- University of California campuses admitted 64 less-qualified but well-connected students between 2013 and 2018, state auditor Elaine Howle said in a report published Tuesday.
- In the audit, Howle concluded that the UC system “has not treated applicants fairly or consistently.” In an interview with NBC News, she also said hundreds of more students could have been unfairly accepted into these four universities.
- In one example described in the audit, an applicant made the lowest possible scores on their application and was flagged as “do not recommend,” yet a donor relations admin passed on that application to a coach, noting that the applicant’s father had the capacity to donate major gifts to the school.
- Howle has now recommended that the UC Office of the President oversees admissions for at least three years and said campuses should be required to verify athletic recruits’ talents.
Audit of UC Campuses
The University of California admitted dozens of less-qualified, well-connected applicants over a six-year period, “[depriving] more qualified students of the opportunity for admission,” according to a state audit report published Tuesday.
The report details how four UC campuses — Berkeley, Los Angeles, Santa Barbara, and San Diego — admitted 64 students (and possibly more) between the 2013-2014 and 2018-2019 academic years. According to state auditor Elaine Howle, the majority of those applicants were white, and at least half came from families with average yearly incomes over $150,000.
In one example outlined in the report, a child of a major donor applied to UC Berkeley but received the lowest possible score on their application, which was marked “Do Not Recommend.” Despite this, a donor relations administrator later passed that application along to an unnamed coach while noting that the family had a “huge capacity” to donate and was “already a big supporter of Cal.”
According to the audit, the coach then identified that applicant as a qualified student athlete, even though the applicant “had played only a single year of the sport in high school and at a low level of competition.”
After accepting a spot at Berkeley, the student’s family donated several thousand dollars to the team, but as the report notes, “The applicant never competed with the team, and the coaches removed the applicant from the team after the season ended.”
In a different example laid out in the audit, a UCLA coach admitted a student as an athlete as a favor to a donor, even though that student’s application had already been marked “Denied.”
In fact, 22 of the total 64 applicants were admitted with the endorsement of athletic departments, despite not meeting the athletic qualifications.
In another example, an applicant who babysat for the colleague of the former admissions director was accepted into one of the schools.
In a letter to Governor Gavin Newsom and the California state legislature prefacing the report, Howle concluded “that the university has allowed for improper influence in admissions decisions, and it has not treated applicants fairly or consistently.”
“By admitting 64 noncompetitive applicants, the university undermined the fairness and integrity of its admissions process and deprived more qualified students of the opportunity for admission,” she added.
As part of several recommendations, Howle said the UC Office of the President should oversee admissions for at least three years to “ensure that all admissions decisions are merit‑based and conform to the university’s policies on admissions.”
That recommedation will likely be especially stressed for UC Berkeley, which dominated the report with 42 of the total cases.
Still, in an interview with NBC News, Howle said she believes the UC system’s unfair admissions practice could run even deeper.
“There’s at least another 400 or so students… that were really questionable,” she told the outlet.
Because of all those factors combined, Howle has also recommended that beginning with the current admissions cycle, campuses should be required to verify athletic recruits’ talents and review donation records for possible impropriety.
In general, Howle noted that “applicants’ chances of admission were also unfairly affected by UC Berkeley’s, UCLA’s, and UC San Diego’s failures to properly train and monitor the staff who review and rate applications.”
According to Howle, at times, admissions staff were “overly strict or overly lenient in their review of applications,” which made “applicants’ chances of admission unduly dependent on the individual staff who rated them rather than on the students’ qualifications.”
UC President Responds
UC President Michael Drake said Howle’s audit follows two internal audits that identified many of the same issues, with Drake noting that Howle’s audit will be used to improve the admissions system.
“Individuals involved in improper activities will be disciplined appropriately,” he stressed.
A spokesperson for UCLA said its athletics-related incidents happened before the school adopted additional safeguards. Both UCLA and UC Berkeley noted that they have improved their admissions policies within recent years and that their review processes are fair.
UC Santa Barbara also said it has adopted recent safeguards, including having faculty committees review an athlete’s academic and athletic history.
Still, Howle’s audit uncovered many more cases of unfair admissions than an internal UC audit released in February, which found only two instances of possible impropriety. That audit was ordered by then-UC President Janet Napolitano following the national college admissions scandal that has led to convictions for actresses such as Felicity Huffman and Lori Loughlin.
See what others are saying: (The Wall Street Journal) (NBC News) (CNN)
Donald Trump and Eldest Three Children Hit With Fraud Lawsuit From New York AG
AG Letitia James says that the former president “falsely inflated his net worth by billions of dollars to unjustly enrich himself.”
