Tuesday, October 16, 1973

THE MICHIGAN DAILY

Page Seven

Tuesday, October 1 6, 1913 JHE MICHIGAN DAiLY


Accusations

against

Gill

lack

(Continued from Page 1)
or three tellers, Gill says he was
informed by another teller thnt to
-.set up such an account he would
need the organization's corpmrate
papers and its tax ID number.
Gill had neither of these items
in his possession, he says. He
claims he was unaware of the com-
plicated procedures involved in set-
ting up such an account.
Rather than carry the check
back to the city, Gill says he de-
cided to set up two accounts in hisI
own name with the intention of
coming- back the next day to ,
change them to SGC accounts.
HE SUBSEQUENTLY set up two
savings accounts, one that could'
not be touched for 90 days-a time
savings account- and another that
could be drawn upon at any time.
.The accounts were put in theI
names of Lee Gill and K. Haywood,
a friend of Gill's who had met him
in Detroit that day. Haywood's
name had to be added because Gill
had only a student ID in his pos-
session. He claims to have left his
wallet at home.
However, Labadie, the bank of-
ficial who set up Gill's account,
gives a substantially different ver-
sion of the day's events.

Ann Arbor and trying to set up The last SGC administration,
an account in Detroit and to the headed by President Bill Jacobs
type of check he was carrying. and Treasurer David Schaper, re-
portedly had as many as 11 of
ACCORDING to bank officials, a these outside accounts.
cashier's check addressed to a When Gill took office, he and
bank is used to pay debts owed to other SGC officers decided to re-,
the bank. A check to set up a cor-I tain the outside accounts. Accord-I
porate account should instead be ing to Mullin, however, they also
made out in the nam theo ter- felt the accounts needed to be con-
solidted setting up the accoutt. .fsolidated for bookkeeping purposes.

soning, according to Mullin, is why
the accounts were moved to De-
troit in the first place.
A memo explaining the transfer
of funds to Detroit was sent out
to all council members. Although
it was dated June 17, Fowler, who
wrote the memo, admits that it
was not sent out until after the
funds were transferred.
GILL'S CRITICS c h a r g e the
memo was written after the fact
as an attempt to cover for the
alleged embezzlement a t t e m p t.
Fowler and Gill both claim the
memo was written earlier, but as

proof
a result of administrative foul-ups
was not ready until the later date.
Dawn Anderson, SGC's secretary
at the time, cannot recall when the
memo was written.
Within the last two weeks, an
SGC committee headed by council
attornev Tom Bentley has been set
up to look into the incident.
BENTLEY ALSO said that an
audit of SGC's books would be
made within the next three weeks
as a means of investigating other
charges of corruption levelled at
both former SGC President Jacobs
and Gill administrations.

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Labadie subsequently put in a
call to the bank's Loss Prevention
Department headed by John Ken-
nedy. Kennedy checked with the
Huron Valley Bank in Ann Arbor.
He was informed that Gill had !
taken the money from SGC ac-1
counts and had personally request-
ed the cashier's check.
Kennedy also sent out a memol
to other Detroit banks warng
them not to deal with Gill.Al
though he denies issuing such a
memo, The Daily has robtained
copies of it from persons con-
nected with therbank.
OFFICIALS of the Huron Valley
Bank contacted the University
that same afternoon, and Vice
President for S t u d e n t Services
Henry Johnson looked into the
matter. He met with Gill andj
spoke to officials from both banks.
Arrnric toilnn ah A ~

SGC OFFICERS were also wor-
ried about the possibility of the
University trying to restrict the
o u t s i d e accounts, says Mullin.
Pressure to do so reportedly had
been coming from the Regents,
who were particularly incensed by
the council's attempts to sue them.
With this in mind, council off i-
cers decided that the money would
more likely be safe from Univer-
sity control if it were kept some-
where outside the city. This rea-

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A SCHOOL OF

AS HE RECALLS the incident, ' Acording to JoI1si, ne naa no
Gill walked directly from the reason to believe there was any
bank's door to his desk and in- criminal activity involved in the
quired about setting up a ;avings transaction.
account. He says he subsequently The Ann Arbor police depart-
directed Gill to a teller's window. ment as well as the Detroit News
Labadie, who consulted with the and Ann Arbor News were made
teller several days after the in- aware of the incident by anonym-
cident, claims Gill then asked the ous phone calls. According to Po-
teller about setting up a time sav- j lice Chief Walter Krasny, his de-
ings account. She sent Gill back to partment has uncovered no evi-
Labadie, who set up the accounts. deence that would indicate Gill
Labadie's description of the ac- committed any crime.
counts that were actually set up
is essentially the same as Gill's: NEITHER PAPERS ran a story
about the incident.
ACCORDING to Labadie, Gill The following day, Gill, Fowler
never mentioned corporate ac- and Mullin went to the bank with
counts or SGC. However, Labadie the proper credentials ulanning to
admits he cannot be sure that Grill convert the personal accounts to
did not discuss the subject with corporate ones. All three agreed
several different tellers, either be- that bank officials were nervous

where

we

WHO AM I?

WHAT AM I?

think with

fore or after speaking with him.
The one teller Labadie is sureI
spoke to Gill was a summer em-'
ploye and is no longer at the bank.
Bank officials would not release
her name and denied The Daily the'
opportunity to interview other tell-
ers. Records of the transaction ,
were also denied.

and extremely hard to deal with
during negotiations held that tay.
According to Mullin, the three
decided to remove the mmney and
it was subsequently taken back to
Ann Arbor. The check was recon-
verted and deposited in a safety
deposit box at the National Bank
and Trust Co. of Ann Arbor.

Immediately after settinig up the A
accounts, Labadie claims he be- ACCORDING to Maurice Rnkel,
came suspicious. He attributes that University auditor of student ac-
suspicion to Gill's minimal identi- counts, the money "to the best of
fication, the fact that he was from my knowledge" has since been
____________---_ - -! b r t3 u gh t back under University
control.
Why the accounts were removed
out originally relates to the ques-
tion of SGC's complex system of
outside accounts.
The accounts were set up several
Sa y s h is years ago by council to give stu-
dent government greater control
over itshfunds. Previously, all SGC
g o tmoney had been kept in accounts
0 0 - controlled by the Student Azoounts
g Office.

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MEETING DATE: October 17 Wed.
TIME:7:30 P.M.
PLACE: Faculty Club Lounge
Student Union Building
Become more aware of yourself as a UNIQUE human being.

(Continued from Page 1)
without controversy.
Agnew took his leave, with
praise for Nixon and for Gerald
Ford, his designated successor in
the vice presidency.
His resignation, he said, could
not compare in importance with
the death of a President, but the
upheaval he had undergone re-
called to him the words spoken by
James Garfield upon the death of
President Abraham Lincoln:
"FELLOW CITIZENS, G o d
reigns and the government in
Washington still lives."
"I take leave of you in that same
sober but trusting spirit," Agnew
said calmly. "God does reign .. .
the government in Washington
does live, it lives in the pages of
the constitution and in the hearts
of our citizens, and there it will al-
ways be, safe.,
"Thank you, good night, and
f arewell."
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t
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BY PUTTING the funds in other:
banks, under the name of SGC In-
corporated, the council could get
at the money more easily.

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