September 27, 2006
Capital Woes

The local fishwrapper finally noticed that my university is suing its former VP for Resource Management and Director of Facilities as well as a local construction firm.

Specifically, the suit says Aungst handled Capital's purchase of two rental properties at 701 and 707 Sheridan Ave. in February, and paid the owners more than $350,000 over the fair market value of the buildings, plus an illegal broker fee of $50,000....Capital's lawsuit also says Aungst and Fares arranged for Gutknecht Construction to remodel a house owned by Capital for Fares to live in rent free. In [a] letter, Gutknecht vice president Jeff Feinman stated that the company would renovate the house, at 2361 E. Mound St., for $105,000. The lawsuit contends that Fares promised Fredrickson he would pay any cost above $80,000. The lawsuit says Gutknecht charged Capital $306,134 for the work, which Gutknecht never completed. The company also attached a $251,841 lien on the property. Fares and Aungst hid the cost of the renovation by charging some costs to Capital accounts for rental property maintenance and for the construction of a new residence hall, the lawsuit says.

Meanwhile, the former Director of Public Safety is suing us for $4.6 million.

I should've gone to law school...

Posted by Robert Lawson at 09:20 AM in Misc.

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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