You can be sure some people will lose their jobs over this, not to mention jail time.

Seth Slabaugh of the Indy Star reports.

Ball State University writes off $12.6 million from scam

A report released Friday by a former federal prosecutor who investigated the Ball State University investment scandal does not include what everybody wants to know: How did a lone employee, Gale Prizevoits, the former director of cash and investments, invest $13.165 million with two criminals without the knowledge of anyone else at the university?

“There was not a detailed, play-by-play report about what transpired and how these investment frauds were accomplished,” Indiana­polis attorney Rick Hall, chairman of the Ball State board of trustees, told The Star Press Friday, after he and President Paul Ferguson appeared before the State Budget Committee.

“That information was reviewed by (CPA firm) Crowe Horwath and (former U.S. Attorney) Deborah Daniels,” he said, “and we will provide information in that regard to prosecutors, and they will make a decision as to who should be prosecuted.”

Hall told the State Budget Committee, meeting in Richmond, that the university doesn’t expect to recover any more than half a million dollars of the investments made with two perpetrators of securities fraud, one from Bronx, N.Y., and one from Boynton Beach, Fla. Both pleaded guilty to federal charges.

One of the perpetrators actually made a payment of about $100,000 to BSU after being pressured by Prizevoits, and Ball State has recovered another $417,500 from one of its insurance companies.

“We are looking at this point in time at about a $12.6 million loss,” Hall told state lawmakers on the budget committee. “The State Board of Accounts and our internal auditors, based on their assessment of the possibility of future recovery, have told us to value the investments at zero. … it should not be reflected as having any value on our financial statements.”