UNO Soccer Academy, Tuesday, May 28, 2013. | John H. White~Sun-Times
Updated: July 4, 2014 6:14AM
The Securities and Exchange Commission on Monday announced it had charged charter school operator UNO with defrauding investors in a $37.5 million bond offering for school construction work by failing to disclose conflicts of interest.
The SEC alleged that UNO Charter School Network had failed to disclose a multimillion dollar contract with a windows company linked to one of its top executives, Miguel d'Escoto.
D'Escoto, resigned in February last year, days after the Sun-Times reported that UNO gave $8.5 million of business to companies owned by two of d’Escoto’s brothers with money from $98 million in state school-construction grant funding.
UNO is settling the SEC's charges by taking various administrative steps to improve its internal procedures, including the appointment of an independent monitor, according to a news release. UNO did not admit or deny the charges in the settlement.
More details to come.