3e884de5__Private_Postsecondary_Schools__Explanation
[Institution] St. John’s U. (N.Y.) Chronicle article [Tax year] 2010 [Explanation] 
In 2010, St. John’s University contacted the Queens County District Attorney after an internal university investigation found indications of fraudulent activity by a university employee. As a result of that referral, the District Attorney’s office initiated a criminal investigation that culminated in an indictment of the former employee for alleged embezzlement, falsified credit card statements for non-work related items, and the diversion of funds that were intended to be donated to the University by a foreign charitable foundation. The falsified business expenses amounted to approximately $1 million over the period 2003-2009, and the amount diverted from the foreign charitable foundation as $250,000. It was internal audit procedures that led to an initial discovery of fraud concerns. Thereafter, the university undertook a comprehensive review of all policies and procedures in areas impacted by the loss to any weaknesses in internal controls. The university has implemented certain enhancements to internal controls that are designed to further mitigate the risk of future fraud.
News | California Association of Private Postsecondary Schools
Explanation