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One hundred eleven years ofedtorialfredom
NEWS: 76-DAILY
CLASSIFIED: 7640557
wwwmichigandaily.com
Friday
March 22, 2002
Ann Arbor, Michigan 3 ..e ....... , . . - ' " -02002 The M! gan tlnii
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Federal
Court
'Former basketball booster loaned more than
$600, 000to '
By Shannon PettypIoco
Daily StaffReporter
Former Michigan men's basketball booster
Ed Martin was indicted in Federal Court yester-
day on charges of illegal gambling and giving
more than $600,000 to former Michigan bas-
ketball players.
After an investigation by the Federal Bureau
of Investigation and the Internal Revenue Ser-
vice, Martin and his wife were arrested in their
home yesterday morning.
The indictment states that Martin "loaned"
Chris Webber, who currently plays for the
Sacramento Kings, $280,000 during his high
school and college career.
Webber's agent Fallasha Erwin told The
Associated Press he did not know about the
loans between Webber and Martin.
Other professional players from Michigan
who have accepted loans from Martin include
Charlotte Hornets forward Robert Traylor,
who received $160,000 and Houston Rockets
forward Maurice Taylor, who received
$150,000. While Martin was loaning thou-
sands of dollars to Michigan athletes, he only
reported on his income taxes that he made
between $20,000 and $26,000 a year. The
indictment also said Louis Bullock received
$71,000. Bullock is now playing pro basket-
P players, zcludbzg Webber
ball in Europe University General Counsel Marvin Krislov
According to the indictment, Martin loaned said in a written statement that the athletic
money to the players in order to hide his illegal department has put this situation behind it, but
earnings. will continue investigating any illegal actions.
National Collegiate Athletics Association "The allegations in the indictment involve
spokeswoman Jane Jankowski said the NCAA events occurring many years ago," Krislov said.
will be reviewing the case and considering "As we learn more we will determine what
whether to sanction Michigan's athletic additional investigations, if any, should be con-
department. ducted. We will consult with the NCAA and
"This is a federal indictment, it doesn't have others in making this decision."
anything to do with NCAA. What the NCAA The Martin saga first hit Michigan on Feb.
will do is look at all the available info and make 17, 1996, when Taylor crashed his Ford Explor-
a decision on how to process this case," er while a number of teammates and potential
Jankowski said. "We will be making a decision recruits were in the vehicle. That crash triggered
after we have had a chance to review the infor- the first of three investigations into the Michi-
mation." gan basketball program, which lead to the firing
According to NCAA rules there is a four- of head coach Steve Fisher, who led the Wolver-
year statue of limitations on penalizing pro- ines to a national title in 1989 and two other
grams, but the regulations also state that the Final Four appearances.
four-year timeframe can be extended. Other Brian Ellerbe, one of Fisher's assistants, then
schools that have been charged with similar took over the coaching duties, and compiled a
allegations include the University of Nevada at 62-60 record before being fired last March.
Las Vegas and Kentucky. Both schools were Michigan's current coach, Tommy Amaker,
placed on probation, banned from the NCAA was not at Michigan when the incidents took
Tournament and lost their television rights. The place, and said he is concentrating on the future.
UNLV program was almost dissolved. "As far as we are concerned, these matters
Since all parties involved in the illegal are in the past, and we will continue to move
acceptance of funds are no longer involved in forward," Amaker said in a press release. "We
Michigan's athletic program, it is questionable are committed to building the Michigan bas-
if the NCAA will sanction Michigan's program. ketball program the right way."
AP PHOTO
Former Michigan basketball booster Ed Martin leaves federal court in Detroit yesterday afternoon.
Martin was indicted yesterday on charges of illegal gambling and giving money to former 'U' players.
Andersen connected to B-School
By Ted Borden
Daily Staff Reporter
Beleaguered accounting firm Arthur
Andersen, the auditor under fire for shredding
key documents related to Enron finances, has
a substantial connection to the University
Business School, officials say.
"Their cumulative financial support to
UMBS now exceeds $1 million," Margaret
Carroll, managing director of development
and alumni relations at the Business School,
said:
"They provide scholarship support for
Business School students and have funded a
chair in accounting," she added, noting that
Andersen is also "represented on our Corpo-
rate Advisory Board, which represents the
voice of our corporate customers ... (and)
represented on our Paton Accounting Center
Advisory Board."
For the 2000-2001 fiscal year, Andersen
donated between $50,000 and $99,999, allow-
ing the company to be listed as a partner in
the Business School's Associates Program.
Additionally, Andersen has filled its ranks
with many Business School graduates. Car-
roll said that over 300 alumni work for the
firm. Most recently, Andersen hired 13 mem-
bers of the class of 2002 for internships and
11 members of the class of 2001 for full-time
positions, Al Catrone, director of career devel-
opment at the Business School, said.
Although he is the Business School's
Arthur Andersen professor of accounting,
Russell Lundholm stated he has no connec-
tion to the company.
"My only association with Andersen is
through the chair," Lundholm said. "I haven't
worked for them in the past. The firm's part-
ners gave ... long ago to have an accounting
chair endowed in the name of the firn."
But this practice is not unfamiliar in the
Business School, as other firms have also
"Their cumulative financial support to UMBS
now exceeds $1 million.
