Chicago’s largest charter school operator is UNO. At the time of the fraud UNO’s boss was Juan Rangel, Rahm’s 2011 campaign chairman.
To the surprise of absolutely no one, the United Neighborhood Organization, was charged today with defrauding its charter school investors.
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.
The average working man or woman in Chicago would not be surprised at this point to read that the organization once headed by the campaign chairman for Rham Emanuel would be charged with something.
However some might be surprised that things like charter schools have investors that can be defrauded.
But that’s because they haven’t been paying attention.
Rahm, Rauner and Rangel want schools to be run like a business.
It is just that the business they are thinking of is Enron.
Where is the Justice Department? Why not federal indictments?
How were Rahm and Squeezy involved?
Fred Klonsky 
“However some might be surprised that things like charter schools have investors that can be defrauded.”
We should be thankful for that – it’s what ultimately will bring charter schools down. God knows the powers that be care not a whit if we mere citizens are defrauded.
It had to end like Enron because its a silly idea for a business So take out the popcorn because these Enron High Schools are not going to put anymore public schools out and you can wrap Enron High around Sqeezy ,Rahm and Rauner , I doubt they were involved in these specific crimes well really civil fraud here (BTW Fraud is a tough charge either criminal or civil so SEC must really have the goods) but they were all in bed with them Sort of like Bush and Enron
I think “Enron Schools” and “Enron High Schools” is a brilliant phrase to use and repeat when describing Charter Operators! It really encapsulates the fraud in a quick sound bite that can be repeated over and over. I hope my union brothers and sisters, along with several unions’ PR and political directors pick it up. Kudos other David.
Thanks . I just don’t think it makes sense as a business model and neither did Enron I just don’t see them lasting wasting taxpayer money on them also proves there is no crisis that needs police powers
The Tiny Dancer wanted to avoid responsibility for the public schools because he could not fix them and he wants to be the President of the United States. He can’t stop the shootings either and that is driving him crazy. He saw the greedy business men drooling over the profits they believed could be made in the phony Charter School game. So the Dancer thought he could easily unload the schools. Bust the Teacher’s Union and the businessmen could hire teachers for peanuts. It all looked really easy. The Mayor is not a good person. He and his Hollywood pals can make all the sugary videos they want. He will still be the evil, ambitious rat that he has always been.
You also realize that public school districts have investors too right? And that they have also been charged with securities fraud. Example -> http://www.reuters.com/article/2013/07/29/municipals-sec-westclark-idUSL1N0FZ14L20130729
This is not JUST a charter school issue
I know now. Thanks.
We should not surprised.. just imagine what percentage of politicians that are not on the take or corrupt crooks or simply full of BS! miniscule!
Fred, having worked on district & charter issues for decades, I’m always dismayed when greedy, unethical people defraud the public, educators and students. There is no excuse, period.
At the same time, bonding for school buildings, whether district or charter, deserves a lot more attention. Huge profits are available which do cost public dollars. Perhaps you or others will look into this.
This is how it is played when finance is involved: corporations are people. So the SEC charges “UNO Charter School Network” full stop. No individuals are charged. Its as if the corporation and the paperwork got together and decided what to do and say.
Yes, if the charges are proven, people deserve to pay huge fines and either go to jail or provide major community service. There should be huge consequences for individuals, as well as UNO. But I’m ambivalent about taxpayers paying for non-violent criminals to be put in prison when we have so much better uses for public dollars.
Sorry, Joe. But if by non-violent criminals you mean Wall Street Banksters who stole billions and charter school hustlers who stole (in just UNO’s case alone) or manipulated millions, why should their behavior go unpunished. Should we now release Bernie Madoff because he committed a non-violent crime?
Fred, we have many people in prison for relatively minor, non-violent drug charges. Among other things, I’ve promoted “restorative judge”. I think is a more constructive approach for many crimes than putting people in jail.
I think we have WAY too many people in prison. I’d be fine with most non-violent people found guilty of drug charges doing community service and paying fines.
Yes, this applies to some folks like Madoff too. He should pay huge fines and have virtually all assets removed. But I’d rather see him out, doing community service than having the public pay to have him in a “very soft” jail.
I agree about too many people in prison. Too many poor people. Too many people of color. In Chicago the CPD arrests Black people for marijuana possession at a ratio of 4 to 1 as compared to white people for a misdemeanor offense. 18,000 last year.
I don’t agree about Wall Street Banksters, all but a few having avoided arrest or trial, let alone jail time.
We agree about too many people in prison, especially too many people of color and low income. I’m spending no time advocating for Wall Street banksters. You and I agree that far too many avoided arrest or trial, fines or jail.