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.”
Rutledge Young, an attorney for Charleston Southern University, said the school was cash-strapped and that lawsuits could lead to costly, expensive and “outcome unpredictable” litigation.
Young said that while a settlement would be “a good business plan in order to get the costs, expenses, legal fees, and calls on the time and talents of people who should be educating students rather than sitting in depositions and courtrooms” under control, the university was ready to defend any claims.
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 investors out of more than $90 million. The university lost $8.4 million in investments with Parish.
U.S. District Judge David Norton was expected to take a few weeks before ruling on the agreement.