“Yeshiva University failed to act on multiple allegations of sexual abuse made by students until 2001, a report by a law firm hired by the institution said Monday. But the report is skimpy on details because Yeshiva honchos directed the firm to publicize its finding only in summary form.”

The report says the investigative team planned to make public its complete findings on sexual and physical abuse but was directed by a special committee of the Yeshiva board of trustees, “as a result of the pending litigation,” to describe the findings “in summary fashion.”

This direction, as the Yeshiva student newspaper points out, “[casts] doubt on the true independence of the investigation.”

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

UD decided to pay a visit to those honchos, with their impressive legal delicacy. What manner of man (they’ve recently put some token females on the board), now that it’s lost Bernard Madoff and Ezra Merkin, sits on Yeshiva University’s board of trustees?

UD decided to choose one name on the list and find out all about him. She chose an unusual name because she wanted to be sure she was getting the right guy. She chose Zygmunt Wilf. How many Zygi Wilfs can there be out there?

Here’s the latest, as of August 5, 2013, on Zygi:

[New Jersey Judge Deanne] Wilson found that Zygmunt Wilf, along with his brother, Mark, and their cousin, Leonard, committed fraud, breach of contract and breach of fiduciary duty and also violated the state’s civil racketeering statute, or RICO…. Discussing the Wilfs’ misdeeds, Wilson said they failed to meet the “barest minimum” of their responsibilities as business partners. “I do not believe I have seen one single financial statement that is true and accurate…”

Zygi got an honorary doctorate – for “philanthropic values” – from Yeshiva.

Good to know that as Yeshiva University begins the process of dealing with its faculty’s misdeeds, it will have people like Zygi at the controls.

The University as Tinpot Dictatorship

There aren’t that many of these, and most of them are religious institutions. Yeshiva University has long been the standout, ruling over its students (especially its women) with an iron morality fist (would you expect any less from a school whose behavioral models have included Bernard Madoff, Ezra Merkin, Ira Rennert, and Zygi Wilf?). In 2011, when a woman student published a sex survey, she immediately lost her housing scholarship. Around the same time, another woman student published a short story with mild sexual content in a campus publication. The paper was shut down. AND sex filters were imposed on all male students’ computers. Not females’ of course! Because females don’t read… or, uh… write about sex.

And there’s the curiously named Liberty University, whose duce has generated lots of news copy lately. UD thinks The Onion captures the situation there best.

The other source of tinpottery is the southern jock school whose Dear Leader knows when you are sleeping. He knows when you’re awake. He knows when you’ve been bad or good, so be good for goodness’ sake! U Alabam’s Shahanshah Nick Saban has been in a snit because his subjects don’t go to the blowout football games (they’re always like 70 – 0) he puts on for their entertainment, or if they go they get bored and leave early… and then you know, out in tvland, viewers all over the country see them empty seats and Saban’s embarrassed etc. So the school now tracks its students’ movements:

Alabama is taking an extraordinary, Orwellian step: using location-tracking technology from students’ phones to see who skips out and who stays.

You better not be in the fucking library when you’ve been told to sit on a bleacher in 100 degree heat for hours of grinding nothingness!

But just as in other Orwellian regimes the population rebels, so in ‘Bama, the frat boys have been identified as the avant-garde of the resistance:

[It will] not be long before pledges are conscripted to hold caches of phones until the fourth quarter so their fraternity brothers [can] leave early.

Plenty of precedent for this, mes petites. Remember clickers?

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

UD thanks Dave.

‘[MIT’s] chumminess [with Epstein] suggests a deeper and more intractable moral rot in American academia: It shows that when a billionaire (or, in Epstein’s case, a faux billionaire) comes calling, men in the ivory tower can’t resist lowering their golden locks to let the plutocrat climb aboard.’

Certain universities – Louisville, USC, Yeshiva, the University of Miami – have the smell of more or less criminal enterprises. They’re always generating high-level, multifaceted, scandal; some of their trustees are crooked or even criminal financiers. Yeshiva had Bernard Madoff as treasurer; Ezra Merkin also sat on their board. Also, I believe, Ira Rennert. The school continues to have as a trustee Zygmunt Wilf. These are not pretty people.

