Clout-Heavy Charter School Group UNO Target OF SEC Investigation

By Chuck Sudo in News on Oct 17, 2013 3:30PM

The clout-heavy and scandal-ridden charter school group United Neighborhoods Organization acknowledged they were the subject of an investigation by the Securities and Exchange Commission to determine if they violated any federal securities laws.

The Sun-Times reports the SEC requested all documents involving state-funded school construction work done by companies owned by two brothers of former UNO executive Miguel d’Escoto. The two companies, Reflection Windows Co. and d’Escoto Inc., were paid $8.5 million from a $98 million grant the state awarded UNO. Miguel d’Escoto resigned from UNO in February but Reflection Window continues to receive business from the organization.

The SEC is also investigating $37.5 million in state-backed loans UNO received in 2011. One of the underwriters of those loans was Cabrera Capital Markets, a company owned by Martin Cabrera Jr., who resigned as UNO board chairman last month. Cabrera was on the board for only 3-½ months.

Gov. Pat Quinn briefly suspended funding for UNO in April. The group has ties to Ald. Ed Burke (14th) (who lobbied Quinn to restore the funding) and former mayoral candidate and Chicago School Board President Gerry Chico. Former UNO chairman Juan Rangel, who resigned in May, was co-chairman of Rahm Emanuel’s 2011 mayoral campaign yet still retains his $275,000 salary as the group’s CEO.