Just received this via e-mail from the St. John's Board of Trustees regarding the independent investigation into issues raised by the Cecilia Chang Matter. Letter is below and it can also be viewed at the link provided.
http://alumni.stjohns.edu/default.aspx?page=ViewEmail&j=1418&g=15198B6D-24FB-44F3-AD52-A304B86F3728
To: Alumni Community
From: Peter P. D'Angelo '78MBA, '06HON
Chairman, Board of Trustees
Re: Update
Date: Friday, August 23, 2013
Dear Fellow Members of the St. John's Alumni Community:
In keeping with my commitment to the University community, I am writing to inform you that the independent investigation into issues raised by the Cecilia Chang matter has been concluded.
The investigation was conducted by Frank Wohl, a partner in the law firm of Lankler Siffert & Wohl LLP. Mr. Wohl is a highly regarded attorney with more than 40 years of experience in both criminal and civil matters. He is a former federal prosecutor in the U.S. Attorney's Office for the Southern District of New York, at various times serving as Chief of its Civil Division and Deputy Chief of its Criminal Division. He is also past President of the Federal Bar Council and has chaired numerous New York City Bar programs on ethical and strategic issues in corporate investigations.
Mr. Wohl conducted a full and independent investigation and received the complete cooperation of the University Board and administration. In the last several months, Mr. Wohl and his team had extensive interviews with current and former employees and thoroughly examined all relevant evidence and information including material from the original Chang investigation.
The Wohl investigation has determined that, although the University had policies in place concerning conflicts of interest, financial relationships and appropriate dealings with vendors, there were errors in judgment by Rev. Donald J. Harrington, C.M. and Robert Wile that led to conflicts of interest and failures to fully disclose those conflicts to the Board of Trustees. These included a real estate transaction involving Father Harrington and Mr. Wile; a short-term loan by a former member of the Board of Trustees to Father Harrington and Mr. Wile in connection with that real estate transaction; and a personal loan made by a University vendor to Mr. Wile. Mr. Wohl found that none of these transactions caused financial harm to the University.
Mr. Wohl also found that no one in University management was aware of Cecilia Chang's intricate fraud scheme. He found that her fraud was facilitated by the failure to require strict compliance by Chang with the University's financial controls. In addition, various University personnel accepted personal gifts from Cecilia Chang, which created the appearance of conflicts of interest. Where appropriate, the recipients of those gifts have voluntarily agreed to make restitution to the University.
Mr. Wohl concluded that there was no criminal wrongdoing by any of these individuals or any member of the St. John's leadership team.
These events should be viewed in the context of 24 years of dedicated leadership and service by Father Harrington, who retired as President last month. Also, earlier this summer, Mr. Wile resigned as Senior Vice President of Institutional Advancement and Athletics and Chief of Staff to the President.
Following the disclosure of Cecilia Chang's crimes, a number of measures were immediately implemented to expand the University's internal controls and enhance its policies. Some of the changes included a process of regular one-on-one meetings of the Director of Internal Audit and the Board of Trustees Audit Committee, revising the conflict of interest policy, establishing a business ethics training program for all managers, and instituting an employee procurement card program to replace employee credit cards.
In light of the Wohl investigation's findings, the Board has directed Mr. Wohl and University General Counsel, Joseph Oliva, to make additional recommendations to ensure that St. John's has the controls, policies and practices to foster and maintain the highest ethical standards across the University. The Board of Trustees will review these policies on an annual basis to ensure that we are following best practices at all times.
We have begun the search for a permanent candidate to serve as President of St. John's University, a process expected to continue over the coming months. As we look ahead to a new academic year, we are confident that under the leadership of Interim President Rev. Joseph L. Levesque, C.M., the University's outstanding faculty, administrators and staff will remain dedicated to the accomplishment of our mission as a Catholic and Vincentian University and to the continued success of our students.
Thank you.