Now, Harvard and MIT were indeed buddies with Jeffrey Epstein; Harvard even celebrates as an emeritus professor Alan Dershowitz, at least an Epstein intimate, and at most (according to one of Epstein’s slaves) a secret sharer in the sex. Its erstwhile president, who helped run a hedge fund while president, hung out with Epstein too. (He also hung out with Andrei Shleifer…) But these schools are not the rackety dives those other schools are. They’re not just in it for the money. Nor are they just in it for the sports: The heavy campus hand of plutocrat college sports fans (the recently departed T. Boone Pickens at Oklahoma State; Phil Knight at Oregon) generates scandals, too – but these are the tired, expected scandals of the jock school.

No, MIT and Harvard are great schools, serious schools, productive schools – they are among the world’s greatest intellectual institutions. They fuck with plutocrats because of their professors’ smokin’ ambition to understand, to invent, to cure. They want money, money, and more money to fund their projects. To be sure, some of this generative creative activity makes some of their professors personally wealthy — the ex-head of MIT’s Media Lab took money from Epstein for his own investments, which adds to the embarrassment of it all… More commonly, professors monetize their medical and technical breakthroughs, producing all kinds of conflict of interest trouble at cutting edge places like Stanford…

We little people, looking in at all of this from the outside, are assured that COIs can be “managed” – the word is always managed – and we shouldn’t worry our pretty little heads. Yessir!

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

Now look. Most people are pretty greedy; many putrid plutocrats realize that a university affiliation can clean them up real good. It’s a marriage made in heaven. But here’s what UD finds remarkable: MIT’s endowment is close to 17 billion; Harvard’s is close to forty billion. In ten years or so, Harvard’s wealth will be, say, a hundred billion. Harvard is a superplutocrat.

These schools are currently in trouble for promiscuous plutocrat fraternization; but given how INSANELY – not to say unconscionably – rich they are, why is this sort of thing happening at all? Just make an appointment with the “super-secret and dictatorial Harvard Corporation” and explain to them that you’d rather dip into the school’s billions and billions and billions than have to take research money from a guy in jail for sexually enslaving fifteen year olds. The worst they can say is no!

And while we’re at it – Why do superbillionaires like Harvard feel compelled to appoint rich turds like Epstein visiting fellows? We know that legacy parents can pay their kids’ way into Harvard; we know that rich parents can bribe coaches to get their kids into schools like Harvard and Yale. I’m not sure we knew that profit-oriented Harvard faculty can gift generous rich guys official appointments. Not a good look. Not a good look at all. But when Larry Summers spends his presidency running a hedge fund, losing $1.8 billion of Harvard’s endowment on market gambles, and defending a faculty crony who misused, for personal gain, government funds to Harvard, whadaya expect? That crony cost Harvard tens of millions in federal penalties, and it made not one bit of difference in terms of his high-profile position in Harvard’s economics department. That’s the way plutocracies work, kiddies. Plutocracies are even smart enough to know when their workings have become too public, which is why right after Larry Summers, Harvard appointed preachy anti-materialist Drew Faust (‘And while you’re at it, find me a woman, for crap sake!”) to maintain the non-profit theatrics.

Skeptical of the clean-up crew function of women when plutocrat sausage parties get out of hand? Read and learn. As FIFA went, so went Harvard – when things get truly desperate and you can’t hide what you’ve been doing any longer, Find A Woman, Pronto. You can always go right back to men when it all blows over.

***********

As ever, sing it.

[Before and after his conviction in 2008, Epstein was a regular on the masturbatory tech gadfly circuit — an attendee and sponsor of “billionaire dinners” and related sausage-factory soirees at which ultrawealthy men (among them the founders of Amazon and Google), elite scientists and various other male luminaries discussed the future they were collectively trying to build (or, depending on your perspective, squander.)]

***********

The party’s over

It’s time to find us a dame

Until we start up again

I’m going to miss our game

It’s time to wind up

The masquerade

There’s no more Epstein

To keep us paid…

And I’m sure Vanderbilt University’s not the only one.

Vanderbilt’s immune system worked: Scammers were unable to find anyone to bribe in order to admit the rancid rich.

Fact is, not all American universities are criminal in this way. Yale and University of Southern California certainly are: Both seem to offer multiple avenues of corrupt access. But there are other Vanderbilts out there, schools that avoid, among other things, hiring greedy shits to coach their students. (Along those lines: Did the University of Rhode Island not know why its new tennis coach was fired at Georgetown? How could they have hired the dude?) As this big-time story evolves, I think we’ll see more and more universities touting their … well, their legitimacy.

