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Ball State says feds asked for quiet about fraud

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A top Ball State University administrator said the school kept quiet for more than two years about an $8 million securities fraud at the request of federal law enforcement authorities.

University treasurer Randy Howard said the school first learned about the troubled investment in 2011 and reported it to investigators. The investor involved was sentenced last week to four years in prison on federal wire fraud charges.

Howard told The Star Press that investor Seth Beoku Betts worked with a single Ball State employee who mischaracterized to her supervisors the 2008 investment in collateralized mortgage obligations. That employee was fired in 2008.

Indiana University law professor Antony Page said the case shows Ball State didn't have adequate internal controls over investment decisions.

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  • Psst...shhhhh!!!
    Uh so how much did this low level BSU employee lose? Crappy article why not tell us how much the bloated management team lost? That's why college is so expensive because of inept university leadership, stupid marketing and advertising campaigns and overpriced profs!

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

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