Despite felony, Olivet receives federal PPP loan

WINGDALE — Most Americans are well aware that the federal Payment Protection Program (PPP) designed to help small businesses (with 500 employees or fewer) survive the coronavirus pandemic with forgivable loans has had some serious flaws — with enterprises like the Los Angeles Lakers and New York Knicks NBA teams and the popular burger chain, Shake Shack, getting many millions of dollars in loans (which they eventually returned amid a public outcry). Meanwhile, many small business owners complained they didn’t receive a dime — or received far too little — to help them through temporary closures caused by the health crisis. 

Yet Olivet University, the evangelical Christian University founded by South Korean pastor David Jang based out of San Francisco, Calif., with a campus at the former Harlem Valley Psychiatric Center in Wingdale, and Newsweek magazine, both of which have been mired in controversy and pleaded guilty to a $35 million money laundering scheme earlier this year, received the government loans. 

On Monday, July 27, Olivet spokesperson Ronn Torossian confirmed reports that the university received roughly $500,000 from the federal loan program, which is administered by the Small Business Administration (SBA). 

“Following careful review with legal counsel, Olivet University had completed and submitted the PPP application in compliance with the law,” stated Torossian. “The SBA had approved it and had granted a loan amount of around $500,000.”

Newsweek, whose parent company, IBT Media, was also found guilty in the money laundering scheme, reportedly received a PPP loan worth $350,000.

The PPP loan application asks whether the applicant has been involved in any kind of fraud during the previous five years. The charges involving Olivet University and Newsweek were brought by Manhattan District Attorney (DA) Cyrus R. Vance Jr.’s office roughly two years ago; the guilty pleas were entered on Valentine’s Day, Feb. 14, of this year. 

But according to Torossian, the question, which he stressed was for corporate applicants, “refers to the owners, which is the board at the time of the application. 

“Nobody on the current board of the university was convicted of a felony charge at the time of the PPP application,” he stated. “Any previously indicted individuals had left the board long before the university had decided to apply for the PPP. In this regard, the university had correctly and truthfully replied to all the questions in the PPP application form.” 

Vance concurred following the conclusion of the case that the executives who were responsible for the crime were no longer working by the time the guilty pleas were entered in court. Those included Andrew Lin, who resigned as Olivet chairman of the board; publishing executives Etienne Uzac, the former co-owner and chairman of IBT Media, which once owned Newsweek magazine; and William Anderson, the former CEO of Christian Media Corporation (CMC) and former Olivet trustee.

According to a past statement from Vance, Uzac  and Anderson entered guilty pleas for engaging in a scheme “to fraudulently obtain $35 million from lenders.”

In Vance’s original 2018 indictment, he charged they conspired to fraudulently obtain millions in financing using Olivet’s name. The money, he said, was then laundered to “obscure its origins and fund Olivet’s operations.” According to the DA, the media companies and the university “disguised” their financial standing to appear larger than it was in order to secure loans worth $35 million, with which they said they would purchase high-tech computer servers. Then, after buying cheaper servers — if any at all — they used the loans for their own purposes, charged the DA.

On Feb. 14, both Uzac and Anderson pleaded guilty in New York State Supreme Court to money laundering in the second degree, a class C felony, and scheme to defraud in the first degree, a class E felony.

On Feb. 20, Olivet President Tracy Davis represented the university and entered a guilty plea for falsifying business records and taking part in a conspiracy. The school was fined $1.25 million for the offenses — a fraction of the $35 million the DA was pursuing. That’s mainly because Olivet had paid back all of the loans, despite their being fraudulently obtained.

Also convicted was Lin, who though convicted of fraud was only lightly punished by Manhattan district court docket Judge Ruth Pickholz. Lin pledged to refrain from serving in a governmental or managerial position at Olivet for the next two years.

Judge Pickholz ruled that Olivet will be conditionally discharged if its obligations are met during the next two years. The felony charges will then be reduced to misdemeanor charges.

The defendants — who stressed they repaid they loans in full — had hoped to get off with no jail time. They were scheduled to appear back in court for their sentencing on Monday, April 20. According to one source, the sentencing took place and they received community service hours.

According to a June SBA report, the average PPP loan amounts to roughly $107,000; the SBA claims 51 million jobs have been supported through the program as well as 84% of all people employed by small businesses in the U.S.

To date, $521 billion in PPP loans has been distributed, though there have been complaints about a lack of transparency as to where those loans have gone. But the federal government has been resistant to calls for increased transparency, claiming the information is “confidential.” The government finally released information in July on roughly 700,000 PPP loans of $150,000 or higher following intense public pressure. 

