State: Shumaker May Have Violated Law by Impeding Investigation

State: Shumaker May Have Violated Law by Impeding Investigation

October 9, 2003

NASHVILLE (AP and WATE) -- A special report released Thursday by the state finds former UT President John Shumaker may have violated the law by impeding an investigation into his spending.

The report by the state comptroller's office finds Shumaker made several "misrepresentations" to auditors about his travel expenditures. It also says he instructed his secretary to alter his calendar in an attempt to hide what he'd done.

The report says those actions may have violated statutes that require public officials to cooperate with auditors and that prohibit tampering with or fabricating official records.

The 110-page report reveals nearly $32,000 in "questionable expenditures" related to personal travel and other expenses.

In July, 6 News was first to question Shumaker's use of the UT airplane. As pressure mounted, Shumaker reimbursed UT in August with a $25,000 check for questionable flights. 

According to the comptroller, auditors found "four clear situations in which Dr. Shumaker misrepresented his actions." One of those was a trip to San Antonio, where he shared a hotel room with a "female conference attendee." The report went on to identify the woman as Dr. Carol Garrison, president of the University of Alabama at Birmingham. She worked with Shumaker previously at the University of Louisville.

The report also points out the "mishandling" of a nearly $300,000 no-bid contract with Shumaker's friend Charles Fishman. And it says the nearly $500,000 of additional work he authorized on the UT presidential home after moving in was inappropriate.

Morgan said "the review did not substantiate" allegations that Shumaker's ex-wife, Lucy, made saying he was given interview questions in advance of being hired.

Part of the report also references letters to and from John Shumaker. One e-mail reveals what was happening behind the scenes as Shumaker looked for an executive vice president. In July 2002, Steve Leonard wrote "It occurs to me that you ought to engage a few other board members to help you recruit me. It will give you some cover if there is any blowback on anything." Leonard goes on to write "I would have Haslam, Stokely and Thornton all call me to 'convince' me to join you guys."

Leonard helped Shumaker get the UT presidency and eventually got the $225,000 a year executive vice presidency. Leonard resigned four weeks after Shumaker.

But Shumaker isn't the only one taking the heat. The reports finds that the UT Board of Trustees didn't have an adequate system in place to effectively monitor the president.

"Rather than recognizing that there were control weaknesses in certain key areas in his operations and taking steps to improve them, Dr. Shumaker took advantage of these situations," State Comptroller John Morgan wrote in the report's cover letter.

The report was forwarded to the state Attorney General's office and to the prosecutor in Knox County, where the university is based. Criminal charges against Shumaker could follow. Tampering with evidence is a felony punishable by three to 15 years in prison.

Dr. Shumaker could not be located for comment and a call to his attorney wasn't immediately returned.

The report was released Thursday morning at a meeting of the Legislature's joint Fiscal Review Committee.

Shumaker resigned August 8th amid questions over his spending and ethics practices.

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6 News Reporter Amelia Graham also contributed to this report.

(Some portions of this report, copyright 2003 by The Associated Press. All Rights Reserved.)