Updated Friday, May 16, 2008
The Charleston Post and Courier reported May 14 that a federal judge has approved a $3.9 million settlement that shields Charleston Southern University from further liability in the multimillion-dollar fraud case of Al Parish, a former economist and professor at the school.
Charleston Southern UniversityU.S. District Judge David Norton said that if the settlement was not approved, the result would be a “drawn-out, inefficient and chaotic administration of justice,” according to the Post and Courier article.
“The fairness of this solution is clear in light of the alternative,” Norton wrote in his opinion.
J. Rutledge Young Jr., an attorney for Charleston Southern University, said the agreement was a great deal for investors and the school.
“It is critical for CSU to be able to put this issue behind us,” Young said in April.
Nine of approximately 500 investors in Parish’s “informal investment pools” objected to the settlement and could ask the judge to reconsider his decision. They also could appeal the ruling.
In an agreement negotiated with court-appointed receivership attorney David Dantzler filed Feb. 5, the university’s insurance company will pay $3.75 million and the school will pay $160,000.
Charleston Southern also has agreed to waive its claim to $8.4 million, which it had invested with Parish, until other investors recover at least 18 percent of their investment.
Parish, who was fired by Charleston Southern University after fraud charges were filed against him almost a year ago, pleaded guilty in October to two counts of mail fraud and one count of providing false information to the Securities and Exchange Commission. He will be sentenced June 26.
The university has denied that it knew of any illegal activities that Parish conducted through Parish Economics LLC.
Previous stories:
Investors seek to block settlement agreement in Parish fraud case (May 12, 2008)
Charleston Southern University trustees negotiate agreement in Parish case (Feb. 14, 2008)
CSU board affirms president, makes plans for ‘moving forward’ (April 19, 2007)
Charleston Southern University files suit against Parish Economics (April 13, 2007)