UNO’s Rangel gets a slap on the wrist for charter scam.

juan-rangel1

What happens to federal investigations of Chicago corruption?

Whatever happens when you read, “The feds are investigating?”

Yesterday Rahm Emanuel’s campaign chairman and former United Neighborhood Organization boss, Juan Rangel, got a slap on the wrist from the Securities and Exchange Commission for engaging in securities fraud.

UNO was one of the largest charter school operators in the state of Illinois. Money isn’t made by charters by charging admission. Gobs of money are made through contracts, kick-backs and bond sales to investors.

In the settlement with the SEC, Rangel got away with paying ten grand in exchange for admitting to doing nothing wrong.

Rangel gets to pay the ten grand in quarterly payments of $2500 dollars every couple of months.

When he resigned from UNO he received a severance package of nearly a quarter million bucks.

$2500 a quarter?

That probably equals his lunch tab.

When Rangel ran UNO it was reported by the Sun-Times as having  spent more than $60,000 for restaurants on his American Express “business platinum” card including thousand dollar tabs at Gene & Georgetti, the Chicago steak house.

Most of the money that Rangel was accused of scamming came from a state grant greased by Governor Pat Quinn and Speaker Michael Madigan.

UNO received all but $15 million of the $98 million provided by the state.

7 thoughts on “UNO’s Rangel gets a slap on the wrist for charter scam.

  1. The fine and not admitting any wrongdoing is what the SEC does when they do not have a case. They go away and let you stop paying legal fees and they get a little $.

    Clyde

  2. That’s how it works.
    What about BBB?
    Haven’t heard anything in the news. She’ll probably get a slap on the wrist also.
    But the teachers are money hungry !

  3. Good point regarding federal investigations. Mayor Daley had a bunch of them during his administration. Nothing ever became of them, at least regarding Daley being accused of any corruption.

    Remember too, that the Feds are currently investigating Hillary. I wonder how much money is being greased to the right people and how many favors are being promised to keep that investigation low key, and eventually hushed. Supposedly Snowden has some heavy evidence on her wrongdoings. I hope if he does, that it gets put out there somehow real soon.

    • Don’t count on it. It is unlikely that President Obama would have been allowed to endorse Hillary if there was any possibility of a federal indictments.

  4. Pingback: Fred Klonsky: Juan Rangel of UNO Gets a Gentle Slap on the Wrist for Fraud | Diane Ravitch's blog

  5. Pingback: Ed News, Friday, June 24, 2016 Edition | tigersteach

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