- Margaret Carroll
Business School Managing Director of Development and Alumni Relations
funded professorships.
"I am simply the current chairholder, which
means I have a research account and a very
small extra stipend added to my pay," he said,
noting that "both of these perks are available
to non-chairholders as well."
Regardless of Andersen's future, the posi-
tion will remain.
"If the firm goes broke, then I believe the
name of the chair remains the same, since that
was how it was endowed," Lundholm said.
Outside of the Business School, the Uni-
versity does not have other Andersen con-
nections, Erik Lundbergh, University chief
investment officer, said. For the past three
years, the University has turned to Price-
waterhouseCoopers for auditing services,
he said. Prior to that, Ernst & Young held
the position.
Andersen is struggling to remain afloat
after receiving criminal charges of obstruc-
tion of justice for its possible role in the
collapse of Enron and is dealing with a
mass exodus of top clients. The firm report-
ed yesterday that it was selling off many of
its divisions in Asia to competitors.
BRETT MOUNTAIN/Daily
Lt. Gov. Dick Posthumus is seeking the Republican nomination
for governor this year. Posthumus says lower taxes have
strengthened Michigan and diversified its economy.
Posthumus
prepares for
govern-or race
By Loule MelzIlsh
Daily Staff Reporter
Lt. Gov. Dick Posthumus said he first ran for office in
1982 when he was worried his children would have to go
outside the state of Michigan to find jobs. Now, as he seeks
higher office, he said he no longer worries about that.
In an interview with The Michigan Daily yesterday,
Posthumus commented on the numerous tax cuts he and
Gov. John Engler have pushed through the Legislature
since 1990, when Engler was elected governor and
Posthumus was chosen to replace him as the state Sen-
ate's majority leader. He credited the cuts with creating
jobs and bringing Michigan's economy back from the
m'brink. Elected lieutenant governor in 1998, Posthumus, a
Republican from Kent County's Alto, would again like to
replace Engler, this time as governor. Engler is barred
from seeking a fourth term due to term limits.
"I led the battle in the Senate to cut taxes so that peo-
ple could invest in Michigan," he said. "Now we're creat-
ing jobs here."
A good portion of Posthumus' agenda centers around job
growth in Michigan, which he said he believes occurs when
taxes are low.
"I will not raise taxes. I have a leadership history of cut-
ting taxes and I will continue to do that," he said.
Winners will
be named
over weekend
MSAeteci os
Winter 2002
By Tomislav Ladika
Daily Staff Reporter
Michigan Student Assembly election polls closed last
night, although the vote totals for individual candidates will
not be official until the weekend.
But the LSA student government can be considered an
early winner, due to a record voter turnout.
LSA-SG collected 4,977 votes during the two-day elec-
tion period, breaking the previous record in the Winter 2000
LSA sophomore Michael Shrage dressed up as Winnie the
Pooh yesterday to help Matt Stone with his campaign.
election for ballots received by 595 votes, according to sta-
tistics provided by Election Director Collin McGlashen.
MSA also collected a high number of votes, with 6,858
ballots received, and 1,200 students voted in the University
of Michigan Engineering Council election.
LSA-SG presidential candidate Monique Luse said the
See ELECTIONS, Page 7
House passes
for higher ed
By Loul6 Meiziish
Daily Staff' Reporter
Putting the final touches on an agreement to fund
Michigan's 15 public universities, the state House of
Representatives yesterday approved an appropriations
bill that will give the University the same amount of
state funding for the coming fiscal year as it did this
year.
The House concurred with several amendments
tacked on to the bill by the Senate on Tuesday, and the
bill will now go to the governor's desk for his approval.
Under the agreement reached in late January, the Uni-
versity will see no decrease in its funding, but it must
not increase tuition by more 8.5 percent.
Susan Shafer, spokeswoman for Gov. John Engler,
said the bill probably still meets with Engler's approval.
After being introduced as a bill in the Senate, the
agreement had been amended several times by both
chambers of the Legislature..
"We'll take a look at it, but it looks like it's in pretty
good shape," she said.
Under the agreement, the University's Ann Arbor
campus will receive $363.6 million for the 2002-2003
fiscal year, which begins Oct. 1. When it received the
same amount this year - a 1.5 percent increase from
the 2000-2001 fiscal year - the University raised
tuition 6.5 percent.
Interim Provost Paul Courant said the University
should have no trouble keeping the next tuition increase
under 8.5 percent and said he hopes to make it even
lower. In light of rising costs for the University,
Courant has asked the deans to account for a 2.5 per-
cent cut in their budgets.
I J
Detroit plans many projects for
revitalization of Detroit-area
By Jordan Schrader
Daily Staff Reporter
Detroit is not the first place that
comes to mind as a tourist hot spot,
but city leaders want to change that
perception. The Detroit Metro Con-
vention and Visitors Bureau has
developed a 10-year plan to improve
senior vice president, said the best way
to draw more tourists is by not only
informing people of the good things
about Detroit but also by making the
city better. To that effect, the plan
focuses on specific ways to improve
Detroit and the surrounding area.
The strategy encourages the con-
struction of an aquarium on the
Windsor.
Many tourists would come to the
two cities to ride the gondola, Con-
nellan said. He said the cities have
been exploring the possibility for
some time and are now searching for
the best location.
"Early research on the gondola
suggests there would be about three