A small group of investors is seeking to block a $3.9 million settlement that would shield Charleston Southern University from liability in the fraud case of Al Parish, a former economics professor at the school.
As reported in the April 15 edition of the Charleston Post and Courier, nine of the 600 or so investors in Parish’s “pools” objected to a settlement agreement in which CSU would pay $3.9 million in cash and relinquish claims for up to $1.5 million in any future recovered assets. The university’s insurance company would pay the bulk of the settlement, $3.75 million.
Lawyers for the investors argued that the receiver handling the Parish settlement case did not have the legal authority to settle the case for all investors. They also asked for an opportunity to review CSU’s finances.
David Dantzler, an Atlanta attorney representing the receiver, called the settlement agreement “beautiful” and said the receiver “does not want to be running that university.”
An attorney for CSU, Rutledge Young, said the school could be forced out of business by “outcome-unpredictable” lawsuits.
The university, one of three colleges affiliated with the South Carolina Baptist Convention, has denied knowledge of any illegal activities that Parish conducted through Parish Economics LLC while he was a member of the CSU faculty.
Parish has pleaded guilty to defrauding hundreds of investors out of more than $90 million. The university lost $8.4 million in investments with Parish.
U.S. District Judge David Norton is expected to take a few weeks before ruling on the agreement.
Previous stories:
Charleston Southern University trustees negotiate agreement in Parish case (Feb. 14, 2008)
Charleston Southern University files suit against Parish Economics (April 13, 2007)
CSU board affirms president, makes plans for ‘moving forward’ (April 19, 2007)