Leslie Berlowitz, the Bremmer Foundation…

… these sorts of obscenely greedy non-profit people/institutions are a perennial source of amusement at University Diaries, passionate as we are here about hypocrisy at its most pious. And it doesn’t get any more pious than the non-profit world, where it’s all for Art, for God, for Enlightenment… for Humanity, dammit!

But chauffeur-driven Berlowitz and the astoundingly overcompensated trustees of Bremmer are teeny weeny greed/hypocrisy tales… Their organizations are too runty to make much of a ruckus when local reporters force open the books and expose everyone. There’s a pleasure in the revelations, to be sure; but it’s a modest pleasure, like drawing on a Cuban cigar while standing on a fine-sand beach on a clear night… Happy-making, but circumscribed…

And then there’s the ABIM.

Let us take a trip mise en ABIM – into the abyss of the American Board of Internal Medicine, as it buys multimillion dollar apartments which offer owners chauffeur driven late model BMWs because American medicine will never obtain optimal patient care unless the ABIM trustees can stay in this apartment when they’re passing through Philadelphia…

The ABIM has figured out over the years that its monopoly on the recertification of doctors means they’ve got the men by the balls and the women by whatever you get the women by. You wanna practice, you gotta stay certified. So…

1. charge tens of thousands of dollars for the test and for test prep materials; and

2. constantly increase the number of tests that have to be taken.

Through these clever expediencies, this non-profit has accumulated tens of millions of dollars for itself! We’re talking tens of thousands of doctors after all! There’s nothing runty about it! And you can’t argue with the results:

[I]n 2001—just as the earliest round of new-test standard was kicking in—the ABIM brought in $16 million in revenue. Its total compensation for all of its top officers and directors was $1.3 million. The highest paid officer received about $230,000 a year. Two others made about $200,000, and the starting salary below that was less than $150,000. Printing was its largest contractor expense. That was followed by legal fees of $106,000.

Twelve years later? ABIM is showering cash on its top executives—including some officers earning more than $400,000 a year. In the tax period ending June 2013—the latest data available—ABIM brought in $55 million in revenue. Its highest paid officer made more than $800,000 a year from ABIM and related ventures. The total pay for ABIM’s top officers quadrupled. Its largest contractor expense went to the same law firm it was using a decade earlier, but the amounts charged were 20 times more.

But then it turns out that you can’t just keep increasing your salary and your tests and your real estate portfolio forever. A tipping point will eventually be reached, and here the tipping point is named Paul S. Teirstein. Teirstein points out that

The ABIM is a private, self-appointed certifying organization. Although it has made important contributions to patient care, it has also grown into a $55-million-per-year business, unfettered by competition, selling proprietary, copyrighted products.

So Teirstein has introduced competition, starting his own certifying organization:

The group’s fees are much, much lower than those charged by the ABIM. And its board and management—all top names in medicine—work for free.

“Yeshiva U. Board’s Culture of Risk-Taking Led to $500M …

… Meltdown.”

That being the case, this letter from the trustees to that school’s students is the very definition of chutzpah.

Having royally fucked the now junk-rated school through greed and irresponsibility, its trustees turn around and lecture its students.

Sometimes change can create concern. But the fact is that change needs to be embraced, and change provides an opportunity to make improvements in our structure, and in the way we support the needs and aspirations of our exceptional students.

Don’t be scared, boys and girls! We were nervous before we invested all that money with Bernard Madoff and Exra Merkin, but we had the courage to do it! And that was only one of the practically criminal financial risks we took with your money! Make us – epitomized by the most high-profile among us, Zygi Wilf – your model of personal behavior!

****************

Let UD just say this for the record: If she were a Yeshiva University student, professor, or graduate, she would have serious anger issues.

“[G]ross neglect … management ineptitude, and … trustee leadership absent without leave.”

AKA Yeshiva University.

