Shortly afterward, however, the attendees voted 109 to eject the Guardian from the room after discovering that a reporter was present.
New College's federal tax forms show that in late 2005, Gabel loaned the school $95,000 to cover operating expenses, and other records show that he loaned the school more than $400,000 in August 2007. As of May 2006, the school owed creditors nearly $6 million, New College's most recent federal tax forms show.
Despite WASC's sweeping indictment of the school's operation, New College's leaders indignantly responded in a June letter that the school was "shocked and even traumatized by the sudden abruptness of the investigation," which it claimed "lacked due process."
The school also denied that its administrators were reluctant to cooperate with the investigation and implied that complainants who first contacted WASC conspired to damage the school.
New College did admit, however, that Hamilton was duped by an exchange student who promised the school a sizable donation in return for help in attending classes after entering the country from Nepal. The student claimed he was a wealthy bureaucrat there but turned out to be more or less a con artist without money even to cover tuition.
New College has long served as an academic training ground for social justice advocates and liberal activists. In 2002 it made national news when it launched a green business master's degree that balances traditional marketing and management courses with sustainability concepts in an attempt to marry profit with ecological sensitivity.
Despite the challenges, Molina remains optimistic about the school's future: "Once we get our record-keeping offices in order so that we don't have delays processing the financial aid, things will start running smoothly." *
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