Sincerely,
Peter P. D'Angelo '78MBA, '06HON
Chairman, Board of Trustees
http://alumni.stjohns.edu/default.aspx?page=ViewEmail&j=1418&g=15198B6D-24FB-44F3-AD52-A304B86F3728
To: Alumni Community
From: Peter P. D'Angelo '78MBA, '06HON
Chairman, Board of Trustees
Re: Update
Date: Friday, August 23, 2013
Dear Fellow Members of the St. John's Alumni Community:
In keeping with my commitment to the University community, I am writing to inform you that the independent investigation into issues raised by the Cecilia Chang matter has been concluded.
The investigation was conducted by Frank Wohl, a partner in the law firm of Lankler Siffert & Wohl LLP. Mr. Wohl is a highly regarded attorney with more than 40 years of experience in both criminal and civil matters. He is a former federal prosecutor in the U.S. Attorney's Office for the Southern District of New York, at various times serving as Chief of its Civil Division and Deputy Chief of its Criminal Division. He is also past President of the Federal Bar Council and has chaired numerous New York City Bar programs on ethical and strategic issues in corporate investigations.
Mr. Wohl conducted a full and independent investigation and received the complete cooperation of the University Board and administration. In the last several months, Mr. Wohl and his team had extensive interviews with current and former employees and thoroughly examined all relevant evidence and information including material from the original Chang investigation.
The Wohl investigation has determined that, although the University had policies in place concerning conflicts of interest, financial relationships and appropriate dealings with vendors, there were errors in judgment by Rev. Donald J. Harrington, C.M. and Robert Wile that led to conflicts of interest and failures to fully disclose those conflicts to the Board of Trustees. These included a real estate transaction involving Father Harrington and Mr. Wile; a short-term loan by a former member of the Board of Trustees to Father Harrington and Mr. Wile in connection with that real estate transaction; and a personal loan made by a University vendor to Mr. Wile. Mr. Wohl found that none of these transactions caused financial harm to the University.
Mr. Wohl also found that no one in University management was aware of Cecilia Chang's intricate fraud scheme. He found that her fraud was facilitated by the failure to require strict compliance by Chang with the University's financial controls. In addition, various University personnel accepted personal gifts from Cecilia Chang, which created the appearance of conflicts of interest. Where appropriate, the recipients of those gifts have voluntarily agreed to make restitution to the University.
Mr. Wohl concluded that there was no criminal wrongdoing by any of these individuals or any member of the St. John's leadership team.
These events should be viewed in the context of 24 years of dedicated leadership and service by Father Harrington, who retired as President last month. Also, earlier this summer, Mr. Wile resigned as Senior Vice President of Institutional Advancement and Athletics and Chief of Staff to the President.
Following the disclosure of Cecilia Chang's crimes, a number of measures were immediately implemented to expand the University's internal controls and enhance its policies. Some of the changes included a process of regular one-on-one meetings of the Director of Internal Audit and the Board of Trustees Audit Committee, revising the conflict of interest policy, establishing a business ethics training program for all managers, and instituting an employee procurement card program to replace employee credit cards.
In light of the Wohl investigation's findings, the Board has directed Mr. Wohl and University General Counsel, Joseph Oliva, to make additional recommendations to ensure that St. John's has the controls, policies and practices to foster and maintain the highest ethical standards across the University. The Board of Trustees will review these policies on an annual basis to ensure that we are following best practices at all times.
We have begun the search for a permanent candidate to serve as President of St. John's University, a process expected to continue over the coming months. As we look ahead to a new academic year, we are confident that under the leadership of Interim President Rev. Joseph L. Levesque, C.M., the University's outstanding faculty, administrators and staff will remain dedicated to the accomplishment of our mission as a Catholic and Vincentian University and to the continued success of our students.
Thank you.
Sincerely,
Peter P. D'Angelo '78MBA, '06HON
Chairman, Board of Trustees