Reynold Levy, in an article about the failure of some significant New York City non-profits, singles out Yeshiva:

Teetering on the brink is Yeshiva University, together with its Einstein School of Medicine and its Cardozo Law School… Where were the board members, whom we assume were holding [Yeshiva and other] precious agencies accountable for prudent and responsible service to others? How is it possible that they utterly failed to exercise basic fiduciary responsibilities? What explains the apparent absence at these institutions of due diligence and the checks and balances normally afforded by well-functioning finance, audit, investment and executive committees? And what about government oversight for [institutions like] Yeshiva …on the receiving end of major public grants and contracts?

Yeshiva’s massively overpaid president, who oversaw the destruction of this school, remains in charge.

Jay Michaelson on Rabbi Professor Freundel

When I lived in Washington, I attended Kesher Israel regularly. It was a thrill to sit behind Senator Joseph Lieberman, Leon Wieseltier and other luminaries of the American Jewish scene. They and many others took pride in articulating a literate, intelligent Modern Orthodox Jewish sensibility – and Freundel was an exemplar of it…

All this time, he was a sex offender, a fraud and a pervert.

… [T]he Freundel scandal looks a lot like the Madoff* scandal. There are questions that should have been asked, suspicions that should have been raised. But the self-reinforcing loops of elite power — X likes him, X is powerful, therefore I should like him — blinded those entrusted to keep watch.

And then there are the nonsexual allegations. One of Freundel’s victims, Bethany Mandel, told The Daily Beast that we’ve gotten Freundel wrong. “People keep calling him a pervert and yes, he’s a pervert, but he’s also a power hungry sociopath,” Mandel said. “It wasn’t about porn. It was about power, and this was additional power no one knew he had.”

This, too, should have been visible in plain view to anyone who worked closely with Freundel.

… It can seem, downing a shot of whiskey with someone of influence, that you are in the presence of greatness. Really, you are only in the presence of power.

*********************

* Board Chair, Sy Syms School of Business; Honorary Degree recipient; Treasurer, Board of Trustees — all at Yeshiva University.

‘He has argued that the school’s investment performance is no worse than other universities.’

Once again, Yeshiva University’s president – one of the highest-paid university presidents in the country – shows – in the statement above – his keen grasp of fiscal realities.

From Bloomberg Business, this morning:

Of [American universities] with endowments of more than $1 billion, only one lost money last year: Yeshiva University, which shrunk 7.6 percent to $1.09 billion…

*****************************

No wonder Yeshiva’s medical school faculty is in a funk.

“We have gone from one bumble and stumble and scandal to another.”

And although things have gotten so squalid at the University of Louisville that some members of the board of trustees have begun to complain, UD trusts that the tightly wound little ball of corruption that is UL will continue to bounce about the collegiate landscape, unobstructed by rationality or responsibility, for a long time to come.

The school people call not the U of L but the U of Smell has for years been one of the great stalwarts of this blog, generating financial, academic, and (of course) athletic scandals with Stakhanovite vigor. An important component of the U of Smell’s success has been absolute control of an absolutely worthless board of trustees, a board of trustees that spends its meetings fiddling while Smell burns. Now suddenly a few serious people on the board are threatening to sweep the BOT’s tinker toys off the conference table; they are “call[ing] for changing the focus of board meetings from ‘ritual and ceremony’ to the ‘business of the university.'”

To which UD says whoa. You are talking about changing a board of trustees whose model has been the imperial family of Japan to a board that functions as a policy-oriented unit. Forget it.

“I don’t understand why the board doesn’t hold [Joel] accountable and fire him.”

So, let’s go there. Let’s pose the question that anyone with even a smidgeon of information about Yeshiva University over the last few years has posed: Why does that university’s grossly incompetent, buck-passing president retain his job?

UD suggests that the answer to the question lies within the question as posed up there in her headline. The board. Why doesn’t the board of trustees at Yeshiva University fire its president?

