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Ivy Funds Caught Up In Loan Shark Accusations

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Harvard, Yale and Princeton universities' endowments are being accused of backing a loan with 42 percent interest, twice the legal limit, according to a lawsuit filed by a developer who borrowed the money.

The three Ivy League schools, along with three other universities and two foundations, are named in a civil complaint in state court in Boston alleging they violated a law aimed in part at loan sharks, who make loans with excessive interest rates backed by threats of violence. Fred Fahey, a Dracut, Massachusetts, developer who filed the suit, planned to build a golf course community with money borrowed from Realty Financial Partners, a firm in which the schools invested.

Read the whole story at Bloomberg