Corbett nominates ex-SEC official to PSU board
STATE COLLEGE, Pa.
Gov. Tom Corbett has nominated a former U.S. Securities and Exchange commissioner to the Penn State’s Board of Trustees.
Kathleen Casey, a lawyer and 1988 Penn State graduate, completed a five-year term as SEC commissioner last year. She currently works for a Washington, D.C., firm that advises companies on legislative and regulatory issues. She is not related to U.S. Sen. Bob Casey.
“Kathy’s financial background, oversight experience and international perspective will make her an asset to Penn State’s Board of Trustees,” Corbett said in a statement. “I am proud to nominate someone of her caliber.”
The Pennsylvania Senate must approve the appointment to the three-year term.
An alumni watchdog group critical of the board, Penn Staters for Responsible Stewardship, released a statement Wednesday saying it would “strongly oppose” Casey’s nomination until trustees updated and received training on conflict-of-interest policies. The training was among recommendations from an internal investigation into the Jerry Sandusky scandal.
The former assistant football coach was convicted in June of child sex abuse involving 10 boys. He is scheduled to be sentenced Tuesday.
One other vacancy remains on the 32-member board.
Steve Garban resigned in July. The former chairman was criticized by some alumni in the fallout after Sandusky’s arrest in November.
Garban’s seat will remain open until next spring’s alumni election.
Former FBI director Louis Freeh led the internal investigation. The tab to pay for Freeh’s investigation, as well as other legal fees, consultants and public relations firms brought in by Penn State because of the scandal was $19.2 million as of the end of July, according to updated figures on a university website Wednesday. Of that, about $11.2 million went for Freeh’s investigation and crisis communications.
Freeh’s scathing report concluded that the late head coach Joe Paterno and three school officials concealed allegations against Sandusky. Paterno’s family and the officials firmly deny the report’s findings.
Another $4.5 million went to pay for the university legal services and defense, plus $2 million for the legal defense of the three officials — former president Graham Spanier, retired vice president Gary Schultz and Athletic Director Tim Curley, who is on paid leave.
Penn State has said the bill won’t be paid by tuition dollars, state appropriations or donations. The university will rely on insurance policies and interest payments on loans it makes to self-supporting units.
The bill doesn’t include a $60 million fine the school must pay over the next five years as part of NCAA sanctions. Nor does it account for any potential settlements in civil lawsuits related to the Sandusky case. The university has retained a Washington, D.C., law firm led by Ken Feinberg, to help resolve the claims. Feinberg ran the Sept. 11 victim fund.