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.