The scandal-plagued United Neighborhood Organization will cease to operate its 16 Chicago charter schools at the end of the 2014–15 school year.

The UNO Charter School Network announced on Aug. 13 that it will not renew UNO’s charter management contract and will assume direct control over the 16 schools at the end of the coming year.

UNO’s troubles began in June 2013, when it was found to have hired construction companies owned by relatives of a senior executive to build charter schools paid for with state grants. It was also accused by the federal Securities and Exchange Commission of defrauding investors in a $37.5 million bond offering for the construction work by failing to disclose to them the conflict of interest.

The UNO Charter School Network was formed in the wake of that scandal.

Chicago Tribune, Aug. 13
Chicagoist, Aug. 15