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Corporation demanding repayment from MU
HUNTINGTON -- An Ohio corporation is demanding repayment of stolen funds that were given to the Big Green Scholarship Foundation and to Marshall athletics for a luxury box at Joan C. Edwards Stadium.
In a letter sent from Ohio Bridge Corporation's lawyers to Big Green's lawyers at Bailes, Craig & Yon on Aug. 19, the company said it wants repayment of $50,000 that was allegedly stolen by former Barboursville resident Shaun Allen Clark and given to the Big Green in two, $25,000 donations.
Clark signed sworn affidavits in October, admitting he stole more than $2.2 million from the company between March 2008 and September 2009, while he worked as a controller. In the affidavits, Clark states he gave $100,000 to Ohio State and $72,500 to Marshall.
Because of that admission, attorneys for Ohio Bridge Corporation argue in the letter that further retention of the funds by Big Green constitutes unjust enrichment, which means the organization unfairly benefited from someone else's misfortune or by mistake. According to USLegal.com, the party that benefited is required by law to give it back.
The law firm cites several cases to back its claim for unjust enrichment, along with constructive trust and conversion. The latter two essentially mean that a person or organization has shown a legal right to the money, which is knowingly being held by another party.
The company is demanding payment by Friday, Sept. 3, or it will pursue all available legal remedies.
A source within the company said the deadline was intentionally set to coincide with the Thursday, Sept. 2, football game between Marshall and Ohio State in Columbus.
Ohio State repaid the full $100,000 not long after the affidavits were provided to officials at both universities.
A second letter to the West Virginia Higher Education Policy Commission, sets the same deadline regarding $22,500 that used for box seats and season tickets for Marshall football games. Ohio Bridge Company's lawyers also assert unjust enrichment, constructive trust and conversion.
"There is no question that Ohio Bridge has a superior right to the (funds) received by (Big Green and Marshall) from Mr. Clark," both letters state.
In an e-mail sent Tuesday from company's attorney, Scott R. Branam, he states that a letter has been received from the West Virginia Attorney General's Office, representing Marshall in regards to the football tickets.
"The letter basically said that Marshall did not have any obligation to return the money and would not return the money," Branam wrote.
Branam also wrote that the letter stated Clark purchased the suite at the stadium and that if Marshall returned the money, the university would lose out on the value of the suite for the year it was used.
Calls to the Big Green Scholarship Foundation and the organization's attorney, James R. Bailes, were not returned.
Clark and his wife are being sued in civil court over the remaining money that has not been paid back. Richard Rogovin, who serves as general counsel for Ohio Bridge Company, said the Clarks have made restitution of more than $1.4 million. Court documents from Clark's attorney show that Clark presented a $65,000 cashier's check upon the sale of a Lexus he allegedly bought with the embezzled money, along with $17,000 from a personal savings account and nearly $4,000 from sales of Ohio State football tickets. The company is seeking more than $1 million in unpaid money, including punitive damages, interest and legal fees.
This isn't the first time Clark has been in trouble for embezzlement. In 1999, he was convicted of embezzling about $40,000 from the former Huntington National Bank in Milton from March through October, 1998. He was 20 years old at the time.
He pleaded guilty on April 5, 1999, and faced up to 30 years in prison and a $1 million fine. But he was sentenced to serve three days of community confinement close to Columbus, Ohio, and had to repay restitution in the amount of $32,600 and a $1,000 fine. He finished his payments in 2004.
Rogovin said a lawsuit was filed against the former human resources director for failing to run a background check on Clark. The human resources director was terminated in 2009 for insubordination, he said.