Ball State Bilked in 2nd Scheme for $5 Million

MUNCIE, Ind. (AP) _ Ball State University lost $5 million in an investment fraud scheme in addition to the $8.1 million scheme announced last week.
University Treasurer Randy Howard tells The Star Press the U.S. attorney's office in Manhattan notified the university in 2011 that it was a potential investment fraud victim, prompting the school to conduct a deep review of all of its investment assets.
The U.S. attorney's office discovered the second $5 million investment. Howard would not disclose details of the investment, saying the university was following the recommendation of federal prosecutors “who feel it's in our best interest'' to remain silent during ongoing investigations.
Howard called the bad investments “a combination of mistakes, negligence and criminal actions,'' adding Ball State is working with prosecutors.