MUNCIE, Ind. (AP)
— Two men who were convicted of securities fraud after stealing $13.1
million from Ball State University have surrendered homes and sports
memorabilia purchased with the money, but school officials say they
haven't received any restitution.
"The case remains
in the hands of law enforcement officials, as does any money recovered,
since it's an ongoing investigation," university spokeswoman Joan Todd
said.
George Montolio,
46, of New York and Seth Beoku Betts of Florida were convicted in federal
court in Manhattan and sentenced to federal prison for their roles in the
scams.
Court records
show that Betts, who is serving a 51-month prison term, made restitution
payments exceeding $694,000 in April — but none of it went to Ball State.
Some of the money came from the sale of a waterfront house that he
purchased in Florida with money he stole from the university, The Star
Press reported.
A second suspect,
George Cesar Montolio, forfeited Mike Tyson-autographed boxing gloves, a
Mickey Mantle-autographed baseball glove and New York City apartment
buildings to the government. The proceeds from the sale of the apartment
buildings went to a lender who made loans against them, and court records
don't indicate that he has made any restitution, the newspaper reported.
Montolio was
sentenced more than two years ago to 36 months in prison for wire fraud.
Ball State
officials said last fall that they didn't expect to recover more than
about $500,000 of the money taken in the investment scam, which the
university first learned about in September 2011. University officials
have said Gale Prizevoits, its former director of cash and investments,
altered records to conceal her investment of university funds in highly
speculative mortgage bonds. She also was responsible for altering records
that could have alerted the State Board of Accounts to irregularities in
the investments from 2008 to 2010, records show.
Ball State fired
Prizevoits in 2011 on grounds that she made a prolonged effort to cover up
the investments from discovery by her superiors, by the State Board of
Accounts and by internal auditors. She has not been charged but remains
the subject of a criminal investigation, according to Valerie Kroeger,
spokeswoman for Secretary of State Connie Lawson.