WASHINGTON — In an audit of $57.5 million of variable demand revenue bonds issued by the Illinois Health Facilities Authority in 2003, the Internal Revenue Service is focusing on the actions of two former members of the Rosalind Franklin University’s board of trustees who have pleaded guilty to defrauding the university and orchestrating kickback schemes.

The audit, which the IRS began on Jan. 9, was disclosed in a material event notice filed with the nationally recognized municipal securities information repositories yesterday by the Illinois Finance Authority. The IFA replaced the IHFA in 2004. The bonds were issued through the conduit. The university was the borrower.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.