Ryan Bromsgrove
Student embezzled $27,000 from Business Students’ Association
BSA points to bank error in embezzlement case
April Hudson
Staff Reporter
Jan 25, 2012
A student embezzled more than $27,000 from a faculty association at the University of Alberta, according to a statement released Monday to Faculty of Business students.
In their statement, the Business Students’ Association (BSA) revealed that $27,745 was stolen from a BSA bank account over the course of the summer, a fact which the association became aware of in August 2011.
When asked, the BSA said they could not comment on the investigation or the identity of the student, but BSA President Kimberley Menard said that the association is working with the Students’ Union to ensure that this does not happen to any other clubs in the future.
“Our internal controls are pretty tight already,” Menard said. “We’re just making sure that if an error is made in the future, we’re able to catch it sooner.”
The BSA statement said the student in question acted alone, although all transactions are supposed to require two authorized signatures. Menard was unable to elaborate on how the student was able to act on their own, although their statement indicated it was due to a bank error.
Students’ Union Vice-President (Academic) Emerson Csorba confirmed that the SU and the BSA have been working together with the Office of the Dean of Students to investigate the issue.
“We’ve been doing a lot of investigating over the last few months, just in terms of looking at the financial procedures of the BSA,” Csorba said.
“The BSA has been handling this well over the last few months, and we’ve been working with the Dean of Students to make sure something like this doesn’t happen again, and at the same time that something like this can’t happen to other faculty organizations.”
According to Csorba, the SU learned about the embezzlement in early December.
“I wouldn’t say that the BSA kept this to themselves,” Csorba said. “When something like this happens, it can be a bit startling just because of the magnitude. But we’ve had a pretty good relationship in terms of working with them — I’d say that (our) relationship is characterized by trust.”
Csorba added that the issue has remained confidential until recently because the student had launched an appeal regarding a Code of Student Behaviour charge.
Although she couldn’t comment on the specifics of the case, Deborah Eerkes, the university’s discipline officer, clarified that in cases of theft or embezzlement, an appeal could be launched once it’s determined that the student violated the Code of Student Behaviour. The appeal board would read over the case and come to a final and binding decision.
“There would be all kinds of things to take into account, like how much was stolen, whether the student was already involved in paying it back,” Eerkes said.
“The range of sanctions (begins with) restitution, but also (includes) things like a conduct probation, or various levels of suspension. Expulsion would be the worst that could happen.”
Elaine Geddes, associate dean for the School of Business’ undergraduate program, stressed that the individuals involved in the investigation are obligated not to provide any information about the student in question.
“People are criticizing the BSA for not identifying this person,” Geddes said, adding that under the Freedom of Information and Protection of Privacy Act, the Code of Student Behaviour, and other university regulations, the BSA is not permitted to do so.
In their official statement, the BSA wrote that the embezzlement was made possible because of a bank error in setting up ATM privileges when the signing authorities were changed for the 2011/2012 year.
“The bank changed provisions on the BSA student account, which was done without the knowledge of the rest of the students,” Geddes explained. “We believe the bank is at fault. Whether or not we’re able to do anything about that is an open question at this stage.”
Geddes added that the BSA has rules in place that should have prevented this from happening.
“What they need to do (now) is provide some way of catching mistakes of this kind before they turn into what this turned into,” Geddes said. “But it should never have happened in the first place, considering the safeguards they already had.”
More than half the stolen money was recovered, but Geddes could not provide a precise amount.
“I have been involved in this from day one, and these students (in the BSA) have done their best to try to properly safeguard the financial resources of students in the School of Business,” Geddes said.
“It’s unfair what they’re being required to go through now, because they have been victims of a crime, and they’re being re-victimized all over again.”
UAPS Director Bill Mowbray confirmed that the student implicated in the embezzlement was charged under the Code of Student Behaviour, and added that the Edmonton Police Service still has a file open for this case.
The EPS officer in charge of reviewing the case was not available for comment as of press time.
Comments
As a business student at the U of A this is a huge embarrassment for all of us. While never being a member of the BSA, nearly all of our student body activities are dealt through them; including our school magazine, Lazy Faire, in which I am a writer. I think what this individual does not realize is this theift makes everyone affiliated with the BSA look suspicious and untrustworthy. I have personally recommended countless BSA events in the magazine not to mention I have trusted them with my own money in selling my books at the BSA Booksale. How can we expect the university at large to respect us as a faculty and not just that “oh those business students, gettin started early on embezzling money”. I can only speak for myself but I find this news sickening and embarrassing as a business student and I hope that we can find a commeasurate means to bring this thief to justice before the school, the students, and the law. Our school has been harmed by this intolerable abuse of trust.
Posted by Matt Crowley on Jan 23, 2012
Not surprising at all. It’s the BSA. Whats new?
The only thing that may come as a surprise is the amount of theft in this situation. The fact that theft occurs among the BSA executive has been an ongoing situation since I started business school.
Posted by Anony Mus on Jan 23, 2012
BSA Constitution 2010: “Expulsion of Members” 9. Members will be expelled from the society upon:
a. A majority vote of all members of the society for any
cause that the society may deem reasonable.
b. Losing his or her status as an undergraduate in the
School of Business. .... How about c. “all of the above”
Posted by Matt Crowley on Jan 23, 2012
I am a business student myself and am heavily involved in many student clubs. I am also an active volunteer on campus. While a single person committed a wrong doing a statement released 5 months later will inflate the issue, here is why
- the issue happened in August, 6 month later we got the news (sounds like British Petroleum)
- while trying to be honest about the issue no sponsor wants to read this all over internet. Chances of sponsorship just decreased by 99%
- because of decreased sponsorship other clubs will be hurt by the funds BSA provides
- furthermore reinforces the negative connotation of business students
- this matter had to be kept inside the business faculty, not the whole planet
- I am angry at the person who stole the money and the lack of consideration when releasing statements like these to world wide web
Posted by Not a Good Move on Jan 23, 2012
He was just doing a homework assignment for one of his business classes. Might as well get them started while they are in University, this way they learn from their mistakes and don’t get caught once they’re in corporate jobs.
Posted by Batman Bin Supaman on Jan 23, 2012
It says that they have known about this since August 2011, you would think that they would’ve let this be known sooner, rather than 1 whole semester later?
Posted by Just a thought on Jan 23, 2012
Setting a good example are we?
Posted by Anon on Jan 23, 2012
They should release the individual’s name and press actual charges against them.
Posted by A business student on Jan 23, 2012
This guy was taking notes on how to be part of the 1% while everyone else was complaining about being a part of the 99%
Sounds like he learned what he needed from business school already so it’s not going to be a big loss to him when he gets escorted off of campus.
Posted by Josh (Alumni) on Jan 23, 2012
Great, after 3 years of hard work in Business and trying to make a difference in the community one student club and one student ruined the positive image the faculty has been working on. I really like the BP example used above, exactly like it
Posted by Enron on Jan 24, 2012
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