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Monday, October 20, 2014

Ind. Gov't. - Ball State writes off $12.6 million from scam

Updating this Oct. 14th ILB post, yesterday Seth Slabaugh had a long story in the Muncie Star-Press that began:

RICHMOND – A report released Friday by a former federal prosecutor who investigated the Ball State University investment scandal does not include what everybody wants to know:

How did a lone employee, Gale Prizevoits, the former director of cash and investments, invest $13.165 million with two criminals without the knowledge of anyone else at the university?

"There was not a detailed, play-by-play report about what transpired and how these investment frauds were accomplished," Indianapolis attorney Rick Hall, chairman of the BSU board of trustees, told The Star Press on Friday, after he and President Paul Ferguson appeared before the State Budget Committee.

"That information was reviewed by (CPA firm) Crowe Horwath and (former U.S. Attorney) Deborah Daniels," he said, "and we will provide information in that regard to prosecutors, and they will make a decision as to who should be prosecuted."

Hall told the State Budget Committee, meeting in Richmond, that the university doesn't expect to recover any more than half a million dollars of the investments made with two perpetrators of securities fraud, one from Bronx, N.Y., and one from Boynton Beach, Fla. Both pleaded guilty to federal charges.

Posted by Marcia Oddi on October 20, 2014 10:09 AM
Posted to Indiana Government