In Chicago, another tale of corruption and bribery

https://www.washingtonpost.com/local/education/in-chicago-another-tale-of-corruption-and-bribery/2015/10/08/07b45e4a-6dec-11e5-b31c-d80d62b53e28_story.html

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Barbara Byrd-Bennett, who ran the Chicago Public Schools until she stepped down this past spring amid allegations of corruption, will plead guilty to federal charges that she gave a no-bid $20.5 million contract to a former employer in exchange for future employment and a $250,000 kickback for two relatives.

[Read the indictment here ]

“Graft and corruption in our city’s public school system tears at the fabric of a vital resource for the children of Chicago,” U.S. Attorney Zachary Fardon said in a statement. “School officials and city vendors who abuse the public trust will be held accountable.”

Byrd-Bennett, 66, was charged Thursday with 15 counts of mail fraud and five counts of wire fraud. Also facing federal charges are Gary Solomon, 47, and Thomas Vranas, 34, co-owners of SUPES Academy, a for-profit company that trains principals and administrators.

According to the indictment, Byrd-Bennett steered a $20.5 million contract to SUPES Academy, where she once worked as a consultant, after Solomon promised to have a job waiting for her after her retirement from the city.

Federal prosecutors laid out extensive e-mail communication between Byrd-Bennett, Solomon and Vranas, in which they discussed the details of setting up bank accounts for her relatives and of securing additional money for the SUPES Academy contract.

In one exchange between Byrd-Bennett and Solomon, she wrote “I have tuition to pay and casinos to visit.”

[Chicago schools chief steps down amid investigation ]

Solomon and Vranas also deposited $250,000 money in financial accounts for two unnamed relatives of Byrd-Bennett’s as a “signing bonus” for her help in giving them the $20.5 million contract, the indictment said.

Fardon, the U.S. attorney, said at an afternoon news conference that Byrd-Bennett has been cooperating with investigators.

Byrd-Bennett’s attorney, Michael Scudder, in a statement said his client would plead guilty.

“As the U.S. Attorney’s Office indicated at its press conference today, Barbara Byrd-Bennett will plead guilty to charges in the indictment,” said Scudder, a partner in the Chicago office of law firm Skadden Arps Slate Meagher & Flom. “As part of accepting full responsibility for her conduct, she will continue to cooperate with the government, including testifying truthfully if called upon to do so.”

Karen Lewis, president of the Chicago Teachers Union, said in a statement that the circumstances around the indictment are “unfortunate and mark a sad day for the leadership of our district” but that they “wish Ms. Byrd-Bennett well in her legal battles.”

Chicago Mayor Rahm Emanuel tapped Byrd-Bennett to lead one of the nation’s largest school systems in 2012. She resigned in June, after it became public that federal officials were investigating the 2013 contract award to SUPES Academy.

“I am saddened and disappointed to learn about the criminal activity that led to today’s indictment of Barbara Byrd-Bennett,” Emanuel said through a spokeswoman. “Our students, parents, teachers and principals deserve better. Together, we have made significant educational strides at CPS with rising graduation rates, test scores and attendance, and our commitment to building on that progress remains as strong as ever.”

In July, Emanuel appointed Forrest Claypool, a longtime ally and his chief of staff, to take over the school system, which educates about 400,000 students and is grappling with serious budget problems. He is the fifth chief executive of the system since Arne Duncan resigned in 2009 to become Education Secretary.