Four former Kansas Athletics employees and one current employee have been federally charged and two former employees have pleaded guilty in a scandal involving millions of dollars of stolen tickets from the university.
Kansas University still hasn’t been billed for an internal investigation that documented the diversion of nearly 20,000 football and basketball tickets by five former employees and a paid consultant.
But the report likely will form the basis of insurance claims to recover some of the $1 million to $3 million in lost revenue attributed to the scam over a five-year period, investigator Jack Focht said.
“This is more (documentation) than they normally get,” Focht said.
The investigation, led by Wichita law firm Foulston Siefkin, stretched for two months before Focht joined Kansas University Chancellor Bernadette Gray-Little, Athletics Director Lew Perkins and University Counsel Jim Pottorff last week in unveiling the findings.
Included in the document were recommendations for fixing problems within Kansas Athletics Inc. and preventing future problems. Among the recommendations: Pursue reimbursement from insurance carriers for losses due to commercial theft — in this case, the diversion of tickets by employees for personal use and profit.
The department shouldn’t expect to recoup every penny lost, Focht said.
“They’re (likely) not going to be covered for everything,” he said. “I don’t even know what everything is yet.”
Focht said he’s been working “night and day” on the investigation, and has yet to send KU a bill. The chancellor’s office plans to charge Kansas Athletics for the cost of the investigation.
Results from federal investigations will be considered for prosecution through the U.S. Attorney’s Office, authorities have said. KU’s internal investigation — conducted by Foulston Siefkin, with assistance from BKD, a forensic accounting firm — did not address problems before 2005, nor any tickets involved in postseason play, such as the NCAA men’s basketball tournament or the Orange Bowl.
“We don’t begin to know the end of it,” Focht said.