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BAHRIA UNIVERSITY (KARACHI CAMPUS)

Midterm Assessment Assignment Spring 2020


Course Title: Business Ethics Course Code: SOC 214
Class: BBA 4A , 4D Course Instructor: Muhammad Mansoor Zakir
Submission: Latest by 31 May 2020 Max Marks: 15
Student’s Name: ____________________ Reg. No: _________

Assignment Guidelines by the Teacher

Read the following case study and answer these questions. Your answer should
reflect your theoretical clarity of the concepts.

Q 1) After being offered the "enticements" by D. Harvey Foster, chairman of the board of trustees,
what do you think was the best course of action for Collins? Indicate how each major ethical theory
might influence Collins ' decision.

Q 2) What stage of Lawrence Kohlberg’s moral reasoning was exhibited by the Tech-3? Explain the
reason for your answer.

3) Evaluate the actions taken by the key players (other than the Tech-3) and determine whether you
agree with them. Indicate which ethical framework you think motivated their actions and the level of
moral reasoning at which you think they made decisions. Provide answer in a table as given below as
a sample

Sr # Person Action Agree with Perceived Kohlberg


action?
Ethical Level of Moral
Yes/No
Framework Development
1 Trustees for Disregarded No Utilitarianism 5
students '
Coastal Tech concerns

 Assignment Submission: Computer Typed


NA0158

Striking at the Queen


Carolyn Conn, St. Edwards University
Aundrea Kay Guess, St. Edwards University

alvin Collins, a freshman at Coastal Technical University, could not believe what

C he just heard over the telephone. 1 The chairman of the university's board of
trustees, D. Harvey Foster, had offered him several "enticements," including a
fully paid study abroad trip, the possibility of an attractive on-campus internship, and
assistance in transferring to another university. In exchange, Collins and his friends, fel-
low students Daniel Morris and Kent Russell, would have to agree to back off from their
public accusations of financial mismanagement at the university and their demands for
President Yvonne Fargo's resignation. Since the students had begun their campaign to
bring attention to what they viewed as serious problems on campus, media attention
had become intense. All three students had been interviewed for news stories on the
major local television stations and in several area newspapers. The media had nick-
named the students the "Tech-3."
Collins had to keep from laughing out loud. "We've got 'em," he thought. Collins
had asked all the questions he and Morris carefully scripted ahead of time, and now he
had a recording of Foster's responses. The telephone conversation had gone on for near-
ly three hours. During that time, Foster had responded to Collins' inquiries about
President Yvonne Fargo and university administrators' pressures on the Tech-3 students.
They had also discussed various allegations the students had made concerning faulty
construction on Tech's $10 million athletic complex, problems with the performance
bond on that building, and the involvement of a former chairman of the board of
trustees on that project.
It was March 3 1, 2007. Collins was eighteen years old, barely out of high school.
When he entered Tech as a freshman in the fall of 2006, he could not have envisioned
even meeting the chairman of the board of trustees. Now he had recorded his conver-
sation with Foster and, he believed, had proof of what he and his friends were certain
were corruption and financial mismanagement of the university. However, Collins
could not help but wonder if he and his friends were in over their h eads. If the record-
ing were turned over to authorities and made public, what would happen? Would the
university and the trustees make it impossible for the students to finish their degrees?
Were they putting their personal safety in danger? Hadn't they already done more than
they were obligated to do? Was it, as Foster suggested, time for the students to back ofP.

Copyright © 20 11 by the Case Research journal and by Carolyn Conn and Aundrea Kay G uess. T his case
was presented at the North American Case Research Annual Meeting, October 30- November 1, 2008,
in Durham, New H ampshire. T he authors wish to thank the guest editor, editor, and associate editor of
the Case Research journal and the anonymous reviewers for their time and valuable suggestions. This case
was written to stimulate class discussion rather than to illustrate the effective or ineffective handling of
the decisions described in the case.

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THETECH-3

Calvin Collins, Daniel Morris, and Kent Russell first met in the fall of 2006 at Tech.
Russell was an active member of the Debate Club and the others attended some of those
meetings. Their friendship and respect for each other developed because of their activi-
ties in the Associated Student Government (ASG).
Calvin Collins was the youngest of the Tech-3. He was originally from Easton, a
small town near the coast, but had moved to Frankston, the community where Tech was
located, in 1997. Collins graduated from high school in May 2006 in a nearby town,
where he had been voted Most Likely to Succeed. At Tech, he majored in public affairs
with plans to go into politics. He strongly considered enrollment at Riverside College
to be near his grandparents, but his godmother had persuaded him he would get a lot
out of attending an historically black college. He deferred to her judgment and chose
Tech. Collins quickly connected with everyone he met during his first semester and was
elected president ofTech's freshman class. Even though he was only eighteen years old,
he worked tirelessly in local politics and was chosen as a precinct chairman for the
Republican Party. His strong work ethic combined with his political interests made him
eager to help Morris with his campaign for ASG President.
Daniel Morris was an ASG senator-at-large and served as chair of the Buildings and
Grounds Committee. Early that fall, Morris began organizing his campaign to run for
the position of ASG President. He was a "non-traditional" student who, at age twenty-
eight, had enrolled at Tech after being honorably discharged from the Air Force. He was
a native of Pine Forest (a city of 65,000 located southwest ofTech) and worked as a pro-
fessional flight instructor at a local airport. He chose Tech because it was the only uni-
versity in the state with a four-year degree in aviation management. Morris had dreams
of a career first as a commercial pilot, and later as an executive in the aeronautics indus-
try. His stint in the Air Force had given Morris a mature perspective on life and a desire
to make things better wherever he could. His personal motto was "honor, pride, disci-
pline." H e did not back down easily from an issue. Morris was self-confident (some
might have said overly so), charismatic, and an inspiring speaker. When he took a stand
on an issue in ASG, Morris frequently quoted his parents, coaches, and band director.
They all had given him a strong conviction to fight for what he believed was right.
Kent Russell was a senior biology major with plans to become a medical doctor. He
had graduated from Bakersville High School in 2003, in a town of less than 7,000
located northwest of Frankston. While he was in high school, Russell attended debate
carnps every summer at an Ivy League school and had made plans to pursue his college
education at one of them. However, Tech had provided him with a full academic schol-
arship funded by both the National Science Foundation and the Frederick Douglass
Institute. He was particularly proud of his membership on the award-winning Tech
debate team. Russell served with Morris as co-chair of the ASG Building and Grounds
Committee and was a member of the Frankston Young Republicans. Russell was
impressed with Collins and Morris because they were both straightforward and spoke
their minds. He saw himself in his new friends. They knew who they were and what they
stood for. Morris and Collins both respected Russell for his intellect and his ability to
think quickly on his feet. Many times they had shown Russell volumes of data right
before an ASG meeting and he recalled all of it and used it effectively in Senate debates.
He seemed to have a photographic memory. While the opposition scrambled to check
their numbers, Russell had already convinced everybody else of the correctness of his
position.

