Daily News Clips
Office of the Chancellor / Public Affairs
Tuesday, May 20, 2003
 

Daily Bulletin 5-20-03

Complaints filed by 2nd university official
Western accused of improper financial management
By WILL MATTHEWS

 

POMONA — A second administrator has filed complaints of improper financial management by Western University of Health Sciences.

In complaints sent to the state attorney general and the Internal Revenue Service in April, Craig Lenz -- dean of Western's College of Osteopathic Medicine -- alleges improper fund-raising and violations of state law regarding practices of nonprofit organizations.

"I believe that the university has not used funds received from donors in a manner that is consistent with the wishes of the donor," Lenz wrote in his complaints. "Further, I believe that the university has engaged in other financial practices which violate California law."

Lenz did not return phone calls seeking comment, and his lawyer, Irvine-based Russ Thomas, also declined to comment. The Lenz complaint does not make specific allegations or accuse anyone by name.

In a statement released Monday, Mark L. Wallace, Western's executive director of communications, said university officials are investigating Lenz's allegations.

"The university ... has sought to obtain additional information from Dean Lenz concerning the issues raised," the university statement reads. "While the university's investigation is continuing, it is not aware of, nor has it discovered, any evidence of ever having engaged in such practices."

Lenz's complaints were filed less than a month after allegations were raised with the attorney general and the IRS by Sinclair Hugh, then the university's director of human resources.

Hugh alleged in March that Western President Philip Pumerantz and other officials used university funds for personal loans and expenses. He also alleged that Pumerantz has hired members of his family at salaries in excess of market rates.

Sinclair was fired by the university last month. He is suing Western for unfair termination and the university has sued Sinclair for attempting to defraud and defame the university.

Lenz was ordered to appear before the university's Executive Compensation Committee -- the administrative body that ordered Hugh's firing -- May 5.