<p>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. . . .</p>
<p>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 Streets brand of crony capitalism as a business model.</p>
<p>Just as a FYI: there are two “New York” law schools - NYU Law, and New York Law School. Your post title (“New York Law School fraudulent activity”) appears to refer to the latter, not the former.</p>
<p>Yes, I get the difference between New York Law and NYU Law. I tried to correct it in the title.</p>
<p>My point was to highlight an article establishing how NYU abuses the trust and interest of its students by throwing lavish amounts of money at its faculty. NYU is one of the most expensive schools in the country and has caused untold misery to those students it has left with huge amounts of non-dischargeable student loans, all while its professors are provided lives of luxury by the very students the school is supposed to serve. I don’t know. I think this is wrong.</p>
<p>“Fraudulent” is a very specific term, and I think it’s being misused here. The creation of non-profits for other-than-charitable purposes is nothing new or particularly outrageous.</p>
<p>I think that the whole system is appalling, and am happy that people are finally noticing whom all this high tuition helps: professors, deans, and administrators. Not the students.</p>
<p>Like other schools in expensive neighborhoods, NYU has a problem retaining professors who can’t afford to live in the area. Different schools have tried various fixes, including building housing and selling it to professors at below-market prices. </p>
<p>It sounds like NYU is just trying to help its professors buy housing.</p>
<p>I don’t think the problem is NYU buying housing for professors. That’s just another component to their (absurdly high) salaries. The problem is hiding it in a non-profit that allegedly exists to help students.</p>
<p>nolaw, although this is a very awkward article for NYU and it is best that these issues have come to light, I have to comment about your note that NYU abused the trust of its students. In the past and perhaps still currently, NYU offered full scholarships to a select few who were committed to public interest law. These scholarships were hard to get but they were also extremely generous. NYU also had a program called LRAP that assisted its graduates in low paying legal jobs. their grants to the students in the latter program were very generous in helping those students pay back their law school loans, and could be as high as ninety to 100 percent of these alum’s law school loans. Yes, NYU is expensive but they took proactive measures to assist their alum out who had the lowest paying legal jobs. that can not be said of all law schools. I believe they were one of the first law schools to start a LRAP program and some other law schools followed suit.</p>
<p>“nolaw, although this is a very awkward article for NYU and it is best that these issues have come to light, I have to comment about your note that NYU abused the trust of its students. In the past and perhaps still currently, NYU offered full scholarships to a select few who were committed to public interest law. These scholarships were hard to get but they were also extremely generous. NYU also had a program called LRAP that assisted its graduates in low paying legal jobs. their grants to the students in the latter program were very generous in helping those students pay back their law school loans, and could be as high as ninety to 100 percent of these alum’s law school loans.”</p>
<p>I think that the point is that NYU is draining the resources of it’s paying students (and using non-profits as private banks) so that certain people can get loans in the range of millions of dollars for residences that they cannot actually afford.</p>
<p>I’m glad that NYU is generous toward some students.</p>
<p>However, if you are a parent who is paying for NYU for your child, you are certainly not interested in paying a professor’s mortgage (and a subprime liar loan no less) so that the professor can live well in New York City.</p>
<p>In fact, if I were a parent, I would consider sending the professors in question who have obtained such loans a demand that they return my money to me.</p>
<p>It wouldn’t be much. Perhaps $5,000 or $10,000. </p>
<p>But I would be quite insistent that the money was mine (and I may even imply that they stole it from me under false pretenses). </p>
<p>To top it all off, I might then establish a scholarship in that amount for an NYU Student who would otherwise pay full price.</p>
<p>This is really just standard-issue Wall Street small-time corruption, though.</p>