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COASTAL TECHINICAL UNIVERSITY

Coastal Technical University was originally established in rhe early 1900s as a munici-
pal college, the Frankston College for Negroes. It became a state-supported university
in the late 1940s and the name was subsequently changed to Coastal Technical
University. Tech's Fact Book for 2002-2006 included rheir mission statement:
We are a university dedicated to assuring access to higher education for all students, with
a strong commitment to the ethnic diversity of our students. Our faculty put a high pri-
ority on both teaching and mentoring students to assure graduates become active profes-
sionals and community members who will make a difference in our world.

In spring 2007, Tech reported enrollment of nearly 11,000 students, 9,000 of whom
were full-time, with an average age of twenty-five. More than ninety percent of the stu-
dents were African-American. Because of its focus on urban students, in 1975 Tech was
designated by the state legislature as a "special purpose agency."
The university was a comprehensive institution which offered bachelor's, master's,
doctoral, and professional degrees. Tech was located in Frankston's central city on more
than 100 acres, less than three miles from downtown. The facilities included academic
buildings, a music recital hall and theater, museum, health and physical education com-
plex, student center, and dormitories. Several new buildings opened in fiscal year 2004,
including a $10 million athletic complex. The following year rhe $40 million science
building came online.
When Yvonne Fargo accepted the presidency of Tech in 200 1, the university was
beleaguered and under investigation by rhe federal Department of Education (DOE)
for mismanagement of millions of dollars in federal financial aid.
In 1999, the DOE levied one of its stiffest administrative requirements on Coastal
Tech when they were forced to go on a "reimbursement-only" basis for financial aid.
This procedure meant Tech had to be reimbursed by the DOE only after first paying
financial aid to the students. That caused a cash shortage for Tech which was so severe
they could not pay aid to many students who qualified. Stories circulated of students
who had no money for room and board having to sleep in their cars. Tech was on the
edge of insolvency, causing enough concern in rhe statehouse that some legislators
threatened to strip the university of its independent board and place it under the con-
trol of one of the other state higher education systems.
The school's financial woes were not limited to monies received from federal finan-
cial aid. In August 1998, Tech's trustees had asked the State Auditor's Office (SAO) to
perform a financial and operational review. T he results were grim. Major points in rhe
SAO report included:
• There was no proactive leadership or basic control systems in place to avert future
financial crises.
• Systems for assuring fiscal and administrative accountability were non-existent.
• Operating deficits were projected to total nearly $9 million during fiscal year 1999.

YVONNE FARGO

Fargo rose to the president's posltlon quickly. She came to Tech as chair of the
Accounting D epartment in the fall of 1993, and was named dean of rhe School of
Business within a year, a position she held from 1994- 2001. In February 2001 , she was
named interim president and became president in O ctober of the same year. Her initial

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presidential salary was $147,500 annually with an annual $50,000 business expense
account and an annual $48,000 personal housing allowance.
By 2007, Fargo's compensation included an annual salary of nearly $250,000 ar1d
monthly allowances of $1,200 for a car and $4,000 for housing, plus a $50,000 per year
business expense account. She built a $1.2 million personal residence in an exclusive part
of town where she sometimes entertained Tech officials, donors, potential donors, politi-
cians, and other dignitaries. Fargo turned heads on campus, wearing designer suits and
cruising around in her black Corvette convertible. University press releases promoted the
image of Fargo putting Tech on the map and credited her with developing a national
and international reputation for the school.
When she became the tenth president of Tech at the age of fifty-one, Yvonne Fargo
quickly made changes which were promoted by the local press. During her first meet-
ing with faculty members after assuming the presidency she promised to produce an
"academic Renaissance." At public venues both on- and off-campus, Fargo credited her
parents with her respect for higher education and said she wanted to assure other blacks
had the same access to undergraduate and graduate degrees that she had. In Fargo's first
few years as president, enrollment almost doubled. Streamlined processes implemented
under her direction were cited as a significant factor in the university's record enroll-
ment. Fargo also launched a $50 milli.on fundraising campaign and completed several
major construction projects, including a state-of-the-art science building which featured
a federally-funded aerospace research center. Her administration launched a new School
of Public Affairs; a new College of Liberal Arts; and new master's and doctoral programs
in criminal justice, urban planning, and pharmaceutical science. The School of Business
was accredited. Tech's law school expanded, and their graduates attained passage rates
on the bar exam which were higher than students from other public law schools in the
state. Some of the faculty complained about Fargo's flamboyant persona, but many
more thought she was a great public face for the university.
Fargo was a very public figure in Frankston and beyond. She was a guest speaker at
business and professional organizations such as the local chapter of the state's Society of
CPAs. T he university's Fact Book reported she served on the board of directors of the
Federal Reserve Bank of Frankston and the YMCA of the Greater Frankston Area, as
well as the Frankston Independent School District Governing Board. She was featured
at her alma mater for a celebration of the national holiday honoring Dr. Martin Luther
King Jr.
She grew up in a small town on the Atlantic coast, where her father was a deputy
sheriff and her mother was the school nurse. She was divorced with the responsibility of
rearing two young children when she first came to Tech.