For the record: The more you monetize these non-profit settings – the more you look like, say, Yeshiva University, which spawned Madoff, Merkin, Rennert, and Wilf, the more bad actors you’re incubating across the entire system. People get the message, people! Look at the University of Louisville with its high-profile, highly-paid, low-lifes, from athletics to the office of the presidency. What do you think other people at the university, pondering this cast of characters, are going to conclude?

In literature, Scrooge alters at the end of life.

We prefer – we even assume – this trajectory, in which human character is not utterly set at birth, but expands toward some form of realization and even – given a strikingly bad set of character traits – conversion over time.

The story of one of this blog’s minor, persistent, characters – Yeshiva University benefactor Ira Rennert – represents an all too human reminder of the difference between literature and life. For as this multi-billionaire enters his 83rd year of life, as he winds down his tale, he simply persists in his awfulness.

And this is interesting. UD finds it interesting to contemplate such a man, with his Long Island residence so notorious that, when he was on trial for looting the retirement fund of one of his businesses (he was found guilty), his lawyer begged the judge not to allow the jurors to see photographs of it because it would “inflame” them; a man, who having been made to repay the retirement funds, is now suing his lawyers for that amount.

Whenever America’s obscenely rich behave obscenely, there you will find Rennert — flying his private helicopter illegally; polluting the world’s environment; cheating on his taxes, bankrolling illegal settlements.

Like Bernard Madoff’s right-hand man, Ezra Merkin, Ira Rennert is a very high-profile pious person. His name ornaments a business institute for Orthodox Jewish entrepreneurs; he was until recently head of New York’s most prominent synagogue. Ezra Merkin’s synagogue. All three men (along with comrade in whatever Zygi Wilf, after whom a Yeshiva campus is named) were/are majorly involved with/major donors to the extremely curiously run Yeshiva University.

But that, of course, is literary: religious hypocrisy.

Madoff Redux…

… with the same extensive ties to Yeshiva University.

Today’s highest-profile arrestee, Mark Nordlicht, even shares Madoff’s biography. Both had fathers who were financial crooks. Both were deeply involved with Yeshiva University, as were many of their associates. And of course both ran/allegedly ran virtually identical Ponzi schemes.

UD is certain that if the Lord had granted Nordlicht the length of time he granted Madoff, Nordlicht would, like Bernie, have been able to do fifty rather than a measly one billion dollars worth of business.

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

A brief review of the latest batch of YU-affiliated miscreants.

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

“We have to start to become embarrassed by this. There has to be a huge re-set in the Orthodox community.”

Start here: Your most public institution – Yeshiva University – is an increasingly criminalized location. Admit this and start cleaning it up. Remove Wilf’s name from the campus. Remove Rennert’s name from the campus. Strip of their degrees YU graduates who go to jail for massive financial crimes. And don’t strip quietly. Make a public statement repudiating them.

Find a president who doesn’t hide your affiliation with Bernard Madoff and Ezra Merkin, but who owns up to it and says that you’re now ashamed of it, and ashamed of the greed that made you decide to make those men campus heroes.

Admit that it’s time your university stopped making the news for all the wrong reasons. Admit that your hypocrisy – a pious Orthodox face hiding a cynical self-serving face – has done terrible damage to the school and has somehow got to end.

Subject all of your trustees to financial review by outsiders, with an eye toward conflict of interest and fraud. Then get rid of most of your trustees.

That’s what a huge re-set looks like. At least the beginning of one.

From Bernie Madoff on Down, Universities Need the Benevolence of Nasty Billionaires…

…just as nasty billionaires, in a beautiful synergy, need the, uh, colonic properties of universities.

Bernie and his comrade in trade Ezra Merkin were madly generous, madly esteemed trustees of Yeshiva University. That pious institution made them look pure as the driven snow, preoccupied with things of the mind, things of the spirit; and Bernie and Ezra for obvious reasons valued this look highly.

Yeshiva continues to confer sweetness and light upon the likes of Ira Rennert and Zygi Wilf; and in this it resembles many other American universities, whose buildings and scholarships and professorships bear some seriously nasty names.

