MUNCIE, Ind. - Ball State University was the victim of another investment fraud scheme in addition to the $8.1 million scheme announced last week, with the second scheme costing the school $5 million.
University Treasurer Randy Howard tells The Star Press the U.S. attorney's office in Manhattan notified the university in 2011 that it was a potential investment fraud victim, prompting the school to conduct a deep review of all of its investment assets.
Seth Beoku Betts, 38, was sentenced to four years in prison on June 5 in U.S. District Court in New York City. He was arrested in June 2013 in North Carolina on a wire fraud charge.
The U.S. attorney's office discovered the second $5 million investment. Howard would not disclose details of the investment, saying the university was following the recommendation of federal prosecutors "who feel it's in our best interest" to remain silent during ongoing investigations.
Howard acknowledged public outcry over the lack of explanation as to how one BSU employee could make $13 million in bad investments. Howard called the bad investments "a combination of mistakes, negligence and criminal actions," adding Ball State is working with prosecutors and others to determine "which individuals fall into those various categories."
Ball State spokeswoman Joan Todd says the $13.1 million loss will not lead to any cuts at the university or to a tuition increase, saying the money came from unrestricted assets.
Rolling Stones fans ready to rock at IMS
The Indianapolis leg of the Rolling Stones Zip Code tour is sure to be a party that die-hard fans wouldn't miss for the world.
1 killed, 1 hurt in east-side shooting
One person was killed and another person was injured in a shooting late Friday on the city's east side.
Star Spangled: Your 2015 fireworks pics
Whether you prefer big fireworks shows or a few simple sparklers in your back yard, we want to see your best Fourth of July pictures.
Pedestrian killed in crash on I-865 in Boone Co.
A pedestrian was killed early Saturday in a crash on Interstate-865 in Boone County.
Richmond Hill resident strikes back at cancer
Richmond Hill resident Glenn Olvey has overcome a lot of struggles since losing his home in the explosion that fateful November night in 2012.