Audit criticizes College Illinois managers

By Associated Press
Posted April 8 at 6:21 a.m.

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.

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  1. Northbrook Steve April 8 at 7:50 a.m.

    …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?

  2. Yogi April 8 at 10:13 a.m.

    Welcome to Illinois…where corruption reigns

  3. Chelle April 8 at 11:50 a.m.

    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.

  4. Tim April 8 at 1:48 pm

    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.

  5. The dude April 8 at 2:28 pm

    Isn’t Obama’s cronies running this bank?

  6. Business and Audit April 9 at 9:59 a.m.

    i m daily visitor of this site…

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