The Nittany Nightmare Continues: More Financial Incest At PSU- Accused Perjuror Gary Schultz Head of Nittany Insurance Pays First Victim Payout AND His Lawyers

State College,  PA & Burlington, VT-  In the latest example of financial incest involving PSU, The Second Mile, and a bevy of double-dipping board members and executives, we arrive at the first discovery between an accused suspect in the case and his principal interest in an insurance company that recently paid out a settlement to an alleged victim of Jerry Sandusky.  As the filing has likely been sealed as a condition of it’s settlement, it is unknown if Schultz or anyone else within PSU in addition to Sandusky was named in the civil action.

Gary C. Schultz, interim Sr. VP for Finance and Business returned  following  previous retirement from PSU this past July.


His return to the PSU payroll  around the time that a grand jury was meeting about his possible complicity, FOLLOWING his own alleged perjurious testimony begs the question-As Schultz knew he was under investigation as well as Sandusky and Curley-

Did Schultz come out of retirement in anticipation of  incurring significant legal fees he did not want coming out of his own pocket?

-Record Scratch-

You read that correctly.

Mr. Schultz, who along with Tim Curley were bound over for trial at their preliminary hearing on perjury charges and a misdemeanor failure to report summons last month,  is being provided legal representation costs through Nittany Insurance Company, where he is a paid Director.  According to Acting President Erickson,  it will also be used to cover any civil settlements and judgements in the Sandusky debacle et al.

This would seem to be in violation of the Vermont Captive Insurance Regulations Section 12, or conflict of interest.

In a letter sent to Penn State Interim President Rodney Erickson,  Senator Michael Stack (D) Philadelphia,  expressed his concern that taxpayers and donors should not be footing the bill for the Universities necessary legal representation for the various civil and criminal issues  and potential settlements.

In a response to Senator Stack,  President Erickson assured him that such costs would be accommodated by it’s liability insurance.  Nittany Insurance Company  is listed as the professional liability insurance company of record on the PSU site as well as the provider for PSU students in programs including the Hershey Medical Center.

President Erickson did not reference Mr. Schultz’s directorship position within Nittany Insurance Company although was able to confirm with the Vermont Secretary of State that as of this afternoon, there are no pending changes to its registration.

Gary Schultz’s co-director at Nittany Insurance Company, is Allan Anderson,  Former VP and Chief Executive Officer for Hershey Medical Center.

While the captive insurance firm is self-administered, as Director,  Schultz would be in a position to review,  award, accept, negotiate or reject settlements within the framework of their contract with PSU and appropriate regulatory requirements.   Captive insurance companies are often developed as part of a risk mitigation strategy and as an entree to the reinsurance market for payouts exceeding a fixed amount.  Registered in Vermont, Nittany Insurance Company was formed in 1993.

It would seem a good starting point for questions on the regulatory  and compliance matter might be how the bid is/was awarded for initial self-administered liability coverage directed by a potential party and what the premiums, which are deductible to PSU,  were and  are?

What adjustments to same have been made in relation to the known incidents and corresponding dates alleged against Sandusky, Curley and Schultz?

What else is Nittany Insurance funding it may have had ample heads up about?

Does Schultz have a poster of Ken Lay in the top of his humidor?  Bernie Madoff?
 poster erose contributed to the research of this article.




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  1. beejay says:

    @erose and Blink: I know. I was reading all that late last night. I’ll go one further on it: maybe some TSM was, unawares, used to recruit college football players. Jer finds “special” TSM kid, privately coaches him–in football. Shepherds him thru youth football; then high school; talented ones are assisted with being recruited for college football and scholarships. If names ever get out, I’m looking to see if the kid who played for Turchetta, then Felus was a TSM kid. His parental history is convoluted.

    There’s a passage in Touched where Jer says he was worried about what the kids would think of him after he retired from PSU football. Can’t find it in the few chapters available on amazon. No longer have access to my borrowed copy. But it’s in memory. Makes sense.

