Courtesy of Pam Martens.
NYU Provided a $2.85 Million Mortgage to a Law Professor to Buy a 6 Room, 3 1/2 Bath Condo In This Building
According to documents unearthed in a month-long search of public records, NYU Law School has created an array of nonprofits to funnel money into lavish perks for its professors. The money has been used by professors to buy multi-million dollar brownstones and condos in Manhattan and Brooklyn with portions of some loans forgiven over time. In some cases, even the interest charged on the loans has been reimbursed.
The decision to use nonprofit funds to enhance the lifestyles of a select handful of professors and administrators rather than assisting students is under investigation by Senator Chuck Grassley at the Senate’s Judiciary Committee. A referral has also been made by the NYU chapter of the American Association of University Professors to the New York State Attorney General’s Charities Bureau which oversees nonprofit organizations.
From the hundreds of records examined, NYU, under the leadership of President John Sexton, looks like a real estate developer in drag as a university. According to its federal tax returns from 2006 through 2010 – just a five year period, its five highest paid independent contractors received over $568 million for construction work and an eye-popping $173 million to clean its buildings.
Last year, Newsweek magazine ranked NYU as the fourth least affordable university in the country with an annual on-campus cost of $58,858.
Sitting in close geographic proximity to the rapacious denizens of Wall Street, with a Board sprinkled with the chummy financial titans and chaired by their go-to legal counsel, Martin Lipton, it seemed only a matter of time before NYU would succumb to Wall Street’s brand of crony capitalism as a business model.
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