According to the Chicago Sun-Times, the federal SEC has “charged the clout-heavy United Neighborhood Organization and its charter-school network Monday with defrauding investors in a $37.5 million bond deal by “making materially misleading statements” about contracts that funneled millions of state taxpayer dollars to organization insiders.”

Federal officials say their investigation is continuing and that “UNO leaders have agreed to settle the case against it by promising to never again enter into crony contracts and accepting the appointment of a federal monitor to oversee the group’s operations for a year.”

Blogger Fred Klonsky says no one in Chicago was surprised. the leader of the UNO charter chain was co-chair of Rahm Emanuel ‘s 2011 mayoral campaign