Lawsuit Filed Against Trump
New York Attorney General Letitia James announced on Wednesday that she filed a civil lawsuit against former president Donald Trump and his three eldest children over allegations that they fraudulently inflated asset valuations within the Trump Organization.
Donald Trump Jr., Eric Trump, and Ivanka Trump are all listed alongside their father in the lawsuit. Executives Jeffrey McConney and Allen Weisselberg, the latter of whom recently pled guilty to tax crimes, are also listed alongside other Trump businesses.
“Donald Trump, with the help of his children…and senior executives at the Trump Organization, falsely inflated his net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to satisfy continuing loan covenants, to induce insurers to provide insurance coverage for higher limits and at lower premiums, and to gain tax benefits, among other things,” a press release announcing the lawsuit claimed.
The Attorney General’s office claims that between 2011 and 2021, Trump and the Trump Organization made 200 false and misleading claims about asset values on annual financial statements.
The lawsuit was filed Wednesday in a State Supreme Court in Manhattan.
“The complaint demonstrates that Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and to cheat the system, thereby cheating all of us,” James said while announcing the complaint.
Her office is seeking to permanently ban Trump and his children from serving as an officer or director in any New York corporation and to bar Trump and his organization from entering into any New York real estate acquisitions for five years. The office is also seeking to recover $250 million in penalty payments, among other forms of relief.
The Office of the Attorney General has also referred the matter to the federal attorneys in New York and to the IRS for criminal investigation.
“There aren’t two sets of laws for people in this nation: former presidents must be held to the same standards as everyday Americans,” James added in a statement on social media.
“Trump’s crimes are not victimless,” she continued. “When the well-connected and powerful break the law to get more money than they are entitled to, it reduces resources available to working people, small businesses, and taxpayers.”
Trump Allegedly Inflated Key Assets
According to James’ release, Trump “made known through Mr. Weisselberg that he wanted his net worth on his statements to increase every year.”
“And the statements were the vehicle by which his net worth was fraudulently inflated by billions of dollars year after year,” the release continued.
Among the assets Trump and his organization allegedly inflated was the Trump Tower Triplex, an apartment Trump allegedly claimed was 30,000 square feet when it is just around 11,000 square feet. Because of its ballooned size, the property was valued at $327 million in 2015, roughly three times as much as the sole apartment in New York City to ever sell for over $100 million at the time.
For further comparison, the highest sale for a listing in Trump Tower at the time was only $16 million.
Trump also allegedly claimed Mar-a-Lago was valued as high as $739 million based on the “false premise” that the property could be developed and sold for residential use. The lawsuit claims that Trump actually signed deeds donating those rights, limiting the property’s use to a social club. James and her office claim its value would fall closer to $75 million.
Inflated Clauations Cannot Be “Excused”
“The inflated asset valuations in the Statements cannot be brushed aside or excused as merely the result of exaggeration or good faith estimation about which reasonable real estate professionals may differ,” the lawsuit states, adding that instead, they are the result of improper methodology intentionally meant to falsely boost Trump’s net worth.
The investigation into Trump’s alleged fraud began nearly three years ago, and the former president has repeatedly called it a politically motivated witch hunt. His attorney, Alina Habba, doubled down on that rhetoric in a statement Wednesday.
“Today’s filing is neither focused on the facts nor the law – rather, it is solely focused on advancing the Attorney General’s political agenda,” Habba said. “We are confident that our judicial system will not stand for this unchecked abuse of authority, and we look forward to defending our client against each and every one of the Attorney General’s meritless claims.”
For his part, Trump has blasted the lawsuit on Truth Social, calling James a “fraud” and a “crime-fighting disaster.”
Trump previously tried to impede the probe but was ultimately ordered by a judge to sit for a deposition and turn over subpoenaed documents. Reports say he pled the fifth hundreds of times during his deposition.
See what others are saying: (Bloomberg) (The Washington Post) (Reuters)
Hurricane Fiona Causes “Catastrophic” Damage in Puerto Rico, Leaving Many Without Power
While power has been restored to some, more than a million remain without it as continued rainfall, flooding, and landslides are expected to cause further damage across the island.
Hurricane Fiona Wreaks Havoc
Hurricane Fiona made landfall in Puerto Rico Sunday, bringing heavy rains, flooding, and landslides, while also knocking out power for the entire island and killing at least one person.
Photos and videos posted on social media show floodwaters consuming major streets and engulfing cars. Some pictures show an entire bridge flooded, making it impassible. Other footage shows a different bridge entirely uprooted and a metal barrier ripped away from the road and floating down a river of floodwater.
