Submitted by: Myke
Horsford-led IFC may have illegally plundered millions from College Savings Plan
Participants in Higher Education Prepaid Tuition Program may now have grounds to sue
By Steven Miller
LAS VEGAS — Did Nevada's most powerful legislators, sitting as the Interim Finance Committee last year, illegally plunder millions from a college savings program serving almost 10,000 Nevada families?
Chaired by Senate Majority Leader Steven Horsford, the IFC on July 21, 2010, took $4.2 million out of the Nevada College Savings Plans' endowment fund and used it to fill a growing hole in the state's Millennium Scholarship program.
Problem was, the endowment funds are under the legal authority of the College Savings Board — a point acknowledged by Horsford just a month earlier — and board trustees had never given their permission.
Moreover, the trustees — to deal with an at-least $16.3 million deficit in Nevada's Prepaid Tuition Program, for which they have fiduciary responsibility — had already, three months earlier, committed nearly all of those endowment funds. ...
Those 9,933 Nevadans who own contracts for prepaid tuition with the College Savings Board may now — according to a nationally experienced securities attorney consulted by Nevada Journal — have legal grounds to sue the College Savings Board, demanding that it seek to recover the $4.2 million taken by the IFC.
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