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

Here’s one. Much-esteemed University of Pennsylvania benefactor Howard Marks is an investor who writes judicious memos about how “markets make mistakes and the greatest market mistakes are driven by emotion – [like] too much greed…”

Marks himself owns but has never lived in a 22,000-square-foot Manhattan apartment which among many other things contains “30 rooms, six terraces, two dozen closets, two chefs kitchens, [and] two libraries.” It sits there on Park Avenue, completely empty, year after year. Like the California venture capitalist who got hold of a long-public beach only in order to post armed guards there to keep anyone from using it, Howard Marks has been driven by some emotion or other to dispense $52 million in order to spend years and years loudly, daily, breaking down the walls of two floors of dead space.

His downstairs neighbors have had enough and are suing. They point out that he’s been breaking building construction rules involving noise levels and hours of work per day for years, and ignoring their pleas that he stop. He has made their lives hell. Not only does he not give a shit; his lawyers are fighting the neighbors tooth and nail.

U Penn gets all excited and writes of Marks as if he’s a god because he gives a few hundred thousand to some of their writing programs, while their benefactor directs his real money to this twisted nihilistic project characterized by vacancy, aggression, and stunning waste.

Paul Berger, a Writer for The Forward, has been able to make a career out of following…

… the amazing greed, hypocrisy and incompetence of Yeshiva University’s president, Richard Joel. The financial and moral ruination of that university at his and his friends’ hands (these include the current board of trustees and some former trustees, like Bernard Madoff and Ezra Merkin), its reduction to a Moody’s basket case, represents one of the most stunning university stories of the decade. Berger has been right on top of it throughout.

This is a university that has named one of its campuses after the Wilfs. Its Entrepreneurial Institute bears the storied name of Ira Rennert.

The latest dispatch from Berger captures two out of three Joel attributes: greed and hypocrisy.

As his college’s finances continued to crumble last year, Yeshiva University’s president, Richard Joel publicly took a pay cut. Then months later, he privately pocketed a deferred compensation payment of $1.6 million.

That payout took Joel’s total compensation for 2014 to $2.8 million, among the highest packages for college presidents nationwide.

… In the year that Joel received the $1.6 million payment, Y.U. ran an operating deficit of $150 million, according to recently released tax records.

That same year, Y.U.’s endowment fell by $90 million, the school was forced to sell $72.5 million in real estate, and Y.U. entered into negotiations to spin off its prestigious but money-losing medical school, the Albert Einstein College of Medicine.

The investor ratings service Moody’s demoted Y.U.’s debt rating to junk status in January 2014 and it has not been raised since.

When you think of the various sorts of noise students and faculty are making at universities across America lately, it’s staggering to consider the almost-total silence at Yeshiva, where people who care about things like spirituality, ethics, and the value of serious study have allowed themselves to be ruled by cynical hedgies for years and years. UD feels confident Yeshiva’s next president (Joel retires soon, with full honors) will maintain its legacy of robbing the school’s mouse-like professors and students.

“After Mr. Rennert defended his actions concerning his estate, his attorneys immediately demanded that photos of it not be shown, arguing that doing so would inflame the jury.”

The man whose name emblazons Yeshiva University’s Rennert Entrepreneurial Institute (plus there are several Yeshiva business school professors walking around with his name on their title) once again shows students at that junk bond campus how it’s done: Entrepreneurship is about finding yourself in a courtroom, accused of looting one of your firms to pay for a private residence so ostentatiously vile that a judge agrees to keep jurors from seeing it lest they become “inflamed” against the accused.

Madoff, Merkin, Wilf, and Rennert: Just a handful of Yeshiva’s remarkable cadre of entrepreneurs.

“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.

Toting up the sleaze, toting up the sleaze, we will die exhausted toting up the sleaze…

… as the great old hymn has it; and when it comes to tracing the glorious careers of America’s highest-profile university students – like the University of Oklahoma’s Adrian Peterson – the toting can get complicated.

Because once these lionized grads (well, not grads; almost all of them, like Peterson, leave school before graduating) hit the professional leagues, they run into people like Yeshiva University trustee and Vikings owner Zygi Wilf, and that’s where the subtle and complex synergy that is the NFL gets going:

“[Wilf himself, who allowed Peterson to stay on the team until public pressure forced him to cut him,] was just found] guilty of fraud, breach of fiduciary duty, breach of contract, rackeetering[,] and this is the man who made the decision with all of this [domestic violence] on Adrian Peterson’s record to bring back his running back.”