TECH'S CONTINUING PROBLEMS

In the early years of her presidency, Fargo seemed to work 24/7 as if she were trying to
fix every problem Tech had all at once. But Tech faced some serious on-going problems,
including an unfavorable report issued in late 2005 by the Office of the Inspector
General (IG) from the state Department of Health. Tech's student newspaper had
reported on the findings, including twenty adverse items related to state monies expended
under a contract with Tech. T he IG found lax internal controls and that the university
"did not provide proper fiscal oversight .. . nor did it provide adequate follow-up to
ensure improprieties ... were remedied." Other problems cited were incomplete or

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missing time records, incomplete or missing agreements with sub-contractors, no sub-
stantiation of travel reimbursements, missing documentation for other expenditures,
altered invoices, and falsified inventory records.
The Tech-3 knew about the construction problems on-campus because they had
seen copies of the published minutes of the 2005 Trustees' meetings, when problems
with the athletic complex had been discussed. Horace Evans, Tech's assistant vice presi-
dent of construction, reported to the Trustees in August of that year that a geo-tech
engineering firm was hired to do borings through the building's completed floor and
concrete slab, into the fill underneath. The borings were done to determine if the build-
ing (which was less than a year old) was designed and built properly. The engineering
firm reported back to the Trustees at their November 2005 meeting:
... not only are there cracks on the terrazzo floor, but they are starting to experience
cracks on the walls in the gym, the natatorium and the exercise room. [Findings from the
geo-tech firm's] report shows that there is moisture in the fill dirt that is cracking the
foundation.
During that meeting, Trustee D. Harvey Foster asked why the university waited
until the floor was completed and cracking to try to identifY the source of the founda-
tion problems. Foster stated he and another trustee, Frank Jones, had walked the build-
ing (shortly after Foster was appointed as a trustee) the previous year and had inquired
about the large visible cracks in the foundation, long before it was covered with tile.
Foster was assured the cracks were "normal." He continued to ask questions about the
foundation at subsequent board meetings.

SAFETY PATROL

The Tech-3 students knew first-hand of serious problems with crime on the Tech cam-
pus. In their positions as cochairs of the ASG Building and Grounds Committee,
Morris and Russell had researched and studied crime statistics for Tech and the sur-
rounding area. Data compiled for most of 2006 revealed Tech had more robberies,
aggravated assaults, and burglaries tha11 either nearby Simms University or Frankston
Community College. The area of Frankston where Tech was located was known for
gang activities. Many students did not feel safe.
Any sense of safety that might have existed at Tech was shattered in the early morn-
ing hours of December 4, 2006, when a freshman student from nearby Brookside,
Bonita Roberts, was murdered. She was caught in a cross-fire in the parking lot of
Larson Lake Apartments, a privatized student housing complex. Bonita died at the
scene from a gunshot wound to the head.
Numerous times, Morris, Russell, and Collins had expressed their concerns through
ASG about the lack of security on campus and missing or inoperable emergency call
boxes. After hearing of Bonita's murder, Morris went to the ASG office and asked
President Tony Briggs what he could do. Briggs suggested Morris form a committee to
do a safety patrol of the campus to identifY areas with inadequate lighting and other
safety concerns. Morris knew Russell and Collins would be eager to help.
On the night of December 6, the three students embarked upon the safety patrol.
T hey noted many areas which needed better lighting and locations for new emergency
call boxes, as well as inoperable ones. The call box locations were identified by a pole-
mounted strobe light above a red box. They were designed to connect students needing

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assistance directly to an officer in Tech's Department of Public Safety (DPS). That night
the students found a sign on one of the emergency call boxes which read:
Attention, these emergency phones are non-functioning at the moment. If you have an
emergency or need immediate assistance, please, call (555) 555-5000 [the number for
Campus Safety.]

It would have been laughable if it had not been such a serious situation. Morris,
Collins, and Russell continued on their safety patrol when Russell pointed out an aban-
doned dump truck parked in an unsecured area near the Physical Plant building.
"I wonder how long they'll leave that rusted-out dump truck so close to the entrance
of the campus. It's an eyesore," Russell said to his friends. "Hey, Daniel, didn't you drive
stuff like this in the Air Force?" Morris stepped up onto the running board of the truck,
grabbing the door handle to balance himself The door opened unexpectedly and reams
of computer paper fell out onto the ground.
Morris reached down and picked up a large stack of the paper. "Look at all this paper
going to waste! We could use this in the computer labs or the library."
One of the issues Morris had been championing in ASG was the students' need for
computer paper; so, all that discarded paper got his attention. Morris asked the others,
"Why can't we just reuse the back of this used paper .. . so students can print out their
rough drafts and save the new paper for term papers and things like that?" Morris
looked more closely at the papers and realized they were recent Tech payroll reports con-
taining personnel information, including employee names, salaries, and social security
numbers, as well as dollar amounts for insurance, retirement, and other deductions.
"Let me see those," Russell said as he picked up a stack of the papers. "Unbelievable!
Here's my name and Social Security number and it shows exactly how much was on my last
pay check from the Admissions Office two weeks ago. This is all supposed to be highly con-
fidential. Even student workers, like me, have it drilled into us during employee training
how careful we have to be with information like this."
The students were certain the records should be turned over to someone at Tech, but
they were not sure to whom. They decided to take all the payroll records back to
Russell's apartment, to keep the confidential data in a safe place while they developed a
plan. Once they were back at Russell's apartment, they made another discovery.
The payroll records showed compensation had been paid to people the students
strongly suspected were not employees or student workers at Tech. Because the three
students knew many people on campus, they were able to identifY several questionable
payments. One name in the current payroll records was someone who was attending
another university out of state, and there was a payment to a library worker who Morris
knew had been gone from campus for several months.
The next morning Morris called Fargo's office and left a message about the students'
urgent need to meet with her about confidential records and associated security issues.
Neither Fargo nor any of her staff responded. T he Tech-3 then contacted the payroll
office and human resources department. They described the records they had found, but
no one there expressed any interest or concern. Later in the day, as they walked across
campus, they happened to encounter two faculty members they knew and trusted. The
students described the payroll records to the faculty members who were dismissive until
Russell said to one of them, 'The records we found show you're having child support
garnished from your paycheck. I thought your only children were the ones you have
here with your current wife."

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The exposure of that accurate and, presumably, confidential information elicited a
quick response from both faculty members. "We'll get you in to see somebody who'll
do something about this!" Morris, Russell, and Collins soon had an appointment with
Wiley Volker, the vice president of business and fiscal affairs. The human resources and
payroll offices, as well as campus police, reported to him. (Refer to Exhibits 1 and 2 for
organization charts.) The three students anticipated he would be alarmed by both the
lack of security for the confidential records and what seemed to be inappropriate pay-
ments to people who were not employees.

