Quinn Again Suspends Funding For Charter School Group UNO
By Chuck Sudo in News on Oct 18, 2013 2:00PM
For the second time this year Gov. Pat Quinn has suspended state funding for the clout-heavy charter school group United Neighborhood Organization. This time, Quinn put the final $15 million of a $98 million state grant on hold a day after UNO acknowledged it was the subject of a Securities and Exchange Commission investigation.
Quinn spokeswoman Sandra M. Jones told media “we have not approved any new projects, and we have suspended future capital projects” as a result of an internal review conducted by the governor’s office.
The Sun-Times reported Thursday the SEC is reviewing records from UNO related to $37.5 million the group raised by selling state-backed bonds in 2011. One of the underwriters of those loans was Cabrera Capital Markets. Former UNO board chairman Martin Cabrera Jr., who resigned last month, is owner of Cabrera Capital Markets. SEC investigators are also looking into construction work done by two companies owned by brothers of former UNO executive Miguel d’Escoto, who resigned in February.
Quinn originally suspended funding for UNO in April but restored it two months later, saying he was confident reforms had been implemented with the appointment of Cabrera; Cabrera was board chairman for only 3-½ months before he resigned. When asked why Quinn restored the funding in June, Jones said, “The funding was released because the work had already been completed, children needed to go to school, and the contractors needed to be paid.”
The $15 million was earmarked by UNO to build two more schools. The group has ties to Quinn, Ald. Ed Burke (14th) and Illinois House Speaker Michael Madigan, who sponsored the state grant. UNO CEO Juan Rangel was co-chairman of Rahm Emanuel’s 2011 mayoral campaign.