The Washington Post reported that the data released, however, only reflects 15% of the loans issued and doesn’t include the majority of “sole proprietorships and independent contractors.” It also said some of the government’s information is erroneous, with incorrect figures or crediting loans that haven’t been released yet.

The program is nearing an end — the application deadline was extended until Aug. 8 — it’s unclear if there will be another round as Congress is debating further aid.

Latest News

Robin Wall Kimmerer urges gratitude, reciprocity in talk at Cary Institute

Robin Wall Kimmerer inspired the audience with her grassroots initiative “Plant, Baby, Plant,” encouraging restoration, native planting and care for ecosystems.

Aly Morrissey

Robin Wall Kimmerer, the bestselling author of “Braiding Sweetgrass” and a member of the Citizen Potawatomi Nation, urged a sold-out audience at the Cary Institute of Ecosystem Studies on Friday, March 13, to rethink humanity’s relationship with the natural world through gratitude, reciprocity and responsibility.

Introduced by Cary Institute President Joshua Ginsberg, Kimmerer opened the evening by greeting the audience in Potawatomi, the native language of her ancestors, and grounding the talk in a practice of gratitude.

Keep ReadingShow less

Melissa Gamwell’s handmade touch

Melissa Gamwell’s handmade touch
Melissa Gamwell, hand lettering with precision and care.
Kevin Greenberg
"There is no better feeling than working through something with your own brain and your own hands." —Melissa Gamwell

In an age of automation, Melissa Gamwell is keeping the human hand alive.

The Cornwall, Connecticut-based calligrapher is practicing an art form that’s been under attack by machines for nearly 400 years, and people are noticing. For proof, look no further than the line leading to her candle-lit table at the Stissing House Craft Feast each winter. In her first year there, she scribed around 1,200 gift tags, cards, and hand drawn ornaments.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

Regional 7 students bring ‘The Addams Family’ to the stage

The cast of “The Addams Family” from Northwest Regional School District No. 7 with Principal Kelly Carroll from Ann Antolini Elementary School in New Hartford.

Monique Jaramillo

Nearly 50 students from across the region are helping bring the delightfully macabre world of “The Addams Family” to life in Northwestern Regional School District No. 7’s upcoming production. The student cast and crew, representing the towns of Barkhamsted, Colebrook, New Hartford and Norfolk, will stage the musical March 27 and 28 at 7 p.m., with a 2 p.m. matinee on March 29 in the school’s auditorium in Winsted.

Based on the iconic characters created by Charles Addams, the musical follows Wednesday Addams, who shocks her famously eccentric family by falling in love with a perfectly “normal” young man. When his parents come to dinner at the Addams’ mansion, two very different families collide, leading to an evening of secrets, surprises and unexpected revelations about love and belonging.

Keep ReadingShow less
‘Quilts of Many Colors’ opens at Hunt Library

Garth Kobel, Art Wall Chair, Mary Randolph, Frank Halden, Ruth Giumarro, Project Chair, Maria Bulson, Barbara Lobdell, Sherry Newman, Elizabeth Frey-Thomas, Donna Heinz around “The Green Man.”

Robin Roraback

In honor of National Quilt Day, a tradition established in 1991, Hunt Library’s second annual quilt show, “Quilts of Many Colors,” will open Saturday, March 21, with a reception from 5 to 7 p.m. The quilts, made by members of the Hunt Library Quilters, will be displayed through April 17. All quilts will be for sale, and a portion of each sale goes to the library.

At the center of the exhibit is a quilt the Hunt Library Quilters collaborated on called the “Quilt of Many Colors,” inspired by Dolly Parton’s song”Coat of Many Colors.” Each member of the Hunt Library Quilters made two to four 10-inch squares for the twin-size quilt, with Gail Allyn embroidering “The Green Man” for the center square. The Green Man, a symbol of rebirth, is also a symbol of the library, seen carved in stone at the library’s entrance. One hundred percent of the sale of this quilt benefits the library.

Keep ReadingShow less
Webutuck students’ films hit the silver screen at filmmaking workshop

Benjamin Sprague, left, Nolan Howard, center, and Holden Slater conduct a Q&A with community members that came to watch their short documentary films after a filmmaking workshop at the Millerton Moviehouse on Thursday, March 12.

Photo by Aly Morrissey

MILLERTON — Students from the Webutuck Central School District screened their five-minute documentaries at The Moviehouse Thursday, March12, showing off their newly acquired skills to an audience of friends, family and community members.

The films — written, directed, shot and edited by the students themselves with guidance from local filmmakers — were the culmination of a two-day student filmmaking bootcamp held earlier this month.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.