Seton Hall is latest U.S. law school to face embezzlement scandal

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An internal investigation found that a group of employees stole nearly $1 million

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The law schools at the University of Texas, Notre Dame, and Vanderbilt have also been victims of financial fraud

By Karen Sloan

(Reuters) - A group of employees at Seton Hall’s law school embezzled more than $975,000 over the course of several years, university leaders said Wednesday, making it the latest in a line of law schools to face worker theft.

Seton Hall did not say who was allegedly involved or how the funds were taken. An email to the university community from its president Joseph Nyre and board of regents chairman Kevin Marino said a “small number of trusted, long-time employees of Seton Hall Law engaged in a series of schemes and improprieties designed to enrich themselves at the expense of the school community.”

A university spokeswoman said Thursday that she could not comment on the status of the individuals involved and whether any charges have been filed.

The Wednesday email said the university has notified relevant officials and will cooperate in any investigations. Local state and federal prosecutors' offices did not immediately respond Thursday to a request for comment on the potential for charges to be filed.

The university launched an internal investigation into the law school’s finances in September after a review uncovered irregular transactions inside its administrative unit, according to Nyre and Marino’s letter. The university then hired a third-party auditor to comb through the law school’s books.

Seton Hall law dean Kathleen Boozang stepped down from the position earlier this month. Asked whether the departure had any connection to the alleged financial misconduct, a university spokeswoman referred to a November announcement from Boozang in which she said it was the right time to "begin her next chapter" after more than seven years as dean.

Boozang, who did not respond to requests for comment Thursday, is slated to spend the spring semester as a visiting scholar at Harvard Law School before returning to teach at Seton Hall.

Seton Hall is not the first U.S. law school to face an embezzlement controversy. A former University of Texas law school facilities director in March pleaded guilty to one charge of theft of property after a university investigation found he stole $1.2 million over nearly four years through fraudulent contracts, invoices, and the improper use of procurement cards.

A former administrator of the clinical program at the University of Notre Dame law in 2018 pleaded guilty to numerous counts of theft for embezzling nearly $200,000 from the clinic’s operating funds and from its IOLTA account—an account that holds client funds in trust and bears interest that can be used toward legal aid.

A former administrative manager at Vanderbilt University Law School in 2012 pleaded guilty in the theft of more than $535,000 from the school. He was accused of writing fraudulent checks and using a university credit card for personal purchases.

Nyre and Marino’s letter said Seton Hall is in the process of implementing financial safeguards and internal controls.

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