    Not sure if everyone knows this, but in the state of PA, college recruiting or announcement of interest can start the second semester of the sophomore year or at the commencement of the Fall Sports program.

    PSU is one of the most proactive schools around at engaging interest that early.


    Where the pedophilia and other interests intersected–IDK. They’re so intertwined it’d be hard to sort out any pure motives. Possibly on the part of more than one adult male. At least one of my own candidates is dead now.

    Blink, you’re absolutely dead on about the other football parents. Oh, and we all know enough about college football recruiting and high school coaches to know that the latter sometimes benefit financially as well. They do where I’m from; so there’s a lot at stake for those men.

    BTW, is “humane” the same as “in our personal best interests”?? Wrt NBC’s story that there are 2001 emails btwn Spanier, Curley and Schultz about their decision re Jer and that shower incident.

  2. beejay says:

    Just one other comment: where did those TSM victims play golf? Somebody coach them?

  3. erose says:

    His testimony also described how Sandusky’s wife, Dottie, once walked in on them during sex.

    Read On ABC News Radio:

  4. erose says:

    This statement alone screams that Sandusky’s perversions were common knowledge.

    I’m in high school at this point, people are jealous, other kids are jealous, and they want to tease you. They’re saying things like you’re being molested by Jerry, you’re butt buddies.

    Read On ABC News Radio:

  5. beejay says:

    This is just too much to take in. If anyone runs across a means of sending emails of support to these alledged victims, please, please post it. I remember an earlier letter campaign. Letters are problematic, in large part because of the white powdery substance threat thing.

    Hope Victim 4′s girlfriend is donning an apron and cooking that fantastically heroic man whatever he wants tonite.

    Dottie calling out to the two of them in the hotel bathroom, indeed. Feed her dogfood for dinner.

    I am going to get there beejay, I promise.

  6. Word Girl says:

    Where do kids learn to play golf? Let’s start with a few resources.

    Penn State University has two golf courses, according to the above website. They have “expertly trained PGA professionals” who do the instruction. Joe Hughes is/was the General Manager.

    Then there’s Toftrees, of course:

    “Both individual and group instruction sessions are offered for kids and adults. Go to the Toftrees website and follow the Instruction tab to make and inquiry about lessons or Click here to register for Junior or Adult golf schools.”
    Derrick Strub is/was the Toftrees Head Golf Professional

    A little bit out of town is a golf course at Tussey Mountain: (Do we know Steve at Tussey Mountain?)
    “Kids Golf Camps: The PGA Sports Academy program will help youth learn to play golf and have fun in the process. The program includes three levels: Sport, Player, and Champion. Each level has five areas that will help youth learn, develop, and practice the skills necessary to become a better golfer and enjoy the sport…”

  7. Rose says:

    @beejay. interesting 9/11 retirement.
    saying again, private ownership investments?

  8. Rose says:

    You know, I’m with Blink: willingness to be a V pariah is rare.
    It ensured Jerry’s victim HSers’ silence.
    Vic 1 is very rare in his courage and was
    very expectably unsupported by school.
    This is the way things are in schools.

    The private school my public school dau’s abuser coach moved to?
    Continued the MO and the best V player had to move
    to a private across State in Baltimore the next year to escape.
    Family/she reported nothing to the school. They just left.
    You can’t jeopardize recruiting by being bad mouthed even by a loser coach.

    Vic 1 is rare as a high schooler willing to move,
    willing to be a pariah, and a hero imo.

    Beejay imo of course JS crossfertilized scouting TSM participants to id
    athletes he could develop and refer on to college scouts, with confusing scouting
    and his pandering needs.

  9. erose says:

    But the attorney general’s office, in a court filing in Schultz’s perjury case Monday, said that it recently came into possession of emails between Schultz, Curley and others “that contradict their testimony before the grand jury.” Prosecutors also said that Schultz recently turned over a file he kept relating to incidents involving Sandusky.

    The Sandusky File? These people.

