Over $300,000 embezzled from IU Foundation

An employee embezzled $326,334.64 from the IU Foundation, the foundation confirmed Oct. 17.

Matt Kavgian, director of strategic communications and projects at the IU Foundation, said nothing else could be confirmed because of an ongoing IU Police Department investigation.

IUPD received reports of the embezzlement Sept. 3. 

IUPD Capt. Craig Munroe said the IU Foundation was going through audits and noticed inconsistencies with the funds Aug. 21. After reporting the inconsistencies to the leaders within the organization, an employee called IUPD to report the embezzlement. 

According to an email attributed to Dan Smith, president and CEO of the IU Foundation, the employee was immediately dismissed. 

An independent firm out of Indianapolis has been conducting a forensic audit of the situation, which is scheduled to be given to law enforcement next week, Kavgian said.

Kavgian said the IU Foundation does not know what IUPD will do with this information.

“I believe their intent is to turn this case over to the FBI, so it would be a federal investigation at that point,” Kavgian said.

It is not believed any donor gifts were compromised.

This story will be updated.

Editor's Note: The Indiana Daily Student has an account in the IU Foundation used for newsroom fundraising called the Legacy Fund

CORRECTION: A previous version of this article incorrectly stated who reported the embezzlement to IUPD. Leaders within IU Foundation reported the embezzlement. The IDS regrets this error.

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