Former University of Michigan administrator pleads guilty to embezzlement charges
A former University of Michigan administrator admitted today that he purchased computers using university funds and resold them to pocket the cash.
Donald Lewis Sims Jr., the former business administrator at U-M’s Center for AfroAmerican and African Studies, entered a guilty plea during what was to be a pre-trial hearing this afternoon.
“There was a process of ordering laptop computers that ended up being used for non-university business,” Sims told Washtenaw County Circuit Court Judge David Swartz.
Swartz interrupted Sims at that point to note that his statement of guilt was “pretty vanilla.”
Sims tried again.
“Those computers were sold to individuals, and there was a monetary gain that came to me,” Sims said.
Swartz interrupted again, saying he wasn’t hearing Sims admit to any wrongdoing.
“I allowed them to be sold,” Sims then said. “I received monetary compensation.”
In pleading guilty, Sims agreed to pay $61,621.17 in restitution to the university within three years of his sentencing date. In addition, he agreed to "fully and truthfully” testify in any related cases.
In exchange, prosecutors dismissed three related counts and agreed Sims won't have to serve any jail time if he makes restitution.
Police had accused Sims of fraudulently purchasing at least 75 computers and 14 computer-related items valued at nearly $74,000. It was part of his job to buy equipment for CAAS, which is a unit of the College of Literature, Science, and the Arts.
He also was initially accused of making about $14,000 in other fraudulent purchases, for which the university was not reimbursed. According to court records, those purchases were made on a U-M credit card.
It’s unclear how many related cases there are.
On Thursday, U-M police spokeswoman Diane Brown said Sims' case is tied to arrests in Wayne County, where police are accusing 10 people, including Sims’ son, of stealing computers from Detroit Public Schools and selling them.
Sims’ son, Dion Lewis Sims, a Michigan State University football and basketball player, was arraigned today on charges of receiving and concealing stolen property.
A U-M audit of the CAAS found widespread problems in controlling spending, but university spokeswoman Kelly Cunningham said Thursday no other employees have been implicated in any irregularities.
David Jesse covers higher education for AnnArbor.com. He can be reached at davidjesse@annarbor.com or at 734-623-2534.
Comments
braggslaw
Fri, Sep 24, 2010 : 9:11 a.m.
Dion never had a chance with such a father. Too bad the kid has pro potential.
Grant
Fri, Sep 24, 2010 : 8:30 a.m.
I wonder how much more corruption exists in the hallowed halls. With the multi millions that go to the athletic department, perhaps a little due diligence should be done there as well.
Somewhat Concerned
Fri, Sep 24, 2010 : 7:28 a.m.
The U I know is serious about investigating wrongdoing, unless it is at one of Mary Sue Coleman's pet projects or programs.
trespass
Fri, Sep 24, 2010 : 7:19 a.m.
If you look at real businesses, when something like this happens they ask "who was responsible for watching him" and "what is wrong with our systems to detect fraud". Have you heard any of that from the University Administration? And you never will because even if they ask those questions they will never make it public. That is part of the transparency they never provide us taxpayers.
Elaine F. Owsley
Fri, Sep 24, 2010 : 7:12 a.m.
It isn't the University that is corrupt. It's some of the people who work for it and take advantage. Who is going to hire Sims so he can make enough money to pay back what he stole?
trespass
Fri, Sep 24, 2010 : 7:09 a.m.
The institutional corruption will never be uncovered as long as the Administration controls the police. That was the dumbest thing the State legislature ever did was give UM permission to have its own police department and remove the jurisdiction of the Ann Arbor police and Sheriff's dept. @MjC & rcastentman- The idea that the UM investigates reports of corruption is dangerously naive. They only investigate the small fry, not the favorites. I reported to the compliance office fraudulently billing of time to grants and they not only refused to investigate but they threatened me with arrest by campus police on fictitious charges that I was "scaring people". Dr. Borisov reported fraudulent billing on grants and he was coerced into resigning (by the police officers) and arrested (he was acquitted on all charges). Reporting fraud or embezzlement at UM is a very risky business when they control the police.
ezbngreen
Thu, Sep 23, 2010 : 11:43 p.m.
Like father like son....
Lucifer Sam
Thu, Sep 23, 2010 : 11:36 p.m.
Folks, This stuff ain't nothing compared to the price tag UofM will spend rehabbing my old dorm, Alice Lloyd. The bill for this "renovation" will be north of $50 Million for a crappy 600 bed dorm; they should be able to just tear it down and build a brand new one with many more beds for that kind of money. That works out to over $80,000 per bed! Somebody is getting their meal ticket punched big time with that contract; I wonder how much of the money will end up in a numbered Swiss bank account. This guy probably sat around for years while everyone else around him was getting rich and finally decided to grab all the gusto he could for himself. The example is set by Mary Sue's relationship with P&G and the smoking ban on campus (apparently, members of the daily staff who reported on this issue heard from Mary Sue's chief ass kicker that Mary Sue was not happy with the way the Daily was interfering with the natural order of things!) In my mind, this case simply illustrates how the forces of law and order are completely asleep at the switch; kind of like a doctor who will only sell you Viagra but misses the cancer metastasizing in your body. Small fry like this moron get their knuckles wrapped while the institution crumbles under the weight of institutional corruption coming from the very top. There's two tier justice in this country; just us for the top tier and the Prison Industrial Complex for the rest of us complete with moronic, self-righteous judges to fool the clueless into thinking they're being protected from the evil ones who lurk amongst us.