Well, let’s consider a few present and past board members of that institution. Zygi Wilf, a very powerful board member (an entire campus of YU bears his last name), was a few months ago convicted of “fraud, breach of contract and breach of fiduciary duty.” Ezra Merkin, Bernie Madoff’s right hand man, has paid out hundreds of millions of dollars in fraud suits, and there are tons more fraud suits pending against him. Bernie Madoff himself of course was treasurer of Yeshiva’s board of trustees, plus he chaired the board of Yeshiva’s Sy Syms School of Business. Until recently, conflict of interest was rife on Yeshiva’s BOT.

UD wonders. Maybe Joel doesn’t go because he knows too much. About the board of trustees. Maybe there’s more where that other stuff came from.

********************

One more thing: UD suspects the I could puke factor is also increasingly at play at Yeshiva. Whether in terms of alumni gifts or enrollment, I have to assume that part of Yeshiva’s financial catastrophe involves larger and larger numbers of people just saying Look – the sex scandals (hard to keep track of these, but for those counting, here’s the latest), the money scandals, the conflicts of interest, the lying, the criminals on the BOT… All in the context of Yeshiva’s piously self-righteous self-representation… Yick. It’s just too much. Forget it.

The Pride of USC

The University of Southern California couldn’t ask for a better trustee. John Martin just priced his desperately-needed hepatitis medication at $1,125-per-pill. Last year he gave himself $180 million in compensation. (Read what a columnist at Forbes, of all places, thinks of John’s take-home pay.)

Yes, when it comes to modeling ethical behavior for a university’s students, when it comes to bringing that certain something to the running of a university, Brown University’s famous Steven Cohen (now that the SEC has forced him to close the shop) can’t do better than USC’s very own John Martin.

“[My opponents are invoking the] cynical rhetoric of class warfare.”

For those of us impatiently awaiting Tom “Kristallnacht” Perkins’ successor, Vinod Khosla has arrived not a moment too soon. It’s his beach, and he’ll sue all the way to the Supreme Court if he has to.

There’s even a wonderful mine, mine, all mine cosmic convergence here: For years, Khosla worked for Tom Perkins’ venture firm.

***********************

Khosla has progressive academia’s endorsement as a trustee of Berkeley’s Blum Center (and Mr. Blum... eh. Nuff said.)

Maybe Robert Reich, who has been eloquent on the corrosive social and moral effects of income inequality, can take Khosla aside for a chat. Reich too is on the Blum board.

More Trouble for Brown University’s Highest-Profile Trustee, Steven Cohen…

… as a judge refuses to stop a big insider trading case against him.

*****************

Trouble? Given Cohen’s utterly shocking market behavior, and the resulting extensive litigation against him which will last for the rest of his life, and given his apparently unassailable position of trust at the top of one of America’s best-known universities, UD begins to think she’s gotten it all wrong. UD begins to think that trustee-selection-wise, a long record of SEC investigation and outraged investor lawsuits is an advertisement for the position of university trustee.

UD‘s not sure why this is. She is a babe in the woods – most of us are – when we’re talking about the kind of money Brown is targeting in targeting Steven Cohen (personal fortune: close to ten billion dollars). Are they thinking in terms of a delicate, sophisticated trade-off involving delicate sophisticated timing? As in – We’ll be able to peel off a couple billion before he has to go to jail. Our PR people will be able to control the PR fallout of our association with him. Or is it far more straightforward? “Insider trading” is a bogus designation essentially describing nothing less than the working reality of all capital market players. Eventually the world will catch up to this truth, and all penalties and investigations of people like Cohen will vanish. Indeed these people will become martyrs, and we’ll be praised for having stayed the course with them.

Who hired him?

That’s the question. Certainly the entire Westfield State University board of trustees should go. But there must have been others at the university who hired as president a man whose character and actions were already fully known.

… [Evan] Dobelle [got] into similar trouble for his lavish spending at previous jobs, including at the University of Hawaii and the New England Board of Higher Education. In Hawaii, the board of regents unanimously voted to terminate his seven-year contract in 2004 after just three years because of his wasteful spending and ever-shifting explanations…

“There has been a lack of accountability, lack of fund-raising progress, lack of a sense of stewardship, ignoring the most basic policies,” then-regents chairwoman Patricia Lee said, according to the minutes of the Hawaii board’s June 15, 2004, meeting. “But, most importantly, his dishonesty and lying are most troubling.”

