Trumping the Trustees

Around the first of the year, New College of California supposedly refinanced its properties. According to our source, the US Trustee has the power to set aside
transactions and fraudulent transfers and order a forensic accounting of the school’s assets to tell us where all the money has gone.

We suspect New College trustees and the affiliated Arlene Francis Foundation directors are terrified of this eventuality, because it would transfer every asset to the US Government in the Bankruptcy Estate, and potentially undo improper or fraudulent transactions.

Under this scenario, creditors and employees who’ve gone unpaid might still recover what they’re owed.

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~ by Jay Taber on March 5, 2008.

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