MEETINGS WITH THE TECH ADMINISTRATORS

The meeting with Wiley Volker on December 7 did not go as Morris, Russell, and
Collins had expected. He was indeed concerned about the records. However, the stu-
dents felt he was more concerned the students had found the records than with the con-
fidential contents.
Morris, Russell, and Collins left Volker's office disappointed and confused. If the
vice president of business did not intend to do anything about the payroll records, what
should they do next? Maybe they should go to the president, as they had tried to do at
first. "We will go to the president," Morris said. ''I'll call Fargo's office tomorrow."
Later that afternoon a faculty member saw the students on campus together and told
them to go back to see Volker. That raised their suspicions. IfVolker was not interested
in the records that morning, what made him want them back in his office now? Russell
and Collins went to see the vice president of business. The afternoon meeting expand-
ed to a discussion beyond the recently-discovered payroll records. Volker agreed with the
students when they expressed their concerns about campus safety and the millions of
dollars in maintenance and repairs needed on campus. But, he did not think Tech
administrators were responsible for the problems. The students reported that he said:
Coastal Tech University is in the condition it is in . .. because of them white boys and .. .
Republicans in [the legislature]. Hell, I get upset when I think about the biggest univer-
sity in the state having a $20 billion endowment....

Volker asked what the students had done with the payroll records. Fearful that he
might try to destroy the records, the students told him they had been given to the State
Comptroller. Volker seemed displeased and said: "We need to keep this between us."
That comment made Russell and Collins certain they needed to talk with the president
and maybe even the trustees to assure the situation was handled properly.
Early on December 8, Morris did as promised and called for an appointment with
President Fargo. This time, the call was returned. Shortly after noon that day, all three
students went to President Fargo's office. Others at the meeting included Wiley Volker,
Melissa Sanders (Tech's general counsel), DPS Police Chief D avid Washington, and
DPS Officer T. E. Garvey. T h e students described how they found the payroll records
and their two-fold concerns about the lack of security for the confidential data and the
likelihood that people had been paid who were not Tech employees.
At the end of the meeting, the Tech-3 were encouraged when Chief Washington
assigned Officer Garvey to get the payroll records from the students and turn them over
to Albert Warren, assistant vice president of human resources. One of Warren's subordi-
nates was responsible for Tech's records retention and disposal; she was to shred the doc-
uments. Weeks later, the students made an Open Records Request and learned the

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December 8, 2006, police report filed by Garvey stated: "Tech students found an official
Coastal Tech University pay roster in unauthorized location (unsecured)" and noted the
case was "closed."2 The wording in the report was not what the Tech-3 had expected.
How could the case be closed? Tech's police department could not be trusted, they
thought. This made the students more certain they had done the right thing by keeping
copies of the hundreds of pages of payroll records.

TRUSTEES' MEETING

That should have been the end of it, the students felt. Morris, Russell, and Collins had
reported the situation with the payroll records to the university's president and legal
counsel, and a Tech DPS police officer had taken possession of the records. However,
the three students were uncomfortable and not confident the situation would be han-
dled appropriately.
Morris expressed his concerns to his friends:
They're just going to try to sweep this under the rug. They aren't going to do anything
about those payroll records or any other problems on campus. They don't want any more
bad publicity. Weve got to do something!

Russell agreed with Morris, "If you see injustice going on and you sit idly by ... you
might as well be committing the crime yourself" Collins had mixed feelings. Sometimes
Morris could be dramatic. Collins was hurt and concerned about the rebuff from the
Tech administrators. "A university is supposed to teach morals and ethics. Every class
syllabus says students must follow 1ech's Honor Code. What about their honor code?"
Collins asked. "So, what do you think we should do-go to the trustees?"
"Yeah, that's exactly what we should do," Morris replied. "They'll be here in just a
few days for a meeting. We can go tell them about the payroll records and all the other
problems on campus."
D aniel Morris, Kent Russell, and Calvin Collins had never met D. Harvey Foster,
chairman of the board of trustees at Tech, prior to the December 2006 meeting of the
board. The students had submitted a written request to Foster, asking to talk with board
members about their concerns regarding financial and security issues at Tech. The board
allotted them three minutes total face time at the December meeting. The students
described their sincere concern for Tech and their fellow students, and did so with "fire
in their bellies," demanding changes.
Collins was proud of Morris, who was very poised and eloquent in his description
of campus problems. He had expected Russell to be charged-up, and he was. Even
though he was upset over the issues himself, Collins maintained his usual mellow and
soft-spoken approach, inspired by the quote from his hero, Teddy Roosevelt: "Speak
softly and carry a big stick."
Russell told the trustees, "You don't seem to get it. We're talking about payroll
records that anyone could have gotten hold o£ And, campus crime rates are through
the roo£ You've got to do something." The trustees seemed unworried, and told the stu-
dents these were matters for the president and her staf£ Russell fired back, "If you don't
investigate this, we'll just have to go to the media. After the threat of media involve-
ment, Trustee Foster assured the students, "I will personally talk with President Fargo
about your concerns."

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HIGHER UP THE CHAIN
"Well, it happened again. They've blown us off." As they left the trustees' meeting,
Morris was frustrated over what he felt was their dismissive attitude toward the students.
"Turning a blind eye to problems is not the way I was raised. My parents, coaches, and
teachers all said every person must do the right thing." Russell agreed.
Collins was not surprised by the reactions of his two friends. They were both take-
charge, get-it-done types. He, too, was bothered. It certainly was not the way he would
have behaved toward students if he had been a Tech administrator or trustee. The three
agreed they had to go over the heads of the locally controlled board of trustees. "So,
what should we do now? Collins asked.
"We've got to go to the state capitol!" Russell suggested they contact several regula-
tory agencies about all the problems at Tech and the inaction by the administration and
trustees on so many serious issues. He knew some state agencies were responsible for
investigating these kinds of situations; they just had to get to the right agencies.
The students found the State Comptroller's website. They called and asked to talk
with someone about financial mismanagement and other problems at a state agency.
The Comptroller's Office representative told them to call the State Auditor's Office
(SAO) and provided the 800 number for their Fraud Hotline. The students spent more
than thirty minutes on Russell's cell phone, navigating through the many branches of
the SAO's phone menu and waiting on hold. They persisted and finally reached an SAO
employee. The representative did not seem to think the students' claims about the pay-
roll records were believable. They were advised- if they were serious- to file a written
complaint on the SAO website. "Just look for the button that says 'Report Fraud'."
"You would have thought we were trying to report a UFO. Why doesn't anybody
believe us?" Collins wondered out loud. "Now what? How much more are we going to
do? We better think about final exams." Although they were convinced something more
needed to be done about their concerns, the three students agreed they had to concen-
trate on academics. After they were done with the fall semester, they could plan their
next step.

