Skating on Thinner and Thinner Ice

Harvard has witnessed its share of student scandals in the past two years.

First, Undergraduate Council Vice Chair Maya G. Prabhu '94 tampered with ballots and fixed an election for committee chair in the fall of 1992.

Prabhu's motivation? Politics and disgust with the council.

Next, Hassen A. Sayeed '96, another council executive whose star was on the rise, broke a state law by tape-recording a telephone conversation with the council's vice president, Joshua D. Liston '95, this spring. When word of Sayeed's actions fell into the hands of his political enemies, he resigned from the council before he could be kicked off.

Sayeed's motivation? Politics.

But the misdeeds of Prabhu and Sayeed pale in comparison to the charges Charles K. Lee '93 and David G. Sword '93 face.

The two have been accused of stealing more than $132,000 from a charity that helps treat children with cancer.

Lee and Sword have both been charged with larceny of money over $250, a felony that could bring up to five years in prison.

Lee has been charged with 58 counts of grand larceny, while Sword has been indicted on one.

In addition, Lee must defend himself against eight charges of Larceny of less than $250, a misdemeanor for which he could receive 18 months in prison.

The indictments were announced by a grand jury last Wednesday, following a year-long investigation into $160,000 discovered missing last July from the Eliot House Jimmy Fund accounts.

Lee allegedly stole almost $120,000, while Sword has been accused of pilfering more than $12,000.

The rest of the missing money could not be found, according to investigators. The alleged thefts occurred while the two were officers in An Evening With Champions, and Eliot House ice skating show.

A Evening With Champions was established 25 years ago to raise money for the Jimmy Fund, which was set up for research into--and treatment of--children with cancer.

An Evening With Champions had featured Olympic and other world-class skaters throughout its history. The show has raised approximately $1.5 million for the Jimmy Fund.

Lee was one of two co-chairs for the 1992 show, while Sword served as treasurer for the 1991 and 1992 shows.

Rachel L. Schultz '93, the other co-chair for the 1992 show, was neither a target of nor implicated in the district attorney's investigation.

Schultz did not return several phone calls.

The Case Against Lee and Sword

Mary Beth D. Cassidy, the assistant district attorney who is prosecuting the case, will try to show that the alleged actions of Lee and Sword were not one-time mistakes.

Indeed, each count against Lee represents a check he allegedly wrote for himself from the Eliot House fund.

The grand jury indicted Lee for a total of 65 checks form the period in between March 13, 1992 and June 9, 1993. One other count covers money Lee allegedly stole "at some point between February 12 and November 25, 1992" indictment records say.

According to the indictments, Lee started off slowly, writing himself three checks for under $250 between March 13 and March 17 of 1992.

In April of that year, the grand jury found, Lee wrote himself six checks for more than $250 and another check for less than $250.

On May 1, he allegedly wrote himself another for less than $250. He allegedly proceeded to make another seven withdrawals that month--each for more than $250.

Lee's alleged withdrawals continued for the next 13 months, as he seems to have written himself at least one check in every month until June 1993.

Indictment reports indicate that Lee never went more than 26 days without writing himself another check for more than $250.

According to the indictments, he had a high of 10 checks in June--nine for more than $250 and one for less than that amount--and a low of one check in December of 1992 and February and April of 1993.

And Cassidy say a review of Lee's personal bank records revealed that the money deposited into Lee's account from the Eliot House Jimmy Fund account was withdrawn by July 1993.

The money was withdrawn as cash and as payments for personal expenses, Cassidy said.

Sword will be tried on just one count of grand larceny. The charges stem from checks Sword allegedly wrote in the period begining "on or about October 2, 1991 continuing to on or about June 4, 1993," according to the indictment records.

The district attorney decided to charge Sword on one count. But that doesn't mean the allege evidence is reserved to one check.

Cassidy says she found 27 checks totalling $11,263.18 that were identified as being made payable to David Sword or related personal expenses.

Cassidy also claims to have traced another $1,175 of the missing money to cash backs taken by Sword when transferring funds to and from the Eliot House Jimmy Fund checking and money market accounts.

But in addition to the checks, Cassidy may also use testimony from the co-chairs of the 1993 show, Jonathan S. Kolodner '94 and Kelly L. Morrison '94.

In the Commonwealth's Statement of the Case, a public document written by Cassidy and submitted on July 20, the assistant district attorney claims to have a statement from Kolodner and Morrison.

"Lee told them that the economy was bad, the money was for them to do as they saw fit, and he did not care if the Jimmy Fund received a dollar, Cassidy wrote.

In the statement, Cassidy also wrote that when Sword was confronted, he admitted to taking money and apologized.

But later, Cassidy says, Sword "voluntarily provided to authorities a more detailed statement wherein he admitted the theft of approximately $10-12,000"

Sword's mother denied last night that her son provided a figure, although, she said, "I wasn't there."

And Sword's attorney, Robert Canty Sr., told the Boston Globe that the $12,000 figure his client was indicted for stealing "sounds a little high."

Around the House

The attorneys may also use evidence about Lee's spending habits.

It was no secret that Lee spent freely in his Eliot House days, numerous friends told The Crimson.

