Chicago Public Schools sues its former CEO for $65 million

CHICAGO (AP) - Chicago Public Schools on Thursday filed a lawsuit seeking $65 million from its former chief executive, who pleaded guilty to helping steer millions of dollars in no-bid contracts in return for kickbacks.

In addition to Barbara Byrd-Bennett, the lawsuit filed in Cook County Circuit Court also names Gary Solomon, co-owner of SUPES Academy, and his business partner, Thomas Vranas, who are accused of arranging to pay Byrd-Bennett $2.3 million in exchange for steering $23 million in no-bid contracts to the company.

"With scarce resources, staff furloughs and painful budget cuts, CPS is keeping a close watch on every dollar," current CPS CEO Forrest Claypool said in a statement. "Barbara Byrd-Bennett and her co-conspirators knew the district's dire straits and still concocted this scheme to divert needed resources away from classrooms and line their own pockets."

The school district faces a $1.1 billion budget deficit and is at odds with the Chicago Teachers Union in negotiations over a new contract.

Under Illinois law, CPS is allowed to go after individuals who have defrauded it. The lawsuit alleges Byrd-Bennett, Solomon and Vranas engaged in civil conspiracy, breach of fiduciary duty, breach of contract and unjust enrichment.

"In plain terms, defendants have stolen money from plaintiff (CPS) and the schoolchildren of the City of Chicago, and that money should be returned," the lawsuit states.

Byrd-Bennett entered a guilty plea Tuesday for one count of fraud. As part of her plea deal, prosecutors recommended she serve 7 ˆ½ years in prison and said they will drop the other counts.

Prosecutors alleged the scheme started in 2012 - the year Mayor Rahm Emanuel hired the Solon, Ohio, woman to become the district's chief executive. The indictment alleged that the owners of the two education service and training firms offered her a job and a hefty one-time payment - disguised as a lucrative signing bonus - once she left CPS.

Solomon and Vranas have pleaded not guilty to wire fraud and other federal charges.

Byrd-Bennett's attorney, Thomas A. Smith, declined to comment on the lawsuit.

Anthony Masciopinto, who represents Solomon and the companies, said his client hasn't been convicted of any wrongdoing, though plea agreements have been discussed.

"Certainly restitution will be determined by the criminal judge," Masciopinto said. "CPS apparently is looking for far more than what a criminal judge would order as restitution under the criminal laws," Masciopinto said.

The attorney for Vranas didn't immediately return messages seeking comment.