The money mess is not too public. I know about it because I'm on the college newspaper staff (
www.avionnewspaper.com ...sorry I know its a cheap plug, but we just got the new site up).
The staff, especially in the aeronautical science department, has a reputation for being smug and making student's lives more difficult.
I wouldn't worry about the quality of the pilots who come from Riddle though. They have a great reputation of being well-trained. The school makes you follow a bunch of procedures way above and beyond what the typical FBO makes you do, which makes for graduates who integrate into the airline environment very well. All I'm saying is that its not difficult to get into Riddle...successfully graduating is another story.
I'll try to get more details on the financial woes and get them posted up here.