Officials have said conditions are still too dangerous to fully evaluate the extent of the crisis. In remarks to the public, Puerto Rico’s governor, Pedro Pierluisi, described the damage as “catastrophic.”
He asserted that the storm has been one of the most significant since Hurricane Maria — which hit the island almost exactly 5 years ago to the day — killing more than 3,000 people, leaving many without power for months, and causing destruction that the island is still recovering from.
Pierluisi noted that Puerto Rico has received over 30 inches of rain and that some areas have even gotten more rain than during Hurricane Maria. As of Monday afternoon, the National Gaurd has led 30 rescue operations so far, saving more than 1,000 stranded residents in 25 municipalities, according to the governor.
Pierluisi also added that more than 2,000 people were in the island’s 128 shelters, with officials further saying there is plenty of shelter space for those who need it. On Sunday, President Joe Biden approved an emergency declaration for Puerto Rico, which will allow federal agencies to coordinate disaster relief.
Continued Issues As Storm Rages On
Meanwhile, Puerto Rico’s water authority has confirmed that just over 70% of the island is still without water. According to poweroutage.us, more than 1.3 million customers were still without power as of Monday morning.
The power company LUMA also stated that electricity had been restored to around 100,000 customers over the course of Sunday night, though it previously warned that the full restoration of power could take several days as the storm has created “incredibly challenging” conditions.
While Hurricane Fiona has passed through Puerto Rico, having now made landfall in the Dominican Republic, officials and experts say that heavy rains and further flooding are still to be expected for the next few days.
The National Weather Service has warned that “life-threatening and catastrophic flooding” as well as mudslides and landslides are expected to continue across the island. As a result, Pierluisi has urged Puerto Ricans Monday to remain home and in shelters so that officials can continue to respond to others in need.
He also noted that the areas most impacted by the hurricane include the southern part of the island, the southwest, and the mountains.
After moving through the Dominican Republic, Hurricane Fiona is expected to head towards Turks and Caicos Tuesday. The National Hurricane Center has said that the storm will continue to grow and by Wednesday, it is set to become a major hurricane — which means a Category 3 or higher.
See what others are saying: (The New York Times) (The Washington Post) (CNN)
Government Aid Cut Child Poverty in Half During Pandemic, Data Shows
The reduction occurred similarly across geography, race, family type, and citizenship status.
Largest Drop in Half a Century
The United States’s child poverty rate sank to the lowest level on record last year, primarily thanks to pandemic relief measures and other government programs, according to an analysis of census data released Tuesday.
The Center on Budget and Policy Priorities analyzed data from the Census Bureau’s supplementary poverty measure, which accounts for safety net programs and tax credits as well as regional differences in the cost of living.
From around 11% in 2019, the percentage of kids living below the poverty line fell to 9.7% in 2020 and 5.2% the year after that.
In just two years, nearly 5.5 million kids were lifted from poverty, marking an almost 60% drop in the child poverty rate.
The Center’s researchers gave most credit to the federal government’s numerous interventions in the economy, from stimulus payments and the expanded child tax credit to eviction moratoriums and expanded unemployment insurance.
Without government intervention, poverty in 2020 would have experienced its second-largest recorded increase, the Center claimed, but instead, it underwent the largest single-year decline in over half a century.
Especially impactful was the expanded child tax credit, which sent up to $300 per child to households with children every month between July and December 2021.
According to the analysis, this policy alone pulled nearly three million kids out of poverty.
But the tax credit’s expansion expired at the end of the year despite Democrats’ efforts to prolong it with Biden’s signature Build Back Better bill, which was blocked by Sen. Joe Manchin (D-WV), who reportedly told colleagues he was concerned that families might use the payments to buy drugs.
Poverty Before COVID
Child poverty has fallen by 59% since 1993, when it sat at around 28%, according to another analysis published Sunday by The New York Times and the nonpartisan group Child Trends.
They found that the decline occurred across all 50 states and D.C., as well as in different levels of poverty.
It similarly affected nearly all subgroups of children, — white, Black, Asian and Hispanic, single-parent and two-parent, immigrant and non-immigrant.
The causes driving the pre-pandemic decline included general economic improvement — low unemployment, a higher labor force participation rate among single mothers, and growing state minimum wages — but the researchers pinned government welfare programs as the dominant factor.
They specifically mentioned the earned income tax credit, social security, unemployment insurance, and nutrition and housing assistance.
Despite the positive trend, more than eight million children still live below the poverty line, and that number excludes those who live just above it but still struggle to meet basic needs.
The current poverty line sits around $29,000 for a family of four in a location with typical living costs.
Moreover, disparities still persist, with Black and Latino children about three times as likely as their white peers to be poor.