Financial Fraud

Charleston, SC: (Feb-5-08) A lawsuit was brought against Charleston Southern University, alleging that it helped Al Parish, a former economist, swindle investors out of tens of millions of dollars. Records show that Parish pleaded guilty in October 2007 and is awaiting sentencing on charges of fraud and lying to investigators. Federal prosecutors stated that the flamboyant economist, who taught economics at Charleston Southern, defrauded hundreds out of more than $90 million. Parish, who was known around town for his flashy spending habits, claimed he had amnesia when authorities announced their investigation in April. A psychiatrist told authorities Parish's condition was stress-induced but also said his memory improved after he learned amnesia was not a defense to his charges.

While the school knew Parish was conducting investment operations from his university office, officials have maintained they knew of no fraudulent activities. Sources close to the case stated that as part of a settlement reached by the parties, Charleston Southern University has agreed to pay nearly $4 million to resolve allegations. Sources claimed that most of the $3.9 million Charleston Southern has agreed to pay is covered under the school's insurance policy, leaving $160,000 to be paid out of cash reserves. [THE STATE: CSU FRAUD]

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Published on Feb-6-08