How stupid does your institution have to be to hire a person with this record?

He … commissioned a portrait of himself, contacting a local artist in 2013, and sent the $777.75 bill to [Westfield State’s] foundation after the fact. The portrait remained in a closet to be unveiled at an event for the 175th anniversary of the university in 2013. After Dobelle resigned, school staffers didn’t want the painting and shipped it to Dobelle.

So okay. Here are a couple of names for you. Diamandopoulos. Slade. So now we have the names of three university presidents who came in with crushing egos and big talk and proceeded to strip everything on campus except the interior wiring. Can even schools like Hawaii and Westfield State learn from this?

North Carolina State University Community:

Enlarge the photo to see one of your most prominent trustees in action! Ever vigilant, Ronald Prestage scopes out the US Senate for you as he completes a surveillance mission for future loaded-Ruger-toting NCSU visitors to the nation’s capitol. Can you get away with it? Apparently, no. Trustee Prestage has also teased out, as a kind of bonus, the information that you need a permit to carry a gun.

Because UD feels that this martyr to the cause of bringing “a magazine with six rounds of ammunition and one round in the chamber” to the very heart of the American government will have much of value to say to the press, she will follow his story closely. For now, this is all you need to know: Prestage is Pretrial.

Speaking Truth to Power.

From Alabama State University trustee Elton Dean’s resignation letter to the governor:

I am a graduate of this great institution and you will not find anyone who loves these hollow grounds more than Elton N. Dean, Sr.

The World of Swine Takes Note of…

… one of its own.

Marching a loaded Ruger right up to the security police at the Cannon Building. The police are on extra alert because only a few days ago another asshole did the same thing.

‘Course he dint have no pistol license on him neither. Hyuk.

And they say pigs are smart.

*****************************

Oh, and he’s a North Carolina State University trustee! Just the sort of clever boots you want setting policy at a university. He’ll get right back to work on that. As soon as he can get out of jail.

Wow.

UD is an old hand at university scandals, and Alabama State University is one of the most scandalous universities in the world; so she certainly doesn’t expect to be shocked – WOW shocked – by anything its pathetic conflicted threatened with loss of accreditation board of trustees does.

But UD has to hand it to this school. It has truly astounded her. The two most-conflicted trustees (chair and vice-chair of the board!) have been asked to resign by the governor, “who serves as president of the ASU board by virtue of his elected office.” And why? The governor, like other governors, has tolerated this grossly corrupt institution forever. How do you go too far for the sixth most corrupt state in the union?

Well, you do this:

[The governor] learn[ed] that proposed amendments to ASU’s bylaws had been circulated to members of ASU’s board “excluding me as president and a member of the board.”

[T]he amendments would have done the following in an apparent attempt to grab power from [just-appointed ASU president Gwendolyn] Boyd:

Establish an attorney-client privileges between the university’s general counsel and the board, replacing that between the university and its president,
Provide for the hire of the general counsel by the board of trustees,
Allow removal of trustees only for criminal acts [and not just little bitty ol’ conflicts of interest, get it?] by a majority of the members of the board of trustees rather than a majority present at the time of the vote,
Install a board liaison with the same powers as those designated to the university president,
Prohibit trustees from disclosing confidential information, and
Allow a committee chair to direct the actions of the president.

Shut ma mouth. There’s something almost impressive about people anticipating both their own conflictual/criminal acts and the way they’re going to get away with those acts…

But what truly amazes me (if I may, at this remarkable moment in the history of my blogging about universities, speak in the first-person) is how flagrant these guys are. I mean, just put it out there… Don’t tell the governor; write it so you take power from the president; protect your ass in advance of further self-enriching conflicts of interest…

This school makes Yeshiva University look well-behaved. This school is afuckingmazing.

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