Prosecutor: No charges in Ball State investment scandal

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A prosecutor says Ball State University's investment of $13.1 million with two networks of criminals didn't violate Indiana securities law and no criminal charges will be filed.

Delaware County Prosecutor Jeff Arnold told The Star Press of Muncie that extensive reviews of records obtained by subpoena didn't reveal any evidence of securities violations.

Criminal investigations of former Ball State investment director Gale Prizevoits by federal prosecutors and the Indiana Secretary of State also produced no charges.

Prizevoits invested in highly risky mortgage bonds and obligations, and then altered records, conducted university business on her private email account and secretly signed contracts to avoid detection by superiors and auditors.

Ball State fired Prizevoits in 2011. She could not be located for comment.

A university spokeswoman says it has received $1.5 million in restitution.

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