Victory over ILL-inois crony capitalism: Quinn cuts off cash to clout-heavy charter school group

A rare victory against ILL-inois crony capitalism occurred today. But is it only a temporary victory? Clout-heavy groups tend to metastasize in my state.

From the Chicago Sun-Times:

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.

Juan Rangel, the CEO of UNO, was one of the co-chair's of Chicago Mayor Rahm Emanuel's campaign committee.

Related post:

Illinois crony capitalism: Charter school grants go to politically-connected relatives