Ball State says feds asked for quiet about fraud

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A top Ball State University administrator said the school kept quiet for more than two years about an $8 million securities fraud at the request of federal law enforcement authorities.

University treasurer Randy Howard said the school first learned about the troubled investment in 2011 and reported it to investigators. The investor involved was sentenced last week to four years in prison on federal wire fraud charges.

Howard told The Star Press that investor Seth Beoku Betts worked with a single Ball State employee who mischaracterized to her supervisors the 2008 investment in collateralized mortgage obligations. That employee was fired in 2008.

Indiana University law professor Antony Page said the case shows Ball State didn't have adequate internal controls over investment decisions.

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