|UNO boss Juan Rangel was Rahm Emanuel's campaign chairman in 2011.|
According to the report:
The number of instances of serious fraud uncovered by whistleblowers, reporters, and investigations suggests that the fraud problem extends well beyond the cases we know about. According to standard forensic auditing methodologies, the deficiencies in charter oversight throughout the country suggest that federal, state, and local governments stand to lose more than $1.4 billion in 2015.In 2014, the Federal Securities and Exchange Commission (SEC) charged UNO Charter School Network with defrauding investors in a $37.5 million bond offering for school construction by making materially misleading statements about transactions that presented a conflict of interest. According to the SEC’s complaint, UNO failed to notify the state of two construction contracts totaling $12.9 million with the brothers of one of UNO’s top executives. Additionally, the charter school operator failed to notify bond investors that the state could take the loan that the bond was assured with back for the non-disclosure of the contracts.
Call it the charter corruption tax. We all pay it every year and it's money taken right out of our public school classrooms.
President Obama’s proposed budget for fiscal year 2016 includes $375 million specifically for charter schools (a 48% increase over last year’s actual budget).