DePaul/Wintrust/Ponsetto...Conflict of Interest?

[Dish]

http://depauliaonline.com/33799/news/athletic-directors-relative-played-key-role-in-wintrust-agreements/

[GGGG]

http://depauliaonline.com/33799/news/athletic-directors-relative-played-key-role-in-wintrust-agreements/

This sounds like the prelude for a "for cause" dismissal.

[Dr. Blackheart]

The source said that Lenti Ponsetto was "involved in the process" and that she had a hand with "price points and deliverables."

At Marquette, it's "respect the process".  At Chicago-DePaul, it's "involved in the process".

[MU82]

It simply sounds like "the Chicago way."

[Eldon]

It simply sounds like "the Chicago way."

One hand washes the other...

Read the comments.  Some of JLP's people are commenting.  They raise the (valid) point that JLP doesn't have that much power at the university.  Something as important as naming rights would have to go through the BOT, and it's unlikely that JLP has sway over all of them.

[GGGG]

One hand washes the other...

Read the comments.  Some of JLP's people are commenting.  They raise the (valid) point that JLP doesn't have that much power at the university.  Something as important as naming rights would have to go through the BOT, and it's unlikely that JLP has sway over all of them.

But that's not really the point.  The reason you file conflict of interest statements is so that the potential conflict is acknowledged.  It may be deemed not to be relevant, but its better for the organization to address this up front rather than answer the questions after the fact - like they are doing now.

So while I am sure JLP doesn't hold sway over the Board, the fact that she may have played a part in the negotiations, and a potential conflict may have existed, should have been disclosed.

[Benny B]

But that's not really the point.  The reason you file conflict of interest statements is so that the potential conflict is acknowledged. It may be deemed not to be relevant, but its better for the organization to address this up front rather than answer the questions after the fact - like they are doing now.

So while I am sure JLP doesn't hold sway over the Board, the fact that she may have played a part in the negotiations, and a potential conflict may have existed, should have been disclosed.

While I agree with most of this, I would beg to differ on JLP's sway over the board... if JLP doesn't have the board wrapped around her little finger, then how - pray tell - does she still have a job?

Logic'd.

[ChitownSpaceForRent]

Maybe this is the push DePaul needs to oust JLP.

[Lighthouse 84]

Maybe this is the push DePaul needs to oust JLP.

That's what I was thinking.  That would be the best thing to happen to DePaul hoops in a while.  Maybe they'd get a competent AD who could improve the program.

[T-Bone]

While I agree with most of this, I would beg to differ on JLP's sway over the board... if JLP doesn't have the board wrapped around her little finger, then how - pray tell - does she still have a job?

Logic'd.

I am curious about what it is, but it seems clear that she's got something on someone.

[Eldon]

But that's not really the point.  The reason you file conflict of interest statements is so that the potential conflict is acknowledged.  It may be deemed not to be relevant, but its better for the organization to address this up front rather than answer the questions after the fact - like they are doing now.

So while I am sure JLP doesn't hold sway over the Board, the fact that she may have played a part in the negotiations, and a potential conflict may have existed, should have been disclosed.

That's fair. 

If you have to ask "wait, would this require a declaration of a conflict of interest?"  Well, then it's probably safer to fill one out than not.  If nothing else, it looks bad, and some overzealous students at the school newspaper may pick it up.

[ChitownSpaceForRent]

That's fair. 

If you have to ask "wait, would this require a declaration of a conflict of interest?"  Well, then it's probably safer to fill one out than not.  If nothing else, it looks bad, and some overzealous students at the school newspaper may pick it up.

Yea, I was looking back at some old articles from that student newspaper and they are fed up with the DePaul athletic department. Take a look at this gem.

http://depauliaonline.com/33819/sports/overhaul-years-overdue-in-athletic-department/

[mu03eng]

If she was in the room when it happened(And it sounds like she was) that is a conflict of interest and the fact no form was filed declaring it was filed means it's an ethics violation at a minimum and grounds for dismissal at the worst.

It's Chicago so it's not like this is prosecutable

[T-Bone]

Is this something the NCAA would find as a violation or infraction - failure to submit a declaration?

[LAZER]

So who is actually going to fire her? I assume the BOT was aware of this conflict.

[GGGG]

Is this something the NCAA would find as a violation or infraction - failure to submit a declaration?

No it's not an NCAA issue.

[GGGG]

So who is actually going to fire her? I assume the BOT was aware of this conflict.

Regardless she still should disclose it. 

[LAZER]

Regardless she still should disclose it.

Oh I 100% agree.  I know little about DePaul politics, but it seems JLP is pretty secure there and from a far it seems unlikely the admin will do anything about this.

[RJax55]

Oh I 100% agree.  I know little about DePaul politics, but it seems JLP is pretty secure there and from a far it seems unlikely the admin will do anything about this.

New President at DePaul.

[mueron]

Not including JLP's failure to disclose this seems to me to be not a big deal? Two organizations signed into mutually beneficial financial agreements? I know a little bit about Wintrust and I know they are very aggressive with pricing for commercial accounts. My last two employers switched to Wintrust, both baseball teams in Chicago I believe. They are growing rapidly with nothing to do with JLP.

[GGGG]

Not including JLP's failure to disclose this seems to me to be not a big deal? Two organizations signed into mutually beneficial financial agreements? I know a little bit about Wintrust and I know they are very aggressive with pricing for commercial accounts. My last two employers switched to Wintrust, both baseball teams in Chicago I believe. They are growing rapidly with nothing to do with JLP.

Let me start this by saying that I have presented on the importance of non-profit conflict of interest policies on a number of occasions. 

They are essential.  First of all, many states require that such policies by in place and that governing boards are vigilant in their oversight.  Independent auditors are supposed to review this policy and the responses to the policy submitted by directors, officers and staff.

Second, the IRS can levy tax sanctions on non-profit entities that do not have such a policy and/or do not adequately oversee its implementation.  (That is a pretty extreme penalty however.)

And again, it may not be a big deal at all.  However disclosing it is always better than not, simply because it can be acknowledged.  DePaul's trustees, while debating the agreement with Wintrust, could have simply put a line in their minutes indicating they reviewed a potential conflict of interest with JLP and determined it wasn't material.  That's really all they had to do.

[mu03eng]

Quite frankly the fact that a disclosure in this instance would have been easy and a non-deal break really makes me suspicious about this transaction. On the surface there was zero reason not to disclose the conflict, so why not?

[Dr. Blackheart]

Quite frankly the fact that a disclosure in this instance would have been easy and a non-deal break really makes me suspicious about this transaction. On the surface there was zero reason not to disclose the conflict, so why not?

I see Mike Madigan lurking...

[warriorchick]

Not including JLP's failure to disclose this seems to me to be not a big deal? Two organizations signed into mutually beneficial financial agreements? I know a little bit about Wintrust and I know they are very aggressive with pricing for commercial accounts. My last two employers switched to Wintrust, both baseball teams in Chicago I believe. They are growing rapidly with nothing to do with JLP.

It's a big deal because it's not an arms-length transaction.  Sure it was mutually beneficial transaction, but how do you know that DePaul couldn't have gotten more naming rights money from an unrelated entity?

If you were selling your house, and your real estate agent is recommending you accept a particular offer, wouldn't you want to know that the potential buyer was the agent's cousin?

[dgies9156]

It simply sounds like "the Chicago way."

Truer words have never been spoken.

As Mike Royko once said, the city's motto should be changed from "City in a Garden" to "Where's Mine?"