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They issued the 2015 audit report despite many unanswered questions and lack of documentation, according to the SEC, and overstated the college’s net assets by $33.8 million.
“CNR routinely failed to pay federal and state payroll taxes, flouted and ignored rules regarding use of federal grant money, overdrew its bank accounts, and depleted the majority of CNR’s endowment fund.”
The college filed for bankruptcy on Sept. 20 due to $80 million in liabilities, following several years of financial uncertainty.
If he were really committed to CNR, he would not have retired in 2016 at age 60; he would have stuck it out and handled the financial problems openly and honestly, Judge Vincent Briccetti said.
“The defendant was literally the only person who knew the truth about CNR’s financial condition,” prosecutors state in a sentencing memorandum. “He was the only person who could have initiated a successful effort to save the college."
Borge detailed his version of the college’s decline in a sentencing memorandum and letter to a federal judge in which he asks for no jail time and no fine when he is sentenced on Aug. 28.
Borge, 62 of Valley Cottage, inflated assets and underreported liabilities from 2014 to 2016, the government says, to disguise the college’s rapidly deteriorating financial condition.