WEBVTT

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THE ANNUAL CHICAGO PUBLIC

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SCHOOLS INSPECTOR GENERAL'S

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REPORT IS RELEASED.

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NEARLY A MILLION DOLLAR STOLEN

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FROM CPS, HUNDREDS OF DROPPOUTS

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FALSELY LISTED AS TRANSFERS AND

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ADMINISTRATION GETTING COZY WITH

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POTENTIAL VENDORS AND SCHOOL

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EMPLOYEES LYING ABOUT WHERE THEY

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LIVE TO HELP THEIR KIDS GET INTO

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A BETTER SCHOOL.

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CPS SAYS IN A STATEMENT THAT IT

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IS COMMIT TO THE ELIMINATING

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CORRUPTION, FRAUD, AND WASTE AND

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ALL THE ISSUES IN THE REPORT

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HAVE BEEN OR WILL BE ADDRESSED.

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JOINING US IS NICHOLAS SCHULER

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THE CHICAGO PUBLIC SCHOOLS

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INSPECTOR GENERAL.

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WELCOME BACK TO "CHICAGO

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TONIGHT."

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SOME OF THE KEY FINDINGS OF THE

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REPORT.

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IF YOU WANT TO AMPLIFY SOME OF

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THE THINGS.

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>> HAPPY TO.

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THE MANY FINDINGS BRECK DOWN TO

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TWO CATEGORIES, OPERATIONAL SIDE

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AND WHAT I CALL THE EDUCATIONAL

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SIDE.

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INVOLVE HIGH SCHOOLS.

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ON THE OPERATIONAL SIDE, THAT IS

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LARGE STEPS, ALMOST $900,000

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WORTH OF THEFT ORCHESTRATED BY A

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OPERATIONS EMPLOYEE AND IN TWO

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SCHOOLS OVER A PERIOD OF ABOUT

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FIVE YEARS.

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>> HOW IS IT DONE?

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>> YES.

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HE BASICALLY OPENED VENDORS AND

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MES ON THE VENDOR SIDE, HE

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OPENED BASICALLY FAKE PURCHASE

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ORDERS, AND GOODS AND SERVICES

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THAT WERE NEVER PERFORMED.

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AND YOU KNOW WE HAVE HUNDREDS OF

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THOUSANDS THERE, AND ON THE

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EMPLOYEE'S SIDE THE SMALLER

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SIDE, HE BASICALLY, THEY HAD

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FALSE REIMBURSEMENTS FOR THINGS

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THAT WERE NEVER PURCHASED.

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AND A HANDFUL OF OTHER

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EMPLOYEES.

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>> LET'S GET TO ANOTHER AREA

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THAT YOU ADDRESSED.

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MISCLASSIFYING DROPPOUTS.

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HOW DOES THAT WORK AND WHY IS IT

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IMPORTANT?

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>> SO, YOU KNOW, IT GOES TO THE

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SCHOOL'S DROPPOUT RATE.

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THAT IS WHY IT'S IMPORTANT.

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POEM ARE, ALL THESE CASES OF

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PEOPLE SAYING THEY WERE

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TRANSFERED FROM THE CPS SCHOOL

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SYSTEM TO PRIVATE SCHOOLS OR

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OUTSIDE OF CHICAGO ALTOGETHER.

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THEY ARE USINGED CODE AS THAT

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TRANSFER BUT IN THE MARGINS THEY

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WERE STATING THEY WERE

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TRANSFERED TO A GED PROGRAM OR

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PLANNED TO ENROLL IN A GED

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PROGRAM.

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REALLY THEY DROPPED OUT AND

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SHOULD BE CODED AS

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APPROPRIATELY.

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>> ALL TO MAKE THE SCHOOLS

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STATISTICS ON THE DROPPOUT RATE

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LOOK BETTER?

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>> THAT IS WHAT WE CONCLUDE.

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ALSO A COMPOUNDING ISSUE, THAT

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THE TRANSFERS WERE FALSELY

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VERIFIED.

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SO THEY WERE BASICALLY, SOMEONE

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IS GOING IN THE DATA BASE AND

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SAYING THEY HAVE BEEN VERIFIED,

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MEANING THEY RECEIVED

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DOCUMENTATION WHEN THERE WASN'T

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ANY IN THE FILES.

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A PROBLEM THAT AFFECTED A BIGGER

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BRUP THAN THESE GED TRANSFERS.

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AND TELL US ABOUT THE ISSUE,

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TALKING ABOUT LYING ABOUT

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RESIDENCY TO GET KIDDED-- KIDS

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IN SELECTIVE ENROLLMENT SCHOOLS.

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>> FAMILIES ARE SAYING SOMEONE

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LIVED IN A DIFFERENT

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SOCIOECONOMIC AREA THAN THEY DID

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TO GAIN FAVOR.

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THE ENTRY SYSTEM TAKES ACCOUNT

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DIFFERENT SOCIOECONOMIC TIERS

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AND BASED ON CENSUS TRACKS AND

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PEOPLE ARE SAYING THEY LIVE

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WHERE THEY DIDN'T TO GAIN AN

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ADVANTAGE.

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SEVERAL KIDS, SEVERAL STUDENTS

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WERE ALLOWED TO SCHOOLS BASED ON

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THAT BUMP UP FOR THE CENSUS

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TRACK THEY CLAIMED WHERE THEY

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LIVED WHEN THEY DIDN'T.

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THEY SAID THEY LIVED IN POOR ARE

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NEIGHBORHOODS THAN THEY LIVED IN

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BECAUSE THAT WAS FACTOR IN

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ADMISSIONS?

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>> WRE.

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WE LOOKED AT SOME, SOME FAMILIES

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AND SOME OF THE FAMILIES WERE

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THE PARENTS WASHINGED AT CPS,

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YES.

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>> WHEN YOU LOOK AT THE RANGE OF

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MISCONDUCT WHAT WAS MOST

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DISTURBING TO YOU?

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>> I THINK THE THINGS THAT GO TO

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THE EDUCATIONAL CORE.

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THE CASES INVOLVING FRAUD,

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PEOPLE INSIDE THE SYSTEM TAKING

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ADVANTAGE OF THE SYSTEM, THAT IS

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PARTICULARLYING A REGION I

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THINK.

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ANYONE THAT WE TRY TO GAIN THE

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METRICS OF THE DROPPOUT RATE,

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THOSE ARE PARTICULARLY TROUBLING

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BECAUSE IT GOES TO THE CORE OF

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WHAT THE CHICAGO PUBLIC SCHOOLS

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IS TRYING TO DO.

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EDUCATE KIDS.

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>> SOME OF THE NUMBERS, THEY ARE

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ALL VERY DISTURBING, BUT HOW IS

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IT THAT SOMEONE CAN GET AWAY

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WITH EMBEZZLING OR STEALING

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ALMOST A MILLION DOLLARS?

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AREN'T THERE CHECKS AND BALANCES

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AND REVIEW OF PACE WORK?

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>> YES.

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YOU KNOW, IN LARGE PART IT IS

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NOT THAT IT WASN'T A $100,000

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PURCHASE TIMES EIGHT, HUNDREDS

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OF SMALL TRANSACTIONS, A COUPLE

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OF THOUSAND, IN THE AGREE GATE

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FALLS BELOW THE RADAR AND

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QUESTIONS THAT REMAIN ABOUT YOU

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KNOW, WHETHER THE ADMINISTRATORS

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WERE PAYING PROSECUTE ATTENTION.

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>> CPS SAYS THE PROBLEMS HAVE

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BEEN ADDRESSED AND THE

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INDIVIDUALS WILL BE ADDRESSED,

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ARE YOU SATISFIED WITH THE STEP

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THAT WERE TAKEN TO DEAL WITH THE

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PEOPLE INVOLVED IN WRONGDOING?

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>> YOU KNOW BY AND LARGE YES,

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ESPECIALLY IN THE CASES OF

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THEFTS.

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PEOPLE HAVE BASICALLY RESIGNED

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OR BEEN TERMINATED AND ONGOING

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CRIMINAL INVESTIGATION.

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>> AS FAR AS CRIMINAL

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INVESTIGATIONS ARE CONCERNED,

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DIAGNOSIS THAT AUTOMATICALLY

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KICK IN, IF YOUR OFFICE FINDS

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THAT SOMEONE HAS STOLEN

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SOMETHING?

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>> YOU KNOW, I THINK CRIMINAL,

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THAT IS A GOOD QUESTION,

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SOMETHING TO BE CONSIDERED.

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AND CERTAIN CASES, YOU KNOW,

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PROSECUTORS WILL HAVE TO BRING

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IT TO THE PROSECUTOR'S DESK.

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>> IS THERE A PATTERN OF THIS

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CONDUCT IN CPS?

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>> A PATTERN OF THIS CONDUCT.

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>> OR ARE THEY ROGUE EMPLOYEES?

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OR IS THERE A PATTERN OF ROGUE

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MES?

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IT'S A BIG SYSTEM AND THIS WILL

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BE CASES AND I THINK THE

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PATTERN, AMONG INDIVIDUALS AND

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YOU KNOW THERE ARE CERTAIN

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REPEAT THINKINGS THAT WE HAVE

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SEEN A LOT.

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BRINGING CASES AND VENDORS

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HAVING FAKE ALTER EGOS AND GET

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MORE SPENDING LIMITS AND

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THINKINGS LIKE THAT.

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THERE ARE CERTAIN REPEAT THINGS

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THAT TO HAPPEN FROM

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YEAR-TO-YEAR.

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THEY DON'T INVOLVE THE SAME

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PEOPLE TYPICALLY.

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>> ASIDE FROM THE CONSEQUENCES

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TO THE INDIVIDUALS WHO MAY HAVE

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BEEN INVOLVED WHAT STEPS ARE

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BEING TAKEN TO PREVENT THIS FROM

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HAPPENING?

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ANY TWEAKS TO THE SYSTEM?

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>> THAT IS ALWAYS A BIG PART OF

06:51.433 --> 06:57.400 align:start position:10% line:74% size:72.5%
WHAT THEY DID ACROSS THE WORD

06:54.033 --> 06:57.866 align:start position:10% line:74% size:75%
BOARD, TRY AND FUNDS WHERE THE

06:55.466 --> 07:00.766 align:start position:10% line:74% size:57.5%
SOFT SPOTS ARE AND MAKE

06:57.400 --> 07:02.566 align:start position:10% line:74% size:40%
RECOMMENDATIONS.

06:57.866 --> 07:03.666 align:start position:10% line:74% size:80%
AS FAR AS THINGS LIKE STRINGING,

07:00.766 --> 07:06.900 align:start position:10% line:74% size:60%
WE ARE RECOMMENDING MORE

07:02.566 --> 07:09.600 align:start position:10% line:74% size:22.5%
TRAINING.

07:03.666 --> 07:11.200 align:start position:10% line:74% size:67.5%
>> STRINGING IS WHEN PEOPLE

07:06.900 --> 07:11.800 align:start position:10% line:74% size:72.5%
STRUCTURE PURCHASES THAT STAY

07:09.600 --> 07:13.400 align:start position:10% line:74% size:70%
BELOW A COMPETITIVE PURCHASE

07:11.200 --> 07:14.800 align:start position:10% line:74% size:15%
LIMIT.

07:11.800 --> 07:16.933 align:start position:10% line:74% size:77.5%
>> WE HAVE A GRAPHIC THAT SHOWS

07:13.400 --> 07:18.000 align:start position:10% line:74% size:77.5%
SOME OF THE TOP COMPLAINTS THAT

07:14.800 --> 07:18.533 align:start position:10% line:74% size:77.5%
YOUR OFFICE RECEIVED, AND LET'S

07:16.933 --> 07:22.166 align:start position:10% line:74% size:52.5%
LOOK AT THE NUMBER OF

07:18.000 --> 07:24.300 align:start position:10% line:74% size:27.5%
COMPLAINTS.

07:18.533 --> 07:26.966 align:start position:10% line:74% size:72.5%
ON DUTY CRIMINAL CONDUCT, 95.

07:22.166 --> 07:29.366 align:start position:10% line:74% size:65%
CONTRACTOR VIOLATIONS, 70.

07:24.300 --> 07:31.966 align:start position:10% line:74% size:77.5%
MISAPPROPRIATION OF FUNDSES 63,

07:26.966 --> 07:32.900 align:start position:10% line:74% size:72.5%
OFFDUTY CRIMINAL CONDUCT, 61.

07:29.366 --> 07:34.966 align:start position:10% line:74% size:75%
HOW MANY TIPS DOES YOUR OFFICE

07:31.966 --> 07:38.033 align:start position:10% line:74% size:20%
RECEIVE?

07:32.900 --> 07:39.633 align:start position:10% line:74% size:77.5%
>> WELL OVER A THOUSAND A YEAR.

07:34.966 --> 07:43.166 align:start position:10% line:74% size:67.5%
LAST YEAR WE RECEIVED 1335.

07:38.033 --> 07:45.200 align:start position:10% line:74% size:75%
HOW MANY DID YOU FOLLOW UP ON?

07:39.633 --> 07:47.533 align:start position:10% line:74% size:55%
>> I THINK AROUND 280.

07:43.166 --> 07:48.833 align:start position:10% line:74% size:35%
JUST OVER 20%.

07:45.200 --> 07:51.333 align:start position:10% line:74% size:60%
>> WHY IS THAT, IN TERMS

07:47.533 --> 07:53.566 align:start position:10% line:74% size:70%
RESOURCES HOW ARE YOU DOING?

07:48.833 --> 07:55.400 align:start position:10% line:74% size:75%
>> OUR OFFICE IS LEANLY STAFF.

07:51.333 --> 07:58.433 align:start position:10% line:74% size:67.5%
WE REPORTED THAT FOR YEARS.

07:53.566 --> 07:59.300 align:start position:10% line:74% size:45%
WE HAVE 17 PEOPLE.

07:55.400 --> 08:00.666 align:start position:10% line:74% size:60%
AND OF THOSE HOW MANY DO

07:58.433 --> 08:03.000 align:start position:10% line:74% size:40%
INVESTIGATIONS,?

07:59.300 --> 08:03.600 align:start position:10% line:74% size:22.5%
THIRTEEN.

08:00.666 --> 08:06.100 align:start position:10% line:74% size:75%
>> THERE IS NOT A LOT OF BLOAT

08:03.000 --> 08:06.566 align:start position:10% line:74% size:15%
THERE.

08:03.600 --> 08:08.433 align:start position:10% line:74% size:72.5%
>> WE ARE VERY LEANLY STAFFED

08:06.100 --> 08:10.366 align:start position:10% line:74% size:17.5%
OFFICE.

08:06.566 --> 08:12.933 align:start position:10% line:74% size:75%
ARE THERE TIPS THAT ARE VIABLE

08:08.433 --> 08:14.633 align:start position:10% line:74% size:57.5%
THAT YOU CANNOT GET TO?

08:10.366 --> 08:16.700 align:start position:10% line:74% size:72.5%
>> THAT IS MY SENSE FOR SURE.

08:12.933 --> 08:18.500 align:start position:10% line:74% size:65%
>> I WOULD ASK YOU ABOUT A

08:14.633 --> 08:19.633 align:start position:10% line:74% size:72.5%
COUPLE OF THINGS THAT ARE NOT

08:16.700 --> 08:20.733 align:start position:10% line:74% size:80%
INCLUDED IN YOUR REPORT BUT HAVE

08:18.500 --> 08:22.166 align:start position:10% line:74% size:42.5%
BEEN IN THE NEWS.

08:19.633 --> 08:24.966 align:start position:10% line:74% size:72.5%
THE "SUN-TIMES" INVESTIGATION

08:20.733 --> 08:27.066 align:start position:10% line:74% size:70%
FOUND THE COMPANIES IN WHICH

08:22.166 --> 08:28.833 align:start position:10% line:74% size:77.5%
SCHOOL BOARD MEMBER DEBORAH WAZ

08:24.966 --> 08:29.833 align:start position:10% line:74% size:60%
AN INVESTOR TRIPLED THAT

08:27.066 --> 08:32.633 align:start position:10% line:74% size:67.5%
BUSINESS WITH CPS SINCE HER

08:28.833 --> 08:33.566 align:start position:10% line:74% size:62.5%
APPOINTMENT BY THE MAYOR.

08:29.833 --> 08:34.800 align:start position:10% line:74% size:75%
AND THEY SHOWED CHUY WANTS HER

08:32.633 --> 08:35.400 align:start position:10% line:74% size:15%
FIRED.

08:33.566 --> 08:37.700 align:start position:10% line:74% size:70%
IS YOUR OFFICE INVESTIGATING

08:34.800 --> 08:38.233 align:start position:10% line:74% size:12.5%
THAT?

08:35.400 --> 08:39.933 align:start position:10% line:74% size:70%
>> I FOUND THE RECORD AND WE

08:37.700 --> 08:42.866 align:start position:10% line:74% size:10%
ARE.

08:38.233 --> 08:43.900 align:start position:10% line:74% size:62.5%
>> YOU ARE INVESTIGATING.

08:39.933 --> 08:45.166 align:start position:10% line:74% size:77.5%
THE SECOND QUESTION WHAT IS THE

08:42.866 --> 08:46.866 align:start position:10% line:74% size:72.5%
STATUS OF THAT INVESTIGATION?

08:43.900 --> 08:49.566 align:start position:10% line:74% size:27.5%
>> ONGOING.

08:45.166 --> 08:52.166 align:start position:10% line:74% size:77.5%
>> AND ANOTHER WITHIN HAS TO DO

08:46.866 --> 08:54.066 align:start position:10% line:74% size:72.5%
WITH THE CUSTODYIAL CONTRACT.

08:49.566 --> 08:57.033 align:start position:10% line:74% size:77.5%
MANY SCHOOLS ARE IN THE GETTING

08:52.166 --> 08:58.866 align:start position:10% line:74% size:72.5%
ADEQUATELY CLEANED UP BY MALL

08:54.066 --> 09:00.433 align:start position:10% line:74% size:77.5%
STAFFS AND THESE SAME WILL HAVE

08:57.033 --> 09:02.366 align:start position:10% line:74% size:80%
THE CUSTODIANS WILL CLEAN UP THE

08:58.866 --> 09:03.633 align:start position:10% line:74% size:32.5%
SNOW AS WELL.

09:00.433 --> 09:05.100 align:start position:10% line:74% size:60%
WAS THAT IN THE CONTRACT

09:02.366 --> 09:09.733 align:start position:10% line:74% size:47.5%
IMPROPERLY AWARDED?

09:03.633 --> 09:11.566 align:start position:10% line:74% size:67.5%
>> I'M NOT IN A POSITION TO

09:05.100 --> 09:12.900 align:start position:10% line:74% size:40%
COMMENT ON THAT.

09:09.733 --> 09:13.500 align:start position:10% line:74% size:75%
>> GETTING BACK TO THE REPORT,

09:11.566 --> 09:16.366 align:start position:10% line:74% size:80%
WHAT DID YOU WANT PEOPLE TO TAKE

09:12.900 --> 09:19.066 align:start position:10% line:74% size:32.5%
AWAY FROM IT?

09:13.500 --> 09:20.800 align:start position:10% line:74% size:75%
>> I THINK IN GENERAL, I THINK

09:16.366 --> 09:21.766 align:start position:10% line:74% size:72.5%
IN GENERAL, A GREAT DETERRENT

09:19.066 --> 09:23.833 align:start position:10% line:74% size:77.5%
VALUE AND I WANT PEOPLE TO KNOW

09:20.800 --> 09:25.566 align:start position:10% line:74% size:40%
THERE ARE RULES.

09:21.766 --> 09:26.266 align:start position:10% line:74% size:77.5%
WE EXPECT PEOPLE TO FOLLOW THEM

09:23.833 --> 09:27.433 align:start position:10% line:74% size:52.5%
AND THEY WILL BE HELD