LOUISVILLE, Ky. — More information is needed to determine whether the University of Louisville Foundation’s mismanagement — uncovered by a blistering audit – “crossed the line into criminal” activity, Kentucky Attorney General Andy Beshear said Monday.
Beshear told reporters that his office is reviewing the audit to determine whether its findings exposed potential violations of law, and if so, whether his office would have jurisdiction.
The nonprofit foundation serves as UofL’s investment arm. The audit, released last week, scrutinized the foundation’s compensation of UofL administrators, flawed real estate investments and withdrawal of millions of dollars from the endowment meant to support the university.
“The findings are disturbing enough to where we need to carefully review it to see if there is criminal activity,” the Democratic attorney general said.
The AG’s office would have jurisdiction if investigators determined that state dollars were taken or nonprofit rules were violated, Beshear said.
“There are definite findings of gross mismanagement here, which is terrible considering that these are funds that are supposed to support the university,” he said. “What we’ll need is more information to know if that gross mismanagement crossed the line into criminal.”
The audit, conducted by the accounting firm Alvarez & Marsal, did not specify any criminal activity or recommend a referral to prosecutors.