So Yeshiva University’s finest meets Oklahoma’s finest and sparks fly for the Vikings! Racketeer plus accused serial child beater equals the best Monday Night Football money can buy!

There. That math wasn’t so hard after all.

“The consequences of the Board’s apparent inattention may very well prove to be catastrophic to this distinguished educational institution, and the questions raised may need to be answered by an independent investigation, perhaps by the NYS Attorney General.”

Six years ago, a concerned Yeshiva University alum, Andrew Sole, wrote a letter to the president of that school calling for the resignation of the entire board of trustees, a scandalous, conflict-of-interest-ridden, Madoff-and-Merkin-led, lot.

Yeshiva’s answer to Sole (which came not, of course, from the president, who is far too busy and important to have bothered with such a triviality, but from some underling… or maybe the response was machine-generated…), Sole told a newspaper, was “scripted,” and “beyond offensive.”

And so it remains today, with Yeshiva the object of renewed contempt as stunning details of its take-down of itself via a combination of risky investments and the Madoff/Merkin tag team emerge. Sole once again calls attention to the fundamental negligence… perhaps amounting to criminality?… of the people who have now succeeded in running the school entirely into the ground (Moody’s has rated it junk); and, incredibly, true to form, Yeshiva has tried not responding at all to him, and then, under pressure from growing media attention, has denied everything. Everything’s peachy at Yeshiva! Plus the extensive report on its shameful activities is all “half-truths and inaccuracies.” Such as?

Yeshiva isn’t saying.

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

Yeshiva has had to sell off some of its valuable Manhattan real estate, is trying to pare faculty by encouraging retirements, and has given up control of its Albert Einstein College of Medicine to save money. Yet it’s still at risk of running out of cash next year, Moody’s reported.

Getting rid of everyone but beloved Yeshiva trustee Zygi Wilf!

Straus Waltzes.

A trustee subpoenaing his university’s students is kind of bad form; it kind of undermines the whole “university family” meme of which publicists are fond.

Of course we know a university is not a family, strictly speaking; but on the other hand there’s this idea that a university is a community, there’s a certain united feeling and history and commitment there… And that, as in families, certain things aren’t done. It’s a news story when children sue their parents; and it’s totally a news story when, angered by students calling for an investigation of a trustee’s rumored unfair labor practices, the trustee subpoenas their emails, journals, shopping lists…

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

There are eight million stories in the Naked City, as they say, and the Daniel Straus saga is only one of them; but in its small way – in a way that interests University Diaries – it’s paradigmatic. Now that Straus is, uh, off the NYU law school board of trustees, it’s worth reviewing the plot elements.

The intriguing problem in regard to choosing trustees is the following:

You’re after the most staggeringly bohemoth moneybag in the world. You’re after the Mothra of money.

Some of America’s most wealthy have acccumulated their wealth in morally and legally questionable ways.

Some of these same people have rather aggressive and even imperious personalities. They were already that way when somewhat unscrupulously, perhaps, accumulating their wealth. Now that everyone treats them like Louis Seizième (pre-guillotine) they are far worse.

If you’re this kind of guy (Platonic ideal: Donald Trump) you customarily sue the shit out of anyone who dares to get in your way, and lookee here. Now it’s two of your charges, two of the law students whose welfare you’ve agreed to oversee, and they’re making noise in various ways about your labor law violations. They seem to think you’re a little soiled to be a trustee.

Unfortunately for you, you are not a Yeshiva University trustee, where being Zygmunt Wilf is not a problem. You do your subpoena, and NYU immediately decides to represent – at no cost – the students. So now you’re in the awkward position of being at very serious odds not just with the students whose welfare you oversee, but with the university that appointed you.

Something’s got to give, and that’s you.

NYU gets bad publicity; you get ridiculed (‘Mr. Straus’s lawyers accuse the union of conspiring with students to “embarrass,” “shame” and “publicly denigrate” him. You might argue that Mr. Straus has done a good job of this on his own.’).

