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Forbes Topline

How One Billionaire Lost Millions And Left Underserved Scholarship Students In Limbo

Forbes Topline

Forbes

News, Entrepreneurship, Business, Business News

4.86 Ratings

🗓️ 24 April 2024

⏱️ 20 minutes

🧾️ Download transcript

Summary

On March 21, the roughly 70 employees of the Schuler Education Foundation, based in the affluent suburb of Lake Forest, Illinois, were summoned to an emergency all-hands meeting. Over the past two-plus decades, the nonprofit founded and funded by a former president of healthcare giant Abbott Laboratories, Jack Schuler, had spent at least $150 million counseling and tutoring more than 1,800 low-income students from Chicago and Milwaukee-area high schools to help them gain admission to elite colleges; those colleges in turn covered most (if not all) of the students’ tuition and other costs. The employees, who first had to certify they wouldn’t record anything, were let into a Zoom room where the nonprofit’s executive director Joanne Bertsch read from a script announcing that the foundation would shut down on May 24. Everyone would be let go except for a skeleton crew of seven college counselors left to support students through August. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hi, my name is Jachim Watanyini, and I am a staff writer on the wealth team here at Forbes.

0:07.0

Today I'm here with my colleague Mad Duro.

0:08.0

Hey Mad.

0:09.0

Hey, Mad.

0:10.0

Hey, Mad.

0:11.0

And we're here to talk about our recent investigation on the Schuller Education

0:14.3

Foundation. So to get started, Matt, let's talk a bit about the foundation

0:19.8

and sort of how we learned about the story in the first place.

0:22.4

Sure. sort of how we learned about the story in the first place.

0:23.1

Sure.

0:24.7

So Jocomo had actually written a story

0:28.3

about Jack Schuller, the founder of the foundation

0:31.2

a few years back.

0:33.0

I think it was early 2021.

0:36.0

He joined our billionaires list for the first time

0:39.0

thanks to, so basically he was nearly 30 years ago the former president of

0:46.7

Abit Laboratories a health care giant and after being fired from there sort of

0:51.7

reinvented himself as a pharmaceutical and health care

0:55.0

investor. So you know over three decades or so he did well enough investing

1:01.8

health care stocks to make our billionaires list for the first time

1:06.1

So that is sort of how he became acquainted with him at the very beginning

1:11.0

And as part of Giacomo's story, you know, around that time his foundation had made a big

...

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