  10. Word Girl says:

    Evidence presented as a contract between JS and a young TSM boy to give him $1k for college in exchange for good grades and sports practice as reports in today’s Chicago Tribune.,0,7267569.story?page=2

    I didn’t see the locals reporting this. Just the Disappearing Dottie Show…’Wonder what she fed her som , Matt?

  11. Word Girl says:

    Where the clerk is Ganim??
    Is she being scooped by every other Cub in town?

    Hopefully no one has advised het that a video will substitute for a filed story.
    C’mon, Sara. Give us –30–

  12. Word Girl says:

    In… Speechless at auto-correct!

    Where in the *Fleek/Flik* is Ganim…is more like what I’m sure I one-finger typed.

  13. erose says:

    I don’t need this to post and I’m not endorsing, simply reporting. What do you think about contacting their attorney’s offices directly via email?

    People can show support by writing to Voices4Victims or Voices4Victims, 1637B N. Atherton St., P.O. Box 181, State College, PA 16803. Find them on Facebook at Victims.

    Read more here:

  14. erose says:

    That source said the e-mails also indicated that the school’s iconic football coach, Joe Paterno, had been consulted by at least one of the three men about the incident.

  15. Rose says:

    when JS takes the stand, ine key Q for him is “who did you get the Contract idea from?” or “an employee of TSM gave you the Contract idea, didn’t they?”
    Because he wouldn’t have thought of it on his own, and in the 70s it was an MBO tool to work with clients introduced into schools of social work.
    JS’ acknowledging he regularly talked about “his” kids with a TSM social worker,
    and getting tips from a TSM employee like “use a contract with a positive reinforcer reward (the cash) will go
    aways towards holding TSM responsible for failure to supervise JS

  16. beejay says:

    My golf comments are at Blink’s latest article (see #27 above)

  17. [...] Curley and Gary Schultz are currently awaiting trial on perjury charges stemming from their grand jury testimony which [...]

  18. [...] of convicted child molester Jerry Sandusky’s transfer to his new home,  what most predicted would follow- [...]

  19. J. J in Phila says:

    Rose, in answer to your question, you will note my first blog titled

    Basically, I’m originally from the area (for about 25 years), held public office while I was there, and went to Penn State. I am not happy with the possibility that Mr. Gricar might have been murdered. While I would not call that the MOST likely possibility, I would not call it the LEAST likely one either.

    Welcome JJ.

  20. J. J in Phila says:

    @beejay, you asked about this information:

    “He [Madeira] came in, he spoke to the police and looked at the file for 90 minutes (I’m not joking) and, on 1/10/06 said:

    “’From my overview of what I’ve seen from them today, they have done a great job looking into all information that has come in and exhausting every lead. I will say I was impressed by the level of the work that was done. They have left no stone unturned.’”

    It was from the CDT, 1/11/06. I have, over the years talked to people involved with the Gricar case, but much of it is looking things up.

  21. J. J in Phila says:

    @Blink, you wrote, a while ago:

    “The Monday following Gricar’s disappearance, he was to testify, yes, I am using the word testify, in some sort of hearing involving a prosecutor who tried drug cases. I could not locate that docket.

    Why was Madeira handling the Lee case in the first place? Who needed two prosecutors for that slap on the wrist?”


    “Why did Corbett send Madeira to usurp Smith?”

    At least according to the nephew, Gricar was going to testify that the ADA could examine one of the witnesses in a drug trial. There was some potential conflict of interest. If the judge ruled that the ADA couldn’t, Gricar would be there to question the witness. I do not know the case, the ADA, or the alleged conflict. He was not going to be a fact witness.

    The Taj Lee drug case was a multi county drug ring; any single DA could not prosecute it because parts of were outside his jurisdiction. In those cases, the AG’s do it. The case was never in the DA’s Office.

    Smith was not removed by Corbett or anyone else. He filled in as 1st Assistant DA until a new one was sworn. While Madeira was a Deputy DA, that did not give him any jurisdiction over the Centre County DA’s Office. He didn’t even the Republican nomination, which was contested, until about a month after Gricar disappeared. Nobody knