NEW LENOX – Lincoln-Way District 210 is being investigated by the U.S. Securities and Exchange Commission, a federal agency that enforces securities laws.
District officials stated in a news release Tuesday afternoon that the SEC issued a subpoena June 6 to Lincoln-Way through the board's attorney, John Izzo of Hauser Izzo, the same law firm that defended the board from a lawsuit filed by resident group Lincoln-Way Area Taxpayers Unite.
The SEC, according to the district, is conducting a “non-public, fact-finding inquiry” to determine if any federal securities laws have been violated.
“The investigation and subpoena do not mean any laws have been broken nor does the investigation mean we have a negative opinion of any person, entity or security,” district officials stated, citing correspondence from the SEC.
The Herald-News was not able to obtain a copy of the subpoena Tuesday afternoon.
Superintendent Scott Tingley said the district is cooperating to the fullest extent with the SEC and other agencies that have also issued a subpoena to the district.
Lincoln-Way has received at least one other federal subpoena regarding former Superintendent Lawrence Wyllie, the district and the board.
The Frankfort Square Park District also received a subpoena regarding the controversial Superdog training facility on North High School property that was detailed in a lawsuit by LWATU.
Tingley said his concern at this time is stabilizing district finances.
“I can’t undo what has been done years ago. My concerns continue to be the daily operations of the district,” Tingley said.
Lincoln-Way has twice been given the worst financial rating by the Illinois State Board of Education and the board decided last year to close North high school starting this fall to save costs, a controversial decision that resulted in a lawsuit by LWATU to prevent the closing of the building.
The lawsuit was dismissed this month by a Will County judge.
District officials stated the SEC subpoena comes two months after an agreed-upon procedures (AUP) report on bond proceeds, which showed improper accounting practices as well as fund transfers that board Vice President Christine Glatz described as a "a great shell game."
The cash-strapped district will need to increase its borrowing by $5 million to fix fund transfer issues that were detailed in the AUP report.
The board acknowledged in a statement in April that a "proper system of checks and balances was not in place" and that Wyllie took unauthorized action.
Board President Dee Molinare did not immediately respond to an email Tuesday afternoon. A message sent to the SEC also was not immediately returned.