Overcast
48°FOvercastFull Forecast

SEC: Chicago school operator defrauded investors

Published: Monday, June 2, 2014 1:41 p.m. CST

CHICAGO — The Securities and Exchange Commission has charged a Chicago charter school operator with defrauding investors.

The SEC announced the charges Monday against UNO Charter School Network Inc. The SEC alleges the school operator and United Neighborhood Organization of Chicago failed to disclose a multimillion-dollar contract with a windows company owned by the brother of one of its senior officers. The SEC alleges investors in a $37.5 million bond offering for school construction weren't informed about the transaction's potential financial impact.

UNO is settling the charges by agreeing to improve its procedures and by appointing an independent monitor.

Miguel d'Escoto left UNO in February after the Chicago Sun-Times reported that $8.5 million had gone to companies owned by his relatives.

A phone message seeking comment from UNO wasn't immediately returned.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Daily Chronicle.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Watch Now

Player embeded on all DDC instances for analytics purposes.

NIU-Ohio postgame: Rod Carey

More videos »

Reader Poll

What's the longest you've worked for the same employer?
Less than 5 years
5-10 years
10-20 years
20-35 years
More than 35 years