U of L execs under investigation put on leave
The University of Louisville placed two top officials on leave Wednesday - the day after The Courier-Journal reported they were under investigation by the FBI.
In an email Wednesday to colleagues, President James Ramsey announced that Dr. David Dunn, executive vice president for health affairs, and Priscilla Hancock, the university's chief information officer, will be on leave effective immediately.
Citing sources, the CJ reported that U of L police and the FBI are investigating whether they and a former employee, Dr. Russell Bessette, used federal money for non-university purposes.
In his email, Ramsey said authorities advised the university this week that that the investigation had reached a point "where it would not be compromised by the university's talking to several of the principals involved."
Sources: FBI investigating 3 U of L officials
"This is an ongoing investigation, and I ask that we reserve judgment until the investigators have concluded their work," Ramsey said in the email. "I ask each of you to stay focused on doing our very best each day for this great university; our students and our community need that."
Kent Westberry, who represents Dunn, and Christie Moore, who represents Hancock, declined to comment Wednesday. Bessette, who worked under Dunn, told a reporter Tuesday that he had no comment, which was echoed later by his counsel, Scott C. Cox.
Ramsey said in his message, as the university disclosed Tuesday in response to questions from the newspaper, that allegations of potential misconduct were brought to the university's attention in the summer of 2014 and that with the "full support" of the chair and vice chair of the Board of Trustees, the university police department began a review. Other trustees were not notified.
Ramsey said that midway through that review, the university determined it would be "prudent" to seek assistance from the U.S. Attorney’s office and that federal authorities joined the investigation this year.
The FBI and U.S. attorney's office have declined to comment.
Both Dunn and Hancock have been suspended with pay. Dunn is paid $809,024 a year and Hancock $323,925, according to the university. Bessette was paid $323,400 in 2014. He left the university for reasons that U of L has declined to disclose. It also has refused to say if he resigned or was fired.
The investigation is the latest in a series of scandals at the university. U of L also is awaiting the results of an NCAA investigation of allegations that prostitutes were provided to basketball players and recruits. It also was rocked by thefts and embezzlements totaling at least $7.6 million from 2008 to 2014.
Ramsey said in the email that Dr. Gregory Postel, vice dean of clinical affairs, will assume Dunn's duties and that Harlan Sands, senior vice president for finance and administration, will assume day-to-day leadership over information technology operations.
Dunn, 63, and Bessette, 73, were colleagues at State University of New York in Buffalo and have been involved since in a for-profit company called Health DataStream. Hancock worked closely with both of them at U of L and co-wrote a paper with Bessette.
Andrew Wolfson can be reached at (502) 582-7189 or awolfson@courier-journal.com.