Lucifer Sam
Thu, Sep 23, 2010 : 11:12 p.m.
Folks, This stuff ain't nothing compared to the price tag UofM will spend rehabbing my old dorm, Alice Lloyd. The bill for this "renovation" will be north of $50 Million for a crappy 600 bed dorm; they should be able to just tear it down and build a brand new one with many more beds for that kind of money. That works out to over $80,000 per bed! Somebody is getting their meal ticket punched big time with that contract; I wonder how much of the money will end up in a numbered Swiss bank account. This guy probably sat around for years while everyone else around him was getting rich and finally decided to grab all the gusto he could for himself. The example is set by Mary Sue's relationship with P&G and the smoking ban on campus (apparently, members of the daily staff who reported on this issue heard from Mary Sue's chief ass kicker that Mary Sue was not happy with the way the Daily was interfering with the natural order of things!) In my mind, this case simply illustrates how the forces of law and order are completely asleep at the switch; kind of like a doctor who will only sell you Viagra but misses the cancer metastasizing in your body. Small fry like this moron get their knuckles wrapped while the institution crumbles under the weight of institutional corruption coming from the very top. There's two tier justice in this country; just us for the top tier and the Prison Industrial Complex for the rest of us complete with moronic, self-righteous judges to fool the clueless into thinking they're being protected from the evil ones who lurk amongst us.
rcastentman
Thu, Sep 23, 2010 : 9:57 p.m.
Employees at the U are actually encouraged to report suspicious activity. Check this: http://www.med.umich.edu/compliancehotline/faq.htm
stunhsif
Thu, Sep 23, 2010 : 9:47 p.m.
Agree with InsideTheHall, have heard the same. Where there is smoke, there is usually fire. Of course, no action will be forthcoming!
Marshall Applewhite
Thu, Sep 23, 2010 : 8:21 p.m.
Wow.....a Michigan State football player was in on a felonious scheme? Color me unsurprised.
5c0++ H4d13y
Thu, Sep 23, 2010 : 8:13 p.m.
Good deal.
MjC
Thu, Sep 23, 2010 : 7:46 p.m.
Goldenchild states that "speaking as an employee, this University is corrupt" - if what you say is true then aren't you part of the so called corrupt system by accepting a paycheck while being silent? There is an anonymous tip line you can use to report anything you believe is not right at the UM. The University I know seriously investigates employee wrong doing and continually sets up new controls to weed out the con artists among us.
Kafkaland
Thu, Sep 23, 2010 : 6:27 p.m.
@goldenchild000: do you have any actual evidence for corruption at UM that is not already dealt with? If so, please post it and I'm sure someone will follow up. Or, at least, let the proper authorities on or off campus know about it. My experience is that I have never encountered a situation where accusations of impropriety were not taken seriously. Sometimes, they were found without merit, but only after a by the books investigaton.
goldenchild000
Thu, Sep 23, 2010 : 6:20 p.m.
I agree with user "Inside the Hall". People would not believe what happens here at UofM. Speaking as an employee, this University is corrupt.
InsideTheHall
Thu, Sep 23, 2010 : 4:45 p.m.
This is the tip of the iceberg when it comes to university fraud. A full investigation of the P-card will reveal some very embarassing situations. How many "home offices" for faculty have been paid for using a P-card??????????????? Check it out A2.com a Pultizer awaits.
Art Vandelay
Thu, Sep 23, 2010 : 4:44 p.m.
Did the U fire him? I sure hope so!
A22Ypsi
Thu, Sep 23, 2010 : 4:41 p.m.
I must not be reading correctly...the punishment for stealing $80,000 is a $60,000 fine? Nice profit margin.
Tom Joad
Thu, Sep 23, 2010 : 4:32 p.m.
A slap on the wrist is what most of these embezzlers receive.
liekkio
Thu, Sep 23, 2010 : 4:24 p.m.
Two cases with similar conditions come to mind: Kwame Kilpatrick and Kimberly Knight. Neither went too well.
ssAA
Thu, Sep 23, 2010 : 4:12 p.m.
Wow, this is the first I've seen his case linked to his son Dion's case. Dion must have been making his Dad proud.
Bogie
Thu, Sep 23, 2010 : 4:04 p.m.
More scandal.....Anyone honest anymore?