An audit of the College Illinois prepaid tuition program determined the program’s overseers didn’t follow “sound business practices,” or state law, when it hired San Francisco-based Grigsby & Associates for investment advice.
The firm advised College Illinois on debt restructuring, but gave only one opinion to the Illinois Student Assistance Commission — to invest $12.8 million in ShoreBank Corp. The investment was lost last year when ShoreBank collapsed.
The audit found Grigsby & Associates was not objective when giving the investment advice because there was no way the firm could be paid if the ShoreBank investment was not made. Grigsby & Associates was paid $255,600.
The audit also found College Illinois had a deficit of $338 million on June 30, slightly less than its $342 million deficit in 2009.
…And why do we think College Illinois which at the time (3 or 4 years ago now) reported to Alexi and Blago might have been prompted to invest in ShoreBank?
Welcome to Illinois…where corruption reigns
Why invest into ShoreBank, which by that time was showing signs of “failing”?
ShoreBank was a community bank not an investment bank??? and why is this “investment” lost, since ShoreBank got to take all of their investments/assets and make themselves Urban Partnership Bank?
I smell a lawsuit.
What are the odds they’re going to make good on the substantial investment I made for my child’s tuition? That’s a big deficit.
Isn’t Obama’s cronies running this bank?
i m daily visitor of this site…