Board of Trustees


Lawsuit Breakdown: AG vs. Stevens

As extensive and as thorough of a breakdown between the two lawsuits between the Attorney General and Stevens Institute of Technology as you’ll find anywhere courtesy of Professor Wharton as he published earlier, hope he doesn’t mind be re-publishing his stuff here.

I haven’t read both the suits yet but I figure if Wharton has summarized it this well, there is very little chance that I’ll have more to add on it. Read this well and educate yourself.

The sources can be found at the bottom of the post.

Executive Summary

The State of NJ through the Attorney General is charging that Hal and Babbio acted outside of their responsibilities as president and Board members (Babbio being chair and Hal serving on the Board as well). The AG questions the legality of the BoT creating selective, if not secretive committees under the BoT and they’re not complying to inform the full BoT of the financial issues of the college and the compensations and benefits package packages of Hal Reveche. These benefits include an excessive salary for Hal (done under illegal practices, through a special committee and against the college’s bylaws) and low interest loans, car allowances and other benefits. In addition, that the Endowment, scholarships and other funds were misused and misapplied for unrelated finances and that the accounting books were “mismanaged.”

Synopsis:

-That Hal has expansive powers as president and voting member of the Board of Trustees (conflict of interests concerns), but this was due to the BoT agreeing to expand his powers and that he’s served as member of financially related committees for the college and that he exercised further control over subcommittees related to employee related matters, including professors (ah, somewhat unusual for a college prez btw)

-That Babbio as chairman of the BoT allowed under his watch for the BoT and its committees to engage in misconduct, including their failing to inform and disclose to the Board his and the president’s actions. Among these actions included “aggressively” expanding and modifying the college’s research activities, curricula and interfere in student body and faculty concerns. Among these, the Stevens Growth Plan which the president and the chairman “violated” donors and the Board’s spending restrictions. This was, against the “scope” of their powers.

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