I Give I Take It Pays!

Florida Atlantic University budget chief Ken Jessell says FAU conducts Internet searches on donors such as Barry Kaye, the self-made millionaire who has donated more than $20 million to the school and for whom FAU's business college is named. A loud hint that FAU may need to begin inquiring a bit more closely came after a Palm Beach Post check with the Florida Department of Financial Services.

That public records request uncovered two past investigations of Mr. Kaye, and FAU was aware of neither. Add new allegations that FAU failed to uncover - Mr. Kaye's company may be involved in defrauding a 73-year-old woman - and the fact that Mr. Jessell says he is not concerned is of some concern.

Mr. Kaye is known by the ads that echo the title of his latest book: You Buy You Die It Pays! His business is part of a new industry. Investors buy life insurance policies of senior citizens in hopes that they will die sooner rather than later. The Post reported last week that after a state investigator wrote in 2004 that Mr. Kaye's publicity was "grandiose" and could "lure unsophisticated consumers" to the free insurance seminars he offers, Mr. Kaye reached settlements with the state on two cases dating to 2002.

The new allegations come amid questions about Mr. Kaye's business symposia held on FAU's campus, replete with newspaper ads designed by FAU and carrying FAU's logo and Web address, and brochures listing him as FAU professor "Dr. Barry Kaye" although he is not an FAU professor and holds no traditional Ph.D. [Background on this here.] Now, a state Office of Insurance Regulation complaint says one woman would have received "substantially" more than $968,832 for her two insurance policies worth $19.4 million had she been dealt with in good faith, in a transaction on which Mr. Kaye's company earned $800,000 in commissions for work regulators could not specify.

Mr. Jessell is serving as interim head of the FAU Foundation, which President Frank Brogan had hoped might finance some of the still unexplained $577,950 severance for the fund-raising arm's former director, Lawrence Davenport. At least some FAU trustees, however, are expressing concern about misuse of the university's name and logo, and urging new naming policies.

Mr. Kaye is leveraging his relationship with FAU. His attitude contrasts with that of FAU's largest donor, the Schmidt family, which made a quiet, yet nationally record-setting donation of $75 million for the Charles E. Schmidt Medical Center on FAU's Boca Raton campus. How long does FAU intend to tolerate Mr. Kaye's behavior?

Subject: To the University Community [Oh hell, SOS can't help sneaking in here... In what way is "To the University Community" a Subject?]

Over the last several weeks, the Palm Beach Post has written several articles and editorials about the University and philanthropist Barry Kaye. The University shared its stance on the newspaper's position through a letter to the editor, which the editorial board members have indicated they will not run as submitted. [Stance... indicated... There's already evidence that we have here what's formally known as a corncob-up-the-ass writer.]


We strongly believe the University family should know our opinion on the issues raised by the news outlet. Below, you will find a copy of the letter we provided to the newspaper. We would like to thank you for your continued support. [Who's we, and what support is he talking about? UD got this letter from a faculty member at FAU who is not at all supportive.]


June 7, 2007

To the Editor:

The primary mission of any university is to serve as a forum where knowledge is imparted to its constituents. [Oy. Why not start pontificating about the primary mission of universities in a letter to a newspaper editor about a shady businessman who's taking advantage of your school...] Great responsibility comes with serving as a vehicle for this knowledge -- universities must strive every day to provide accurate, honest and truthful information. [Gevalt. Whatever word gets you past "pompous" applies here.] A similar responsibility is expected of the press. This is why we can no longer continue to tolerate the clear attempts made in the last several weeks by the Palm Beach Post to malign and damage the reputations of Florida Atlantic University and philanthropist Barry Kaye. [Again, get the "we" business. If I were a student or faculty member at FAU, I wouldn't be too happy with the president's papal approach. I realize this letter has three writers -- see below -- but in the context of the president's beginning this by thanking everyone for their support, it feels as though he's speaking for the FAU community.]


In its latest editorial of June 3, the Palm Beach Post stated its official position on a variety of subjects pertaining to FAU, including a current professional regulatory agency investigation of Barry Kaye's company. In the editorial, the Post calls a question, "How long does FAU intend to tolerate Mr. Kaye's behavior?" The Post is clearly hungry to condemn Barry Kaye, rushing to judgment without allowing due process to take its course in the completion of the regulatory review. The timing of the Post's editorial is particularly upsetting; coming one day after the Sun-Sentinel reported that the investigation of Mr. Kaye may be the result of an error. Is it the Post's contention that FAU should not "tolerate" Mr. Kaye potentially being the victim of a mistake?


By taking this reckless action, the Post is not only damaging the reputation of an institution of higher education that is making great strides in programmatic and research endeavors but is also hurting each and every alumnus whose degree carries the University name and also students working towards their degree. [Inept run-on sentence. Barry needs to fund some ghost writers.] Furthermore, the Post's relentless onslaught against the University has the potential to negatively impact the University's relationships with donors. [To negatively impact. Gag me.]


Like so many of our benefactors, Mr. Kaye is a friend to FAU. It is with his gift of $16 million to the University -- the largest single gift in FAU's history -- that FAU is able to provide some of the best educational opportunities for its students. Kaye's gift establishes a school of finance, insurance and economics; develops an institute of insurance in philanthropy; and extends far beyond our current capacity the ability to hire world class faculty. Kaye has also donated an additional $900,000 to create gathering space for alumni in the alumni center and established an endowment fund in integrative arts education and outreach in the arts and letters college. The philanthropic support of the Kayes also allowed the University to completely renovate its performing arts auditorium lobby.


Barry Kaye's sustained and extraordinary generosity should not be vilified. [Sleazy pseudo-logic. The paper's not vilifying the generosity. It's vilifying evidence of illegality, as well as Barry's pretend doctorate, which degrades the university's name, and in which the university conspires.] It should be emulated. Newspapers that make the community aware of generous university contributions help instill a sense of charity within others and provide the community a service. Vilifying donors does not serve the community. [The rhetoric here - lecturing a free press on how it's compelled to issue good news - is amazing.]


As part of the University's responsibility to its faculty, staff and students, there are a number of tools the University employs [Mr. Jessell's one of them.] to ensure that our friends and donors have the best interest of the University at heart. The University has and will continue to exercise due diligence to ensure our donor gifts remain in the best interests of the University.


We remind the Palm Beach Post editorial board members again of their responsibility to provide for its readers clear, accurate and honest opinions based on fact.


Sincerely,


Frank T. Brogan
President
Florida Atlantic University


Leslie M. Corley
Chairman
Florida Atlantic University Foundation, Inc.


Norman Tripp
Chairman
Florida Atlantic University Board of Trustees