UNO Chief Juan Rangel Steps Down

By Chuck Sudo in News on Dec 6, 2013 3:10PM

Juan Rangel, chief executive officer of the charter school group United Neighborhood Organization, has stepped down amid an ongoing scandal involving how contracts tied to a $98 million state grant were doled out and an investigation by the Securities and Exchange Commission into $37.5 million in state-backed loans the group received in 2011.

Rangel’s resignation is effective immediately and, according to UNO interim board chairman Freddy Santiago, was “by mutual agreement.” Per the Sun-Times, Santiago added:

“We are thankful for Juan’s leadership over the past two decades. We wish Juan the best in the next phase of his career.”

Rangel shouldn’t have a problem finding a soft landing elsewhere. UNO has ties to some of the most powerful politicians in Illinois including Gov. Pat Quinn, Illinois House Speaker Michael Madigan, Ald. Ed Burke (14th) and Mayor Rahm Emanuel, whose 2011 campaign Rangel co-chaired. He currently sits on the Public Building Commission of Chicago’s board of commissioners and helped found the Metropolitan Leadership Institute (MLI), a group that prepares young Hispanic professionals for careers in politics and government, and corporate and nonprofit arenas.

Rangel became CEO of UNO in 1996 and spurred its aggressive growth into the largest charter school network in Illinois with 11 schools under its charge. An ongoing Sun-Times investigation into how it awarded contracts related to a $98 million grant to build three new schools revealed bids were won by companies owned by the brothers of former UNO executive Miguel D’Escoto. The two companies, Reflection Windows Co. and d’Escoto Inc., were paid $8.5 million from that grant. D’Escoto resigned in February but Reflection Windows continues to receive business from the group.

Part of the focus of the SEC’s investigation into UNO’s bond dealings focuses on one of the underwriters of the bonds. Cabrera Capital Markets is a company owned by Martin Cabrera Jr., who resigned as UNO board chairman in September. Cabrera was on the board for only 3-½ months. Gov. Quinn has twice suspended paying out the remainder of the grant to UNO.

Rangel previously stepped down as UNO chairman in May but retained his CEO role. He’ll now be replaced by interim chief of operations Jesse Estrada.