STRIKING AT THE QUEEN

During the break between the fall 2006 and spring 2007 semesters, Collins thought
about what he, Morris, and Ru ·sell had experienced . It seemed surreal. H e called Morris
in late D ecember, "You know whose fault all of this is?" Morris responded, "Yeah, the
trustees. We need to get every one of them off the board. We need to start with a clean
slate of trustees."
"No, you're wrong," said Collins. "It's Fargo. The trustees only get the information
she wants them to have. We've got to get rid of her." Morris told Collins, "You're always
saying I'm crazy. You're the one who's crazy now. T here's no telling what will happen if
we go after the president."
Collins explained his thinking about why Yvonne Fargo was to blame for Tech's
problems. "Let's review the things we know have gone wrong or been ignored since
Fargo became president and how she acts. I made a list .. . and this is just the tip of the
iceberg." C ollins had made the following notes, which he read aloud to Morris:
1. T he new Athletic Complex has so many construction problems it should just be
condemned and bulldozed. Fargo knew there were problems while it was being
constructed, but did nothing.

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2. The Performance Bond on the Athletic Complex is "bogus." The company which
issued it isn't even authorized to sell that kind of insurance.
3. Her hiring practices are unbelievable. She hires former politicians who have maxed
out their term limits even though they're not qualified to work here and th.en pays
them more than qualified people.
4. The fraudulent payroll payments have to be something she knew about-or one
of the people who report to her knew about.
5. Bad publicity is minimized by Fargo and she makes good things sound better than
they really are. She knows how to "spin" bad publicity and to get people on her
side.
6. Open Enrollment is a joke. Fargo will do anything to keep up enrollment numbers,
including the admission of students who can't possibly succeed in college ... even
ones who are criminals. She just wants warm bodies on campus to bring in more
state funding.
7. Physical security of Tech students should be one of her top priorities, but isn't.
Even after the Police Chief told her our campus was "out of control," Fargo did
nothing.
8. Payroll records stored in a rusted-out dump truck? Fargo's got a PhD in account-
ing . . . she knows the right way to handle financial records and how important it
is to protect employee Social Security numbers. Then, she tried to ignore us when
we found those records ... probably hoped we'd just go away.
9. Fargo is a publicity hound. She would rather be rubbing elbows with state and
national politicians than to be here in the trenches managing the university.
10. She keeps the Trustees in the dark. They only meet quarterly and they never have
"open" access for students or employees to have any kind of contact with the
trustees or to air our concerns.
"Slow down . .. you're wearing me out," Morris said to his friend.
"''m not finished yet," Collins replied. "That was just a list of the concerns. Now, let
me tell you why Fargo is the problem. The buck has to stop somewhere ... and, it stops
with her. If she didn't know about all the stuff going on, it says a lot about her lack of
leadership. As a CEO, you have to know what's happening in your company. You must
have checks and balances in place to keep bad stuff from happening."
Collins continued, "Think about it. The president sets the agenda for Tech's trustee
meetings and she leads them around, showing and telling them only what she wants
them to know, talking about things that make her look good ... self-promoting. Fargo's
got the trustees wrapped around her little finger. She and her entourage have an arro-
gance about them ... like they're all untouchable.
"If you hit the biggest person on the playground, everybody else is going to run. Let's
hit the biggest one in the bunch and see what shakes loose. I'm telling you if we go after
Fargo, something is going to shake loose."
Morris was convinced. They called Russell and told him about their new plan.
Morris was running for ASG president and Collins suggested he use the removal of
Fargo as part of his upcoming campaign. The students discussed writing letters to the
governor and distributing letters on campus demanding Fargo's resignation; it would
begin when they returned to school in January.

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LETTER TO THE GOVERNOR

On January 11, 2007, Collins, Morris, and Russell wrote a letter to the state's governor:
Dear Governor Lowman- As student leaders at Coastal Tech University we are deeply
concerned about both the dysfunctional nature of the University administratively, as well
as the inability of students to get a quality education.

The students described their accidental find of the payroll records in December and
the lack of response by Tech administrators and trustees. They also mentioned the gang
rivalries around campus and the student who had been killed.
They described the Board ofTrustees as a "do nothing oversight body. [We] students
exit Coastal Tech ill-prepared to function in the real world." They expressed concern for
the lack of any open sessions with the Trustees during which students and community
members could speak before members of the board.
The letter ended with:
We write this letter to you as Governor so that you can do som ething about the
deplorable state of affairs at Coastal Tech University.

Collins knew their letter to the governor sounded dran1atic and possibly a bit
extreme, but everything they said was true. Two important things he had learned from
his parents were to always tell the truth and to fight for what you believed in. "That way
you can sleep at night." Russell's parents had reared him with similar beliefs. His father
had often told him, "It's never too late to change a situation; you just have to work at
doing it."

REACHING OUT FOR SUPPORT

The following week (on January 19, 2007), Collins sent a letter to all members ofTech's
Associated Student Government (ASG) on his official letterhead as freshman class pres-
ident. T he subject line was: "The removal of Dr. Yvonne Fargo as president of Coastal
Tech University."
Collins solicited the ASG senators' support in calling for removal of Yvonne Fargo
as Tech president. He described the dysfunctional nature of the university administra-
tion and the inability of students to get a quality education. Collins did not include in
his letter specific examples, such as Don Patrick Tyler, former city councilman, being on
Tech's payroll as assistant director of the Cultural Center for more than $70,000 per year
while he was enrolled at Tech as a freshman student. Nor did he include information
about Thomas C. Holder, another former city councilman, hired as a faculty member
and associate dean of students, with an annual salary of more than $1 00,000-without
a PhD (a requirement for faculty members). Even though Collins did not say so in the
letter, those and similar situations were on his mind when he described the university as
being " ... victimized by nepotism and incestuous greed."
The letter also stated: "The administration under Dr. Yvonne Fargo has been
plagued by an enrollment driven education philosophy, rather than a quality driven
one." Collins was incensed over the high failure rate ofTech's freshman students while
the university continued a policy of open enrollment. Tech admitted any student
regardless of their academic abilities, without regard to their potential success or failure.
It seemed like Tech operated with the mindset of "anything goes" as long as it increased
enrollment- which increased state funding. Collins and his friends were alarmed over

