State cuts off money to UNO charter schools over insider deals
BY DAN MIHALOPOULOS Staff Reporter dmihalopoulos@suntimes.com April 25, 2013 2:02PM
From left, Gov. Pat Quinn, UNO CEO Juan Rangel, House Speaker Michael Madigan and Ald. Edward Burke at the July 2012 groundbreaking on the Southwest Side for the UNO Soccer Academy Charter High School.
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Updated: April 25, 2013 5:01PM
Gov. Pat Quinn’s administration has cut off funding to the state’s largest charter-school operator, the politically influential United Neighborhood Organization, over insider deals it says violated terms of a $98 million state grant, according to a letter obtained by the Chicago Sun-Times.
The deals involved millions of dollars in state funds that went to companies owned by two brothers of a high-ranking UNO executive, Miguel d’Escoto, that were hired as contractors on state-funded school construction projects in Chicago, according to the letter, which was sent to the organization Thursday from the Illinois Department of Commerce and Economic Opportunity.
The state agency began investigating UNO in response to reports in the Sun-Times that revealed that d’Escoto Inc. and Reflection Window Co. have been paid a total of $8.5 million out of the state grant. D’Escoto Inc. is owned by Federico “Fred” d’Escoto. Reflection Window is owned by Rodrigo d’Escoto.
The two men are brothers of Miguel d’Escoto, a city transportation commissioner in former Mayor Richard M. Daley’s administration who resigned Feb. 12 from his $200,000-a-year position as UNO’s No. 2 executive following the Sun-Times reports.
State officials said UNO should have notified them it was