Lee owned a "very top-of-the-line stereo," according to four-year roommate and former Crimson President Julian E. Barnes '93.

But Lee was also apparently fond of fine clothes, and was always very well-dressed, friends said.

And Cassidy wrote that much of the money can be traced to Lee's purchases at Saks Fifth Avenue, Barney's The Andover Shop and Eddie Bauer.

"It's fairly safe to say that he was not living by meager means," says Malcolm A. Heinicke '93, a friend of Lee who lived in Eliot House.

"He was definitely a class act," Heinicke says. "Or at least, so we thought."

In addition to his extravagant clothing and stereo purchases, Lee was a regular customer at Leavitt and Peirce, a local tobacco store where he often bought cigars, friends say.

David A. Aronberg '93 roomed with Lee when they were first-years in Pennypacker but says he didn't have much contact with Lee after that.

Aronberg says Lee didn't spend an unusually large amount of money when they were first-years.

"He spent money," Aronberg says. "But I don't think he spent more than anyone else. It wasn't outrageous--it wasn't like anything that would catch your eye."

So where did a middle-class kid from Tenafly, New Jersey, suddenly get the money to live such a lavish lifestyle?

Friends say Lee claimed to have received a large inheritance from a wealthy relative at some point during his time in Eliot House.

Also during his upperclass years, Lee began working part-time at The Andover Shop. He usually received about $200 per week, according to owner Charlie Davidson.

"If true..."

The attorneys for Lee and Sword aren't giving any hints about how they'll defend their clients.

Lee's attorney, James W. Lawson, has refused to answer any questions, including queries about specific defense tactics he might employ.

And Canty has not returned numerous phone calls.

But an exclusive Crimson interview with Lee, as well as Cassidy's report, might provide some insight into the defense' strategies.

In an interview with The Crimson last summer, Lee said he had decided not to make a donation to the fund. He said the money had to be used instead to pay off longstanding debts and other expenses, which amounted to $50,000.

"This year, I decided to forego the donation," Lee said at the time. "When I decide to forego the donation, I didn't think about them. Instead, I was thinking about getting the show going."

Lee apologized at the time for not notifying the Jimmy Fund about his decision.

"I didn't communicate clearly to them," he said. "That's my fault."

Some of the unpaid debts included money owed WGBH-TV which had supplied a producer, Susie Dangel, for the show, Lee said.

Lee also said at the time that the $160,000 number sounded "a little high." He said donations made by An Evening With Champions had been declining because of higher costs.

Lee also said he informed Kolodner and Morrison of his decision to forego the payment that spring.

Kolodner and Morrison have said that they discovered the money was missing only upon assuming check signature power over An Evening With Champions bank accounts in the spring of 1993.

Every Nickel, Dime and Dollar"

The Jimmy Fund provides monies for research and treatment of children with cancer at the Dana-Farber Cancer Institute.

Regina Vild, a spokesperson for Dana-Farber, says that all contributions from the fund are desperately need.

"We count on every nickel, dime and dollar," she says of the Jimmy Fund.

But the lost money from the Evening With Champions show is particularly unsettling, Vild says.

"This comes from revenues that we count on year in and year out, knowing that Evening With Champions is a favorite in the New England region," Vild says.

The Jimmy Fund raises about $10 million for Dana-Farber every year, So $132,000 represents more than one percent of that budget.

But Vild tried to define what the lost money means not just to the center but to the kids.

Vild said that $132,000 can cover, with money to spare, the entire cost of a bone marrow transplant.

Such transplants are used for blood diseases such as leukemia and as treatment for solid tumors--and are, Vild said, life-saving.

Wait Until the Trial

Most reaction to the indictments was reserved. Many Eliot House figures have said that they want to reserve judgmental comments until after the case has been tried.

Mark T. Rosen '95, one of three co-chairs for the 1994 production of An Evening With Champions, said he hopes for a fair trial.

"I guess the only thing I would say is we just really hope that justice is served and that the whole incident can once and for all be put behind us," Rosen said in an interview last week.

Rosen did say that advertisers, even in the wake of a district attorney investigation, did not shy away from sponsoring the 1993 show.

He says the 1993 Evening With Champions raised $125,000 for the Jimmy Fund.

Eliot House Co-Master Kristine L. Forsgard also says she was happy the investigation did not interfere with last year's show.

"If true, these are the actions of two people, two individuals," forsgard says. "What is remarkable is that Eliot House students were able to make sure that the charity did not suffer as a result of the [alleged] actions of two individuals."

Never Happen Again

An Evening With Champions, in cooperation with the College and Eliot House, has taken several steps to ensure that funds can never be pilfered again--if indeed they were this time.

According to Anne Taylor, the University's point person on the Jimmy Fund affair, general record keeping has been improved.

"Records from the period of time when [Lee and Sword] were running it didn't exist" when the University investigated, Taylor says.

"We had an auditor come in who made a number of recommendations."

In addition, Taylor says, an advisory committee has been formed.

The committee, comprised of Dean of the College L. Fred Jewett '57 and other officials, periodically reviews financial records and receives reports, Taylor says.

In addition, double-signing is now required for large checks, Taylor says.

A theft "would literally be impossible to happen right now," co-chair Rosen says.