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an incident in mid-January in which a Tech student was arrested for armed robbery, yet
was allowed to continue his enrollment at the university.
Collins did not hold his emotions in check when he wrote the letter. He said the
campus was an eyesore and a place for drug dealing. He mentioned the Larson Lake
shooting of Bonita Roberts and quoted the Tech police chief who said the campus was
"out of control." The letter ended with: "This President has not shown the strength or
ability to lead this University and therefore she should be removed.... It is time to erad-
icate that problem." The three students also circulated flyers on campus with the pri-
mary message of their demand for Fargo's resignation.
The response to Collins' letter and the flyers was immediate. Many ASG senators
who they had regarded as friends called Collins, Russell, and Morris traitors to their
race. "Don't be airing our dirty laundry in public," one senator told them. Another was
even more critical, "You're just doing the white man's bidding."
"White man's bidding? Since when has this become a white and black issue?
Everyone's tuition and state dollars are being wasted," was the response of the Tech-3.
"I come from a multi-cultural background," Russell told his friends. "Crime has no
color. Wrong is just wrong." It was clear to the three students President Fargo and her
administration had wasted and misspent millions of dollars. Why couldn't other Tech
students see that?
Russell, Morris, and Collins were not totally without support. Their family mem-
bers respected the Tech-3 for their sense of commitment and duty to Tech and the tax-
payers, even though they did not understand all the financial and political aspects of
what had occurred. There were a few faculty members-primarily those with tenure-
who talked with the Tech-3 privately, and said they were doing the right thing.
And there were the anonymous supporters. Not long after their public call for
Fargo's resignation, the students were anonymously provided with financial information
which showed thousands of dollars in questionable expenditures made by the president
from university accounts. The documents included receipts for procurement card pur-
chases and invoices for what appeared to be personal items for Fargo.

MEETING WITH FARGO

It only took two days after he sent the letter to the ASG senators for Collins to be sum-
moned to the president's office. "You're wanted in the president's office right now," said
a voice on the other end of Collins' cell phone. It was Travis Darnell, associate dean of
students. "The president wants to talk to you."
Collins had just gotten out of Sociology class. He did not believe Darnell was seri-
ous. Collins responded, "Yeah, well, I've got some things to do. I'll see if I can get by
later today." He immediately called Russell and Morris and told them about the call.
"Well, you're not going by yourself to see the president," Morris said. "We'll all go."
Later that afternoon, the Tech-3 went to the president's office.
Yvonne Fargo was incredulous at the students' criticism of her. "What did I do?
Haven't you seen all this money that's coming in, all these buildings, the parking garage?
What is it that you want me to do?"
"Resign and leave," Collins said plainly. He had not planned to say that to her; it just
came out. After it was out, he knew he meant it. H e also knew there was no going back.
After he told Fargo to resign, he calmly rose from his chair and walked out of the pres-
ident's office. The others followed.

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SPECIAL CRISIS REPORT

Russell, Collins, and Morris decided to compile written documentation of their con-
cerns and get that information into the hands of state legislators. They came up with
the idea of producing a book with evidence of Tech's problems in the areas of security,
health and maintenance, mismanagement of state and federal funds, and academic stan-
dards. They used these topics as major sections of the book which ended with a copy of
the January 11 letter to Governor Paul Lowman and the January 19 letter from Collins
to ASG, which called for Fargo's resignation. The cover page of the document identified
it as the Coastal Tech University, Special Crisis Report.
The Tech-3 targeted distribution of the Crisis Report for early February 2007 when
"Tech Ranger Day'' was held in the state capitol. It was a biennial event, similar to those
held for all public universities, when the legislature was in session. Each event gave
administrators from their university an opportunity to talk with legislators and other
government officials in an informal setting.
Russell and Collins delivered a copy of the Crisis Report to state senators' and repre-
sentatives' offices. Collins was in the capitol building with Russell when he looked up
and saw one of the Frankston area state representatives. Collins had served as a volun-
teer on his campaign for mayor. The representative motioned urgently to Collins and
mouthed, "Come here . . . right now." When Collins approached, he was criticized for
the attention he and his friends had brought to Tech and was told, "You're trying to
close the door of education in the face of blacks. Guess you think it's OK for you to get
over the bridge, but now you don't want anyone else crossing over?"
Collins had heard from several sources Fargo had close ties to many state and some
federal politicians. Blogs on the Web reported she was a close personal friend of the gov-
ernor, and the campus "grapevine" said she had often bragged about her backing from
the governor and former U.S. President Kent Harvey. He had read newspaper accounts
that reported former U.S. President Harvey and his wife had hosted a party for Fargo
at their vacation home and that the former president had headed up Tech's $50 million
capital campaign in 2003. Collins had not expected such a strong reaction from state
legislators. Was no one concerned about the state and federal taxpayer dollars, as well as
student tuition, which had been wasted at Tech? Did no one care about the safety of
Tech's students and the quality of their education?
The Tech-3 students were disheartened by the legislative backlash toward them, but
they were not deterred. Russell shared his grandfather's philosophy with his friends,
"You have to do what's right-even if you are standing by yourself"

THE iNTERNAL AUDITOR


When the students returned from the state capital, they thought of one other Tech
administrator to consult about their concerns about financial mismanagement and the
payroll records. T he internal auditor should care about what they had found and all that
had happened to them.
In the spring of 2007, Francis Perkins was Tech's director of internal audit. He was
previously the project manager for the state auditor's financial audit ofTech. That was
in eariy 2001 , when state legislators set an April 1 deadline for Tech to make significant
progress in addressing their financial and administrative problems.

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Cash flow problems, primarily related to financial aid, had prompted Tech officials
to ask the state for $3.5 million in state emergency funds late in 2000. Legislators told
Tech administrators they had to make significant changes to address their problems or
the university would be placed under the governance of an existing state university sys-
tem. The Legislature had set an April 1 deadline. Tech trustees were pleased when
Perkins reported in March 2001, on behalf of the SAO, that he saw a definite commit-
ment from Tech administrators to "do things right." Perkins went on to describe newly
appointed interim president Yvonne Fargo as having:
... worked feverishly to meet short-term goals toward improving operations. They have
given legislators a list of goals they plan to accomplish by April 1 in areas such as student
enrollment, management information systems and finance and accounting.3

Later that year, Perkins accepted the position as Tech's director of internal audit.
On February 21, 2007, Morris and Collins saw Perkins in the hallway near his office.
He listened to what the students said about Tech's financial problems and the lack of
security for and questionable expenditures found in the payroll records. They told
Perkins that he and other Tech administrators were overpaid and the university was being
"looted." Perkins showed his impatience with the Tech-3 students, who had caused
Internal Audit to expend so much eftort on things he felt wasted everybody's time.
Morris stared hard at Perkins a.'1d said, "We're going to get to the bottom of this
fraud and corruption." Perkins shot back, "You boys wouldn't know fraud and corrup-
tion if it bit you in the a**."
The students realized immediately they should not expect any help from Internal
Audit. They also knew they had no formal training in how to maintain the chain of cus-
tody for evidence and other required documentation for audits and investigative activ-
ities. But from their perspective, Perkins seemed to be in a tough spot himself The stu-
dents assumed he had gotten pressure from Fargo, Volker, and possibly some trustees
not to dig too deeply into allegations of financial misdeeds and other problems.

THE PRESSURE BUILDS

Events in the weeks that followed Tech's Ranger Day became a blur. It was hard for the
Tech-3 students to keep up with everything that happened to them and exactly when it
occurred. Shortly after Ranger Day, Russell's father resigned his position as an academic
adviser at Tech. H e refused to yield to his supervisor's demands that he write a letter of
apology to the president for his son's activities. Russell lost his part-time student assis-
tant job in Tech's Admissions Office, a position he had since he was a freshman. The
Admissions Office supervisor said the budget was tight and they needed to cut back. In
late February, Morris sent a letter to several state legislators and pleaded for their inter-
vention on campus. H e enclosed newly-found documentation about a questionable
$ 10,000,000 performance bond for construction of the athletic complex. T he perform-
ance bond had been issued by a company which was not authorized either to provide
insurance services in the state or to write performance bonds in the state where they
were headquartered. The students were hopeful this would be a large "red flag."
Right after his letter went out to the state legislators, Morris was given written
notice by the Dean of Students he was being called before the Student-Faculty
Disciplinary Committee on multiple charges. One charge related to a shouting match
between him and Tony Briggs, his opponent for ASG President, in which Briggs

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accused Morris of stealing his cell phone. It occurred over the telephone when both
students were off-campus. For this incident, Morris was charged with causing "inten-
tional mental or physical harm." The other charge was for allegedly disrupting a
Spanish class and being "insubordinate to a universiry official." Mter the hearings,
Morris was placed on disciplinary probation.
Russell and Collins were also sent notices of their own disciplinary hearings and the
prospect they could be either placed on probation or suspended from the universiry.
Russell was charged with verbally threatening a Tech official because he had reportedly
raised his voice during a meeting with Wiley Volker on the morning of March 2. (The
statement given to DPS by a secretary in the office about the incident said Russell was
not loud or abusive.) That same day he was suspended from Tech and was not allowed
on campus without a police escort. Collins was charged with insubordination, creating
a campus disturbance, and inflicting intentional mental or physical harm and brought
before a disciplinary committee. He was suspended on April 5.
Academic Vice President and Provost Jesse Dalton met with Morris numerous times
and tried to persuade him that the students should stop calling for Fargo's resignation.
Dalton first approached Morris outside the Student Center in early February and told
him, "You know this thing needs to come to an end and you're the one who can make
that happen." In the ensuing weeks, Morris was called to the provost's office and told
the students' activities were not good for the universiry. Mter Morris helped Collins and
Russell distribute Crisis Report, Book 2 (in early March), Dalton's attitude changed.
Then, on March 2, 2007, Collins and Russell were charged by Tech's police depart-
ment with "identiry theft." Charges were filed against them in the Weber Counry
District Attorney's office at 7:20p.m., but the following morning, the district judge dis-
missed the charges as being "without probable cause." The two students heard through
the campus grapevine that charges were being filed against them, so Russell's father
arranged for bail about the same time Tech's DPS Officer Keisha Lowe was headed to
the DA's office to file the charges. Neither student spent the night in jail. The Tech-3
realized the universiry administration would increase their efforts to make them go away.
"ldentiry theft!" Morris was furious. His friends had been charged with a crime they
did not commit. Collins and Russell were booked at the counry jail, fingerprinted, and
walked through the area which housed some of the toughest looking prisoners. Russell
described several of them shouting at him, "Oh, boy, fresh meat. You're bunking with
me tonight!" Even though the students knew they had done nothing wrong, they had
been treated like hardened criminals.
The charges of identiry theft had arisen because of flyers Collins and Russell had dis-
tributed about Don Patrick Tyler's employment at Tech. Numerous faculry members
had told the students how upset they were about former politicians (who were not qual-
ified) being hired to teach at Tech and being paid more than many senior faculry. After
looking in the universiry's published budget, Russell and Collins confirmed one such
situation. They printed and distributed flyers asking why the former Frankston ciry
councilman and mayor pro-tem Tyler (who did not have a college degree) was paid
$75,000 annually by Tech. The flyer showed a copy of Tyler's payroll record which
included his Tech employee identification number (a subset of which was his Social
Security number).
Some fellow students felt Collins and his two friends were enemies of Tech. The
Tech-3's public calls for President Fargo's resignation had cast a bad, bright light on the
universiry. Many students turned against them. The universiry administration forced

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them fiom their positions in ASG. The dean of students' office took action which resulted
in two of the three students being placed on either probation or suspension. The uni-
versity required Tech police escorts for Russell and Morris any time they were on cam-
pus. Russell was prevented from graduating in the semester he had planned, which
would have been at the same time his mother received her master's degree. They would
have walked across the same stage on the same day. Instead, he was escorted to and from
campus by DPS officers for her graduation.

FOSTER'S PHONE CALL

"If this was a movie, the critics would say it couldn't be real," Collins thought as his tele-
phone conversation with Trustee D . Harvey Foster ended. The events of the previous
four months ran through his mind. (See Exhibit 3 for a timeline of events.) It had all
begun when he, Morris, and Russell had gone on a campus safety patrol after a fellow
student's death in December 2006. That night they accidentally discovered confidential
payroll records which they believed were evidence of security issues and possible finan-
cial misdeeds at Tech.
Anonymous sources sent them additional documentation, which indicated tens of
thousands of dollars of personal expenditures had been made for President Fargo from
university funds. Afier the Tech-3 demanded Fargo's resignation, strangers walked up
to them on-campus and rushed away quickly after handing them receipts that proved
such allegations. The new multi-million dollar athletic complex had cracks in the foun-
dation and the walls, and the construction was backed by a performance bond from a
company not licensed to sell such insurance.
Now, Collins had recorded a phone conversation with Trustee D. Harvey Foster to
get proof of the abuse of power and fix responsibility for the university's mismanage-
ment and financial problems. "What am I doing?" Collins thought. "I like Trustee
Foster." In recent weeks, Foster had expressed seemingly genuine concern for all three
students. It was Foster who had called tonight and asked about Collins' hearing with
the Tech disciplinary committee. Foster said he would do what he could to help Collins
get an appeal of his suspension. Wasn't it Foster who persisted in raising questions about
the construction of the athletic complex? Wasn't he one of the good guys?
The only word Collins could use to describe the favors offered by Trustee Foster was
"bribe," and h e wanted no part of that. Yet, there were nagging questions in Collins'
mind. Hadn't he and his friends already done enough? Was this really their fight?
Weren't they risking a lot, with very little rewards, if any? Should he persuade Russell
and Morris to take the trustee's advice and keep quiet for a few weeks, in hopes the
whole situation would blow over?

NOTES

1. The names of all individuals, organizations, dates, and locations m entioned in the
case have been disguised. The information in the case is based on personal interviews
with the three students (the "Tech-3"); reports prepared by the students; newspaper
articles; television news reports; the university's fact book and website; minutes of
the university board of trustees' m eetings; state and federal audits; and legal docu-
ments, including sworn depositions, affidavits, and supporting exhibits. In order to
preserve the disguise, these sources have not been explicitly cited. The authors want

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to thank Maria Valle for initially bringing information about this case to our atten-
tion. Our sincerest gratitude goes to the Tech-3 students and their legal counsel, all
of whom have been so generous with their time, and whose ethics and character are
so inspiring.
2. Coastal Technical University Police Department report #05-0197 by Officer T. E.
Garvey, December 8, 2006.
3. State Auditor's Report (follow-up), March 2001.

Exhibit 1 Coastal Technical University President's Cabinet Organization Chart (Partial)

Yvonne Fargo
President
0
Melissa Sanders Jesse Dalton Wiley Volker
General Counsel Provost VP-Business

Forrest Patterson
Assoc. Provost and
Dean of Students

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Exhibit 2 Coastal Technical University Vice President of Business Organization Chart (Partial)

Wiley Volker
VP-Business

Fred Simms Albert Warren Sandra Rogers


Asst. VP - Facilities Asst.VP - Personnel Comptroller
and Administration

Becky Zuniga Terry Cheevers


Director of Human Director of Payroll
Resources

Sammi Nguyen Zeke Thomas


Records Retention Asst. Police Chief

2 clerks Keisha Lowe


Police Lieutenant

2 investigators

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Exhibit 3 Timeline of Events
Approximate Date Event
2001 Fargo became Accounting Department chair at Tech
1994-2001 Fargo served as dean of business at Tech
August 1998 Tech trustees asked State Auditor's Office for financial audit
1999 Department of Education required Tech to be on reimbursement basis for federal financial aid; caused
severe cash flow problems
2001 State Legislature threatened putting Tech into a university system and disbanding the local governing
board
February 2001 Fargo named as interim president of Tech
October 2001 Fargo named president of Tech
Fiscal year 2004 Athletic Complex opened and School of Business accredited
Late 2005 Inspector general of State Deptartment of Health issued audit report; cited significant financial prob
lems at Tech
November 2005 Tech Trustee meeting; discussed Athletic Complex problems
Fall2006 Collins entered Tech as a freshman; met Morris and Russell
December 4, 2006 Bonita Roberts, Tech student, killed in university housing
December 6, 2006 Tech-3 go on Safety Patrol, suggested by Student Government president; they found payroll records
in unsecured area
December 7, 2006 • Morris called President's Office; asked to meet about records
(morning) ·Two faculty saw Tech-3 and realized problems regarding records
• Tech-3 met with the vice president of business
December 7, 2006 • Another faculty member told Tech-3 to go back to Volker, vice president of business
(afternoon) • Russell and Collins met with Volker
December 8, 2006 • Morris called President's Office; later, Tech-3 met with president, vice president of business, general
counsel, DPS officer
• DPS officer filed report about payroll records; "case closed"
December 2006 • Tech-3 met with Trustees; threatened to go to the media
• Tech-3 cali State Controller's Office and State Auditor's Office
Dec. 2006-Jan. 2007 Semester break; Tech-3 decided president should resign
January 11 , 2007 Tech-3 wrote letter to Governor; asked him to "do something"
Next week Collins sent letter to ASG, calling for removal of Fargo
Two days after letter • Collins was summoned to President Fargo's office
was sent to ASG • Tech-3 went to meet with Fargo; Collins told her to resign
February 2007 • Tech Ranger Day at the State Capitol
• Tech-3 distributed Crisis Report, Book 1 to legislators
February 21, 2007 • Morris and Collins talked with Tech's director of internal audit
• Morris sent letter to legislators, asking for intervention at Tech
Late February 2007 Tech-3 distributed flyers regarding the city councilman on Tech payroll
Next several weeks • Hussell's father resigned from his position as academic advisor
• Russell terminated from his student employment in Admissions "due to budget cuts"
• Morris called before Tech disciplinary committee
• Russell and Collins called before Tech disciplinary committee
• Russell suspended; Collins suspended
• Tech academic vice president met with Morris; tried to persuade them to stop their campaign
against the president
March 2, 2007 ·Assistant vice president (over Police Chief) sent e-mail directing which officer (before midnight) was
to investigate the identity theft charges
March 2, 2007 Collins and Russell arrested and charged by Tech Police with identity theft
March 3, 2007 • Charges of identity theft were dismissed by the judge due to "no probable cause"
• Tech vice president of business called meeting about identity theft (even though he had directed the
charges be filed the night before)
Approx. one week later Tech Police Chief forced to resign
early March 2007 Tech-3 distributed Crisis Report, Book 2
March 31 , 2007 Collins recorded telephone cal l with Trustee Foster

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