College of DuPage

COD-US Bank Part 7 – Circling the Wagons?

DuPage C0. (ECWd)

Robert Breuder – COD President, COD Foundation Ex-Officio, US Bank Advisory Board member / Marsha Cruzan – COD Foundation Board member, Foundation Treasure, US Bank President ChicagoCOD Foundation as a whole

Contract law-IRS Tax laws-Public relations nightmare?

Before diving into additional concerns with the COD – US Bank arrangement, let’s bring in the new players! 

Who hired a public relations/crisis management firm on behalf of COD?

So now we have three separate people who are all connected to US Bank and all three are making, or going to make money off of COD and the failures of its Administration led by Robert Breuder.  Mix that all up with legislatures screaming about audits and then bring in the mix a PR firm in which the House Speaker’s Son-in-law is a Senior Consultant, and we can only wonder, is there a whole lot more to the problems at COD?  Are things really that bad or are there some wagons that need circled as it relates to the exclusive no bid US Bank/COD contract matters we have been exposing?

Part 7!

The COD/US Bank contract spells out some very specific language in section 4 as it relates to the Banks obligations and payments to COD. It appears no one is paying attention to the details! (See Section 4 of the COD/US Bank Contract)

  • 4.1 “Bank shall pay to College to the attention of the Senior Vice President of Administration and Treasurer at 425 Fawell Boulevard, Glen Ellyn, IL 60137….”
  • 4.3.1 Bank shall pay, within 90 days of the opening of the On-Site Branch, and annually thereafter, a payment of $2,500 to be used for a U.S. Bank named sponsorship opportunity, to be; mutually agreed upon by the Bank and College.
  • 4.3.2 Bank shall pay, within 90 days of the opening of the On-Site Branch, and annually thereafter, a one-time payment of $2,500 to be used for a U.S. Bank named scholarship opportunity, to be mutually agreed upon by the Bank and College.
  • 4.3.3 Upon reaching 3 ,000 active checking accounts opened at• the On-Site Branch, Bank shall make a royalty payment of $5,000 to College. Upon reaching 5,000 active checking accounts opened at the On-Site Branch, Bank shall make a royalty payment of $10,000 to College. Upon reaching 7,500 active checking accounts opened at the On-Site Branch, Bank shall make a royalty payment of $12,500 to College. Upon reaching 10,000 active checking accounts opened at the On-Site Branch, Bank shall make a royalty payment of $15,000 to College. Thereafter and for each additional increment of 2,500 active accounts opened at the On-Site Branch, Bank shall make a royalty payment based upon the total existing number of active accounts opened at the On-Site Branch multiplied by 1.6. 1

Who are these payments to be made to?
The College of DuPage!

Is ANYONE paying attention to what is going on with this contract?

Read page 2 of the communications from the Assistant to the Senior Vice President of Administration and Treasurer sent to Thomas Glaser, the Senior Vice of President Administration and Treasurer (Click here to read the e-mail exchange on this!)

“Can you help with what this check is for? No one here seems to know why it arrived and for what.”

What does Glaser do? You know, the Senior Vice President of Administration and Treasurer who is supposed to be the one US Bank checks are paid to? He forwards the email to US Bank for them to explain to him what it is for! A day later they tell the COD treasure what the payment is for. (Click here to read the e-mail exchange on this!)

First problem, why didn’t Glaser know a rent payment was past due and be on the lookout for it? Why has he yet to collect the past due rent which is 4 months’ worth? Once again, the team that bragged about their internal controls is exposed by their own e-mail communications! (Click here to read the e-mail exchange on this!)

That’s minor compared to this!

I asked COD for a copy of all money received from any bank or Credit Union as part of a contractual obligation for banking or credit union services being provided on campus since 2009”

The only thing COD produced was a copy of payments that equate to rent payments, minus the first 4 months of the contract. I have to assume, since we know COD would never violate FOIA, the records provided are complete. (Click here for what they provided)

Paying particular attention to sections 4.3.1, 4.3.2, 4.3.3. (See Section 4 of the COD/US Bank Contract)

The first two are annual payment requirements to be paid to COD and used as a US Banked name sponsorship and scholarship opportunity that is mutually agreed upon by the bank and the college.

Those annual payment obligations by contract total $5,000.00 and have never been paid to COD!

We do find a US Bank Scholarship fund for $5,000.00 in March of 2013 to the COD Foundation however no sponsorship is noted, which was required in the contract, only scholarships. Also note that the Foundation IS NOT the College of DuPage! Is this supposed to represent the annual scholarship payments in the contract? (See board packet for payments highlighted pages 20 and 21)

We see in the July 2013 board packet another $5,000.00 US Bank COD Foundation payment for another scholarship fund. Is this to cover the $5,000.00 royalty obligation for signing up 3,000 new checking account customers? (See page 24 of board packet)

In August of 2013 we see another $10,000.00 US Bank COD Foundation payment for another scholarship fund. Is this $10,000.00 tied to the same $10,000.00 obligation if US Bank Signs up 5,000 new checking account customers as outlined in 4.3.3 of the contract? (See page 28& 29)

The next series of royalty payments, assuming targets were met by the bank, would be for $12,500.00, then $15,000.00 obligations. We do not find any corresponding payment for the $12,500.00 checking account target set but there are two payments totaling $15,000.00 paid to the Foundation.

One $5,000.00 payment in December of 2013 –(See Page 20 & 22)– Another $10,000.00 in December of 2014 –(See page 27).

Was the $12,500.00 payment obligation overlooked?

So where am I going with this?

It is clear, COD has not been paid their portion of mandatory items for items 4.3.1 and 4.3.2 as outlined in the contract. Thus, US Bank not only owes for 4 months’ rent never paid, they also owe $15,000.00 to the College of DuPage to be used as sponsorships and scholarships.

