What has Ball State done to make sure this doesn't happen again?
The Board of Trustees Audit and Compliance Committee now looks at the investment strategy and policy and reviews the investment portfolio regularly The university's whistleblower policy now has a hotline through an independent third-party Improvements have been made in the selection and authentication of brokerage firms All purchased securities are held for safekeeping through a registered third party. The schedule of reconciliations of accounts has been improved. External support and expertise have been engaged for the auditing of certain areas, such as information technology.Source: Bernie Hannon, vice president for business affairs and treasurerMore than four years after Ball State found out it may have been a victim of fraud, the investigation has concluded.
$13.1 million in investments was lost after Gale Prizevoits, the former director of cash and investments, made investments in violation of university policy and tried to conceal it. She was fired in October 2011.
Valerie Warycha, deputy chief of staff and communications director for Connie Lawson, said they don't talk about the details of their investigations, but they did not find any security violations.
After the university found out about the fraud cases, the university put a new checks and balances system into place, according to previous reporting. For example, the investment office wouldn't be able to buy security from brokers unless they're on a university pre-approved list.
In October 2014, the university announced in a press release it would count the remaining $10,022,705 still missing from the fraud as lost.
However, in August 2015, the university received a check for $694,763 from the U.S District Court. The money came from Seth Beoku Betts, a Florida investment adviser who is currently serving a sentence for fraud.
A management plan has been developed and put in place to make sure nothing like this happens in the future, said Bernie Hannon, vice president for business affairs and treasurer.
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