Education: An Innovator in Trouble

Unorthodox loans lead to a school chancellor's suspension

It began with a shot in the dark. Early one morning in late February, John Chin, a New York City board of education employee, was arrested after allegedly firing a gun through a Manhattan neighbor's window. In a search of Chin's apartment, police found drugs, a gun and two uncashed checks, totaling about $10,000, made out to Chin by Anthony Alvarado, 41, the city's popular, innovative chancellor of public schools. They also found the title to the chancellor's 1980 Toyota.

Alvarado claimed that he had borrowed money...

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