How do we come up with $15,000.00 owed?  Note the two $2,500.00 payments outlined in 4.3.1 and 4.3.2 are “annual” payment obligations which total $5,000.00 for the 2013 opening payment, another $5,000.00 for 2014, and now that it is March of 2015, there should be another $5,000.00 payment making a total of $15,000.00 that has yet to be paid to COD under this contract.

I suspect we are going to hear from COD and based on what we are hearing from several people, they are going to claim the payments US Bank made to the Foundation were those payments outlined in section 4.3.1, 4.3.2, and 4.3.3.

MAJOR PROBLEM WITH THAT POSITION!

COD Foundation is not who US Bank has a contract with for starters. More importantly, the Foundation is a nonprofit 501c3 organization which raises some questions that I am sure some fine accountants could answer.

  • Are there tax advantages to US Bank to make those payments to a Public Charity instead of the College?
  • Is this part of the Breuder plan so that he could build up the Foundation and then brag about his accomplishment?
  • Is not paying the college a contract violation?

The contract obligates US Bank to pay the College of DuPage, not the COD Foundation.

Since COD has not been paid anything other than rent on this contract, it appears to be pretty clear we have a breach of contract.

Breuder Bragging Points

  • Strengthened the College of DuPage Foundation with the addition of new leadership and staff, with total assets listed as $14.4 million for FY 2014.
  • More than doubled the number of scholarships awarded by the COD Foundation from 300 in 2009 to more than 600 in 2014.
  • The Foundation raised $11.2 million in private support and public grants during FY14, representing the largest amount raised in the history of College of DuPage. (Click here for Brueder bragging points)

So was the US Bank contract obligations a smoke and mirrors operation used to help build up the Foundation financial numbers?

Once again, lack of over-site from the team that bragged on themselves is exposed! A simple contract with payment obligations to the College and no one is paying attention, from the first rent check received late to what is now thousands of dollars of debt owed COD!

All indications are this falls directly on the shoulders of their financial king pin, Thomas Glaser and the King himself, Robert Breuder!

All of the above information is based on the assumption that COD has complied with the FOIA law and provided all the records requested.  If they produce something after this publication then those responsible should be charged criminally for concealing public records!

6 replies »

  1. After reading today’s (3/20) Trib, I felt like I had attended the wrong meeting. Their headlne screamed about COD going forward with an intense investigation. Huh? Where was that? What I got out of the meeting was that the Board attorney, on his own, contracted with a Chicago public relations firm (Res Publica) and put the taxpayers on the hook for their spin services in covering up the asses of the Board of Trustees.

    Did they somehow “get” to the Chicago Tribune which had thus far been spot on in highlighting the corruption on the Board?

  2. Is money being funneled to Mike Madigan via Jordan Matyas to prevent an audit and prevent Lisa Madigan from investigating? How deep does this conspiracy go? Is the FBI investigating?

    • This criminal conspiracy goes deeper than our FBI, obviously. Our FBI will NOT investigate these people, only tell the public they will. These people (secret societies) protect each other, one hand washing the other, obviously. This criminal conspiracy goes deeper, to FISA courts and “national security” supposedly they claim, the ends justify the in their minds eye .

      American people need to understand that our government is targeting anyone who exposes the TRUTH, and especially those who provide EASILY VERIFIED evidence PUBLICLY….like this website does. Be aware anyone accessing this information here on this website or anywhere is a target now, a so called “person of interest” now, who is being monitored by our NSA dragnet. This will never end, until We the People demand it, obviously. Have a nice day.

      • Chris, no one has claimed or proven that there is any criminal conspiracy. I have never been given any indication that the FBI or any other law enforcement agency is involved in a secret society and I think making such statements only contributes to peoples already fading trust in those agencies. We dont need that! We have been exposing the truth and other than political hacks, no law enforcement is targeting us. You statement is inflammatory and provides no valuable input to move things in the direction of being corrected. I do appreciate you sharing however I must ask that you try to condense you comments and stay on point to the article at hand. If you have a LOT you wish to write, send it to us as a Letter to the Editor. Although we make no promise that ever letter gets published, we have published several in the past.

  3. Questions remain, lots of unanswered questions remain and that’s unacceptable to me and We the People.

    A few are… When will these criminals posing as our public servants be held accountable for their actions? If not ever held accountable… WHY NOT!? Why not?

    ANSWER: Public Corruption and collusion with our law enforcement agencies and our justice system and our politicians, obviously. Will We the People hold our public servants accountable for all this public corruption? I do and will, will you? WHY NOT? How will you do that? Seriously, how? Consider your options now, sooner rather than later. How?

    “Implementation is the only TRUTH” Quote from Chris Tolles Co-Founder and CEO of Topix/Polix forums. Do you understand that? Implementation is vital in all this. Get MORE informed. Get MORE involved. Take action NOW not later, NOW TODAY! Please. Thank you.

    Be the change you want to see happen in our society. Quit playing games and blaming other people, start with yourself? We are our own worst enemy, evidently. We become what we think about the most, fact. What are you thinking about today? Yourself and your selfish desires or other people and their desires and THEIR needs? I pray to Jesus Christ it’s the latter. We all should obviously.

    Pray MORE. Do more. Quit making excuses why you can’t or won’t do something, anything, please. Have a nice day today, everyday. Choose your own destiny, and quit allowing other people to decide it for you, stand up and take responsibility, please.

    People do things, because they EITHER they can do it OR can’t do it. Fact. What can you do today? Alot more obviously. Question is, will you? And what, and how? Implementation is key in all this. Please consider that. Thank you.