of deal for a state bailout of CPS for a financial mess that came to a head under Bilandic and Byrne.
If there’s to be any Springfield bailout for CPS today (that sounds funny, given the state of state finances and politics), I imagine a similar arrangement would likely to be the price, for starters.
But since 1995 or so, Chicago mayors, Daley and Emanuel, have had complete control of CPS finances and operations. The buck stops with them.
Comment by Wordslinger Friday, Oct 9, 15 @ 7:04 am
Illinois State lawmakers must refuse to give the $$500 million $$ Rahmbo wants for Chicago schools Byrd’s corruption shows the is even more waste in Chicago public schools
Comment by better days Friday, Oct 9, 15 @ 8:49 am
This just stereotypes every politician the best money can buy
Comment by Anonymous Friday, Oct 9, 15 @ 8:55 am
Word, that’s what I thought I said about what the Mayor got when he came to Springfield in “95. Looked back, boy I said it poorly. Up ’til then, he had to select from list nominated by someone-local school councils, maybe?
Comment by steve schnorf Friday, Oct 9, 15 @ 12:03 pm
Schnorf, I’m not sure about that part.
But keep your head down if that School Finance Authority concept comes back. You don’t want any part of that.
I covered that crew in some tough times. They needed danger pay — seriously — as they were fitted for the jacket for every tough decision.
They held public meetings in a law firm conference room in the Sears Tower and the angry parents were way up close and personal.
Comment by Wordslinger Friday, Oct 9, 15 @ 12:12 pm