Scandal prone University of Louisville now under investigation by FBI

Some universities appear to have a penchant for getting in the news for all the wrong reasons. Take the University of Louisville. In the last two years the university has courted controversy for a number of unrelated issues:

  • Last year several university officials went to prison for fraud and embezzlement of more than $7 million in university funds.
  • In October the National Collegiate Athletic Association (NCAA) announced an investigation of the university’s basketball program after a former escort alleged former coach Andre McGee paid for strippers and sex for players and recruits
  • In November President James Ramsey, whose staggering US$2.5 million salary was controversial enough, was accused of racial insensitivity when he and senior staff posed for a photograph at a university Halloween party wearing stereotypical Mexican garb (he has since issued a public apology)

Now, the Courier-Journal has reported that the FBI is investigating top university officials for possible misuse of federal grant funds. Under investigation are David Dunn, the university’s executive vice president for health affairs, and Priscilla Hancock, its chief information officer, for misuse of federal money for private purposes. Both have been placed on leave.

Ramsey is facing increasing pressure to resign as head of the troubled university, but so far he is standing firm and appears to have the support of the Board of Trustees. His future, however, will likely hinge on the outcome of the new investigations and how much fault can be attributed to poor stewardship from the senior university leadership.

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