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Archive for Wednesday, June 2, 2010

KU to seek insurance payment to cover losses from diverted tickets

June 2, 2010

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KU Ticket Investigation

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.

KU trying to recover money lost in scandal

Kansas University is trying to recover money lost during a ticket scandal through insurance claims. The university is estimated to have lost between one and three million dollars during the scandal. Enlarge video

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.

Comments

LJ Whirled 3 years, 10 months ago

Them tickets wasn't "diverted", they was done got stoled!

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Richard Payton 3 years, 10 months ago

Not certain the insurance company would have to pay out while a criminal investigation occurs. In fact, if fraud occurred the insurance company may be suggesting an internal investigation of their own.

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beobachter 3 years, 10 months ago

simply deduct from lew's paycheck

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whats_going_on 3 years, 10 months ago

hmmm...and why aren't the people responsible being held responsible for paying it?

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Richard Heckler 3 years, 10 months ago

Capital Journal calling for Perkins resignation today 6/3/10

Yes the feds have a lot of work to do before Lew Perkins can be cleared of all allegations with respect to many allegations which have surfaced:

  1. Player elgibility of current and former players? According to Dent.

  2. Ongoing ticket fraud/theft?

  3. How many gifts has Lew Perkins accepted?

  4. How does anyone know if all of the people stepping up on behalf of Perkins are concerned for their jobs or may well be implicated as well?

  5. What about preferential treatment for loaning of the equipment? I guess company financial records will need to be investigated.

  6. Does Dent being a disgruntled employee necessarily relieve the allegations of their validity?

  7. NO TO A GOLDEN PARACHUTE OVER MISCONDUCT AND POSSIBLE CRIMINAL ACTIVITY!!!

  8. Anyone that has been blackmailed 3-4 times is being rather reckless!!!

BRING KU HOME GAMES BACK HOME!

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sierraclub 3 years, 10 months ago

We need a new Chancellor and A.D.

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consumer1 3 years, 10 months ago

I am happy the chancellor knows who should be paying the bill for this.

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