October 26, 2012
College in Texas Investigated by the State's Attorney General's Office
Recently, the Texas Attorney General has begun an investigation of how Lon Morris College used a charitable gift given to them by the Long Endowment Fund. The fund provides funds for the college's library, but should the college close its door, the funds will go to Sam Houston State University. According to the will and testament of the founder of endowment, James D. Long, "half of the income was exclusively to purchase books and journals for the Long Morris library and 'to modernize library services and improve student access to library resources.'" However, court documents state the library at Lon Morris borrowed about $1 million, but there is no promissory note to prove that it did.
At this moment, the Attorney General has examined the Former President of Lon Morris College, Dr. Miles McCall. Soon, the Attorney General will examine the auditor of the college, Lynn Acker. This investigation is only the latest problem that the college has had to face in recent times. This past July, the college filed for Chapter 11 Bankruptcy. As I stated earlier, if the college closes the fund will move to fund the library at Sam Houston State University. This could become a reality because Long Morris College had to close its door to the students for the Fall of 2012 when it lost its eligibility to receive federal student aid. Soon, the court scheduled the college to appear in court to ask permission to employ an auctioneer to sell some of its property.
See Kelly Gooch, Lon Morris' $1.3M Gift Investigated by AG Office, TylerPaper.com, Oct. 25, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
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from The Jacksonville Daily Progress, which broke the story:
Posted by: JA | Oct 27, 2012 5:58:06 AM