So to repeat: The problem with recruiting trustees (people pay much more attention to the problem with recruiting the best football players, but I’d argue that they’re equally interesting problems) is that… Well, let me quote Fran Lebowitz (UD interviewed her not long ago): “You don’t earn a billion dollars. You steal it.” This is not always an accurate statement, but you get the idea. You can’t be too careful when choosing trustees.

Deeper into Junk

UD has followed benighted Yeshiva University closely on this blog, since the school embodies many of the wrong things you can do with a university. Yeshiva’s downfall (literally – Moody’s just lowered its rating yet again, to an abysmal B3) has mainly to do with corrupt trustees – a motley, incestuous (in terms of investing the school’s money in one another’s funds) crew until recently dominated by none other than Bernard Madoff and his partner in you-know-what Ezra Merkin… But even with one of them in jail and the other busy fielding twelve trillion lawsuits against himself, there’s still Zigi Wilf (“The bad faith and evil motive were demonstrated in the testimony of Zygi Wilf himself,” [the judge ruling against Wilf in a recent fraud case commented.] and a whole bunch of his buddies… Yeshiva is the ultimate example of what UD characterizes as the provincial, good fellas university, brought low by long-established oblivious dumb insidery ways. At the very least Yeshiva needs to dump its overpaid and useless president. But there’s no talking to Yeshiva. It’s just going to tank.

Yeshiva University’s bonds are the most traded in the $3.7 trillion U.S. municipal market today after Moody’s Investors Service lowered the New York City school deeper into junk status.

At least $41 million of fixed-rate Yeshiva debt traded as of 11:30 a.m. in New York, the most of any issuer, data compiled by Bloomberg show. Tax-exempt bonds due in July 2034 traded at an average price of 93.4 cents on the dollar, up from 92.3 cents when they last traded Feb. 24. The exchange of at least $25 million for that maturity is unprecedented since the revenue-backed securities were issued in 2004.

The Uses of the University.

Ex-Yeshiva University trustee Bernie Madoff knew it, and current Yeshiva University trustee Zygi Wilf knows it. Universities are sunny places for shady people. They shed moral legitimacy. When we hear a person’s an officer and a benefactor of universities we get all warm and runny inside. Good man! Hip hip!

Universities also shed intellectual legitimacy. Let’s say you’re peddling a dietary supplement that probably does jack shit. You however wish to claim it cures all human ills so that you can become a billionaire. You need to give someone at a university – or in a governor’s mansion – enough money to get some legitimate studies of the thing going.

Yes, yes, I know what you’re saying. Catch-22. If it’s a legitimate university, the results won’t go your way.

But you’re only saying that because you lack imagination. The point is to smuggle your guys into the university. Look what Novartis did in Japan! Look what Star Scientific – the diet supplement guys – did at Hopkins!

Earlier this year, Star Scientific disclosed a federal investigation of its securities transactions, and several of the company’s shareholders have subsequently filed lawsuits in federal court — and this month in Richmond Circuit Court — alleging that the company misled its investors about scientific research on Anatabloc.

The lawsuits have focused on the company’s statements about research by two scientists who work at the Johns Hopkins University School of Medicine.

The research looked at anatabine’s potential for treating certain types of thyroid disease, but Star Scientific’s stock price took a hit after Johns Hopkins University said the researchers were acting as consultants for the company and not on behalf of the university.

Fine, Catch-23. You might get caught. But a few bad outcomes don’t mean that there aren’t universities just sitting there waiting for you to use them to legitimate your crap. Not all universities are like the University of Virginia which despite the free wheewheewheewhee in a private jet some of its scientists got courtesy of Star Scientific still said no:

According to the indictment, researchers from the University flew by private jet with Virginia’s first lady to a Maryland symposium hosted by Star Scientific in July 2011. It also details a meeting between [the head of Star Scientific] and “senior UVA administrators” in November of that year to discuss UVA “taking the lead role” in seeking state grants to research Star Scientific’s top product. Bob McDonnell allegedly supported the proposal, but the University eventually declined, as evidenced by a string of correspondence months later.

One e-mail included in the indictment has Maureen McDonnell complaining to a staffer: “Gov wants to know why nothing has developed w studies after [Williams] gave $200,000.”

I mean put it together, people! You know you’re gonna get the grants because the governor’s gonna make sure you get them. Win-win! But no – some fuckwits at UVA decide to care about wasting their time and whoring themselves instead of doing actual research. Gawd.

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