In 2011, Ball State was alerted that it was a victim of a fraud.
The fraud occurred in 2008 and 2010 and totaled at $13.1 million.
Gale Prizevoits, former director of cash and investments, made several high-risk investments without the university's knowledge - a violation of policy. She attempted to conceal the fraud from university audits by altering records and was fired Oct. 24, 2011.
The university has only been able to recover $542,295 out of the $13.1 million.
The university announced the fraud publicly last summer and hired Deborah Daniels of Krieg DeVault to review the university's internal controls. Daniels picked Crowe Horwath, an accounting firm, to help with the university's investigation.
The decision to prosecute a former Ball State employee involved in a $13.1 million fraud is still in the air as a member of the state house pressed Ball State’s president for an update last Wednesday.
During Ball State’s presentation of its biennium state budget request to the Indiana House Ways and Means Committee, State Rep. Terry Goodin (D-Austin) inquired to President Paul W. Ferguson about the progress in the prosecution investigation of Gale Prizevoits, former director of cash and investments let go on Oct. 24, 2011.
“This is a follow-up from the budget committee… But the lady that stole the money, has she been prosecuted?” Goodin asked Ferguson during the committee meeting. “And is the local prosecutor involved in any of the process… It seems that there might be some inaction at the local prosecutor to make sure this woman gets her due justice.”
Goodin said the question was a result of several months of silence on the topic of the fraud investigation. He was concerned the investigation was going to fall through the cracks. He said the timing of the question was appropriate because the committee was determining state funding for Ball State for the next two years.
The problem facing the investigation is whether or not Prizevoits committed any wrongdoing during the $13.1 million fraud.
The Indiana Secretary of State issued a statement that they are investigating the fraud following Rep. Goodin’s questions.
“We just want to know something is going on and that it is not getting slipped under the rug and the Secretary of State has indicated that,” Goodin said. “As a member of the Way and Means Committee it was my responsibility to ask questions about fiscal matters.”
President Ferguson assured Goodin that the university was following up with what to do with legal action against Prizevoits.
“We have not had indication [that her prosecution is] moving forward yet, but the conversations are ongoing,” Ferguson said during the committee meeting. “But we do not have a decision yet.”
Jeffrey Arnold, Delaware County prosecutor, would not give comment on the investigation or Goodin’s comments to The Daily News.
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