The Columbus Dispatch

OU house deal appeared improper, inquiry finds

- By Jennifer Smola jsmola@dispatch.com @jennsmola

An Ohio University realestate deal with an alumnus, donor and local businessma­n for a home for its university president in 2015 had the appearance of impropriet­y, the Ohio Inspector General’s office has found after a threeyear investigat­ion.

The investigat­ion began in spring 2015, after the university signed a lease for a home at 31 Coventry Lane in Athens for then-President Roderick McDavis and his wife, Deborah. The university had leased the house and negotiated an option to buy it and the surroundin­g property from John Wharton.

After the lease was signed, university officials learned that Wharton had promised more donations to the university once the sale was complete, including a pledged $100,000 gift to the Ohio University Athletic Department and promising to make another of the same amount.

University officials were made aware of Wharton’s donor records while compiling documents as part of public records requests from local newspapers. The revelation drew student protests.

By April 2015, the university’s vice president for finance and administra­tion announced that, to avoid the appearance of impropriet­y, the university would not buy the house.

Through requested records and interviews conducted by the inspector general’s office, investigat­ors learned that “Wharton had profession­al relationsh­ips with various members of the Ohio University negotiatio­n team, university management, and the Ohio University Foundation in a variety of capacities, including: as a university and foundation donor; a member of the Ohio Bobcat Club Advisory Board; an intermedia­ry with a local developer; a Realtor; and a property manager,” the inspector general’s report said.

“The Office of the Ohio Inspector General determined Wharton’s relationsh­ips with university staff, in conjunctio­n with this history of donating to both Ohio University and to the Ohio University Foundation, fostered an appearance of preferenti­al treatment when OU selected a property owned by Wharton to serve as a temporary residence for the family of OU President Roderick McDavis,” the report said.

Though Wharton had discussion­s with the athletic department about a conditiona­l $100,000 donation during the same time he was negotiatin­g with the university over the Coventry Lane property, the inspector general’s office found no evidence that McDavis, Athletic Director Jim Schaus or Senior Associate Athletic Director for Developmen­t Ryan White had shared Wharton’s conversati­ons with the OU staff involved in the property’s lease negotiatio­ns.

The investigat­ion found no evidence of a quid pro quo, the report said.

The report also found OU improperly paid more than $20,000 to a Wharton company for replacemen­t of decking and sod at the Coventry Lane home, but found no evidence that the university had requested the work be completed.

Ohio University General Counsel John Biancamano said Tuesday that the university found the inspector general’s report fair. He said the university already has implemente­d changes to avoid similar situations in the future.

“These can sometimes be positive experience­s for an institutio­n,” Biancamano said. “It’s not a bad thing for an institutio­n to have its books reviewed and its processes looked at. We looked at this as an opportunit­y to do things better and we’ll continue to try.”

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