OSHKOSH, Wis. (AP) — Officials with the University of Wisconsin-Oshkosh’s private fundraising foundation say they will file for bankruptcy in the wake of a scandal involving a former chancellor and his chief business officer tied to several real estate ventures.
The Journal Sentinel reports that the foundation filed a reorganization petition under Chapter 11 of the federal bankruptcy laws.
Foundation chairman Tim Mulloy says the voluntary action will protect the university’s endowment, allow restructuring and help the foundation resume its mission of supporting UW-Oshkosh.
The real estate projects were the subject of a lawsuit the UW System filed in January against former Chancellor Richard Wells and his chief business officer.
The complaint alleges that they improperly funneled $11 million in university money into the projects through the private foundation.