Whenever the college’s gym was not being used by its athletic teams, it was rented out to outside parties.  In his administrative capacity, Doe had control over the gym rentals and scheduling.  Doe used the college facilities as his own cash machine, renting them out without the college’s approval and without the college receiving any compensation.  All told, his scheme diverted over $1,000,000 meant for the college.  

On numerous occasions between 2010 and 2016, Doe rented the gym to outside parties on “behalf” of the college.  Doe instructed the renting parties to make payments to entities that were not connected with the college but sometimes had very similar names to college-affiliated entities.  Doe controlled these entities’ bank accounts.  Brazenly, Doe many times simply directed that payment be made directly to him or his individual associates.  

Doe used the diverted funds on personal expenses, including renovations to his home.  His scheme improperly diverted over $1,000,000 in funds intended for the college. Doe’s crime went unchecked for years and is symptomatic of the lax policies and poor oversight controls found throughout small colleges across the country.

After the scheme was discovered, Doe pled guilty to embezzlement and misapplication concerning a program receiving federal funds. In 2018, he was sentenced to three years in prison and four years of supervised release.  Additionally, he was ordered to forfeit $800,000 and to pay that same amount in restitution to the college.