Professor Elam

Wednesday May 10, 2017

Krystle  August, Pete Galvan, Veronica Garza, Juan Mendoza – Robert Scully Fraudster in San Antonio

This is interesting in that the whole thing happened between SA and Thailand. He defrauded the IRS and his partners by hiding income and inflating prices. As KPMG learned, the IRS does not take abuse kindly!  Scully got a whopping 15 years jail sentence, restitution, 3 years supervised release, and a fine. Notably none of the fraudsters in the Drexel Burnham fraud  got anything close to that.

Xiaodan Ye and Vicky Chen – Health Care Fraud

This case examines how James Reynolds Sr created four charities which were mere fronts to funnel money to his own family. Only 2.5% of the $187 million raised went to charity. As the students ask, why didn't donors look for an audit?  Where was the supervision?

Nick Forge – Higher Ed Financing

Nick took a look at a topic I raised in class, how funds are allocated among the Main Campus of UT and College Station versus their regional campuses. As he notes UT now has its own endowment which is twice the size of the Permanent Fund. He features a good circle graph showing cuts to regional campuses. How about some revenue sharing from the top down?