Dive Brief:
- Former Florida State University professor James Doran was found guilty of embezzlement for accusations stemming from 2010 and 2011, when he served as the faculty advisor for a student investment project.
- WCTV reports that federal prosecutors say Doran embezzled $650,000 from the College of Business “Student Investment Fund,” which was set up to give students a chance to learn about investing using real money.
- Doran allegedly transferred money from the student account into his own personal account, and he faces up to 10 years in prison.
Dive Insight:
Higher education ranked fifth in frequency of fraud in a study of 23 organization types by the Association of Certified Fraud Examiners. While campus culture is often one of trusting collegiality, experts recommend administrators take a page from the corporate playbook and invest in transactional analysis software, as well as set up internal financial controls. These can include surprise audits and secure software. Campuses undertaking anti-fraud efforts should make them highly visible among employees so the background work can serve as a deterrent. Thorough investigations of reports of fraud also work to reduce the likelihood of future attempts.