How an STLCC employee allegedly funneled 5.4 million from a state fund into a fake company on behalf of the college
BY: Briana Heaney
*Story Updated at 12:11 p.m. 5/2/19 to include information about the 2009 conviction of Steven Wyatt Earp for embezzlement of funds from an STLCC Campaign.
Donald Robison has been with the school for 27 years, at least 10 of which he has been allegedly embezzling money from a fund designed to “provide assistance in reducing employers cost associated with expanding a workforce,” according to the suit filed by St. Louis Community College on April 30. 2019.
Robison is currently on administrative leave pending the investigation.
According to Chancellor Jeff Pittman, STLCC administrators became aware of the alleged mismanagement of funds on Tuesday, April 23, 2019. The filed lawsuit documents claim that Robison embezzled no less than 5.4 million. This discovery was passed on by employee of the school, an unnamed whistleblower who tipped off administrators, said Pittman.
On May 1, STLCC posted a press release to offer details about the lawsuit and pending investigation.
According to Pittman, STLCC had previously established an arrangement with Missouri’s Department of Economic Development or DED. The college authorized, administered, and dispersed money from the state fund at a 15 percent fee, and had the exclusive privilege within the St. Louis metro area to do so. The college also had its own career development program that the funds could be allocated to without incurring a fee.
“When I found out about it [this arrangement], quite frankly I was surprised,” said Pittman.
Donald Robison acted as the manager for the workforce solutions group and had the responsibility and sole authority of approving and dispensing the state’s money to third party training forces as well as to the school. He also served as CEO of MS Services, his own company that he founded in 1999. Robison was both administering and receiving the money from the training fund. However, according to the lawsuit, MS Services allegedly had no employees and did not take part in job training while allegedly pocketing money from the training fund.
“Funds [were] being diverted away, in a manner that was totally inappropriate. to a fictitious company, that this employee owned, and we believe was the only employee of,” said Pittman.
What safeguards failed or to what oversight duties went unfulfilled? School administrators said they do not know yet.
“Were working to discover that,” said Pittman. “This [investigation] is evolving and a lot more will come out over time.”
The dollar amount and the span of time that Robison was allegedly embezzling is also not completely clear as school administrators plan to work with the state, said Pittman. The college has also hired Greensfelder Law Firm, a firm that played a role in uncovering details of the alleged embezzlement after it was reported, said Pittman. It is possible that dollar amount may exceed the estimated $5.4 million and that the actions of Robison took place over a longer span of time than the estimated 10 years, said Pittman.
Looking forward, Pittman said they do not know what is to come just yet. In terms of past safeguards to prevent mismanagement of funds, Pittman said that there were many, but this particular case “fell out of the loop.”
This is not the first embezzlement case affecting STLCC, though. Steven Wyatt Earp, a former Meramec student and political consultant for the Proposition E-J campaign was convicted in 2009 of two felony counts of stealing more than $25,000 from the STLCC campaign Citizens for Education and Job Training in 2006. He was ordered to repay $189,000 and was sentenced to probation.
When asked about the previous case tying embezzlement to STLCC, Communications Manager Nez Savala denied knowledge of the incident. Chancellor Pittman did not comment.
*Stay tuned to MeramecMontage.com for more updates to this story.
