Ex-prosecutor helps Ball State avert future fraud

MUNCIE, Ind. - A former federal prosecutor and a CPA firm are creating a plan to help Ball State University avoid a repeat of two investment scams that cost the university more than $13 million.

Indianapolis attorney Deborah Daniels and Crowe Horwath are reviewing the university's practices to develop a plan that identifies best practices for selecting brokerage firms and state-of-the-art software. The Star Press reports it also will establish a whistle-blower hotline operated by a third party and take steps to ensure that a single safe-keeping firm holds all securities.

Other information gathered by Daniels and the CPA firm will be forwarded to the Delaware County prosecutor for review.

Two men were convicted and sentenced to federal prison in the scheme. Ball State fired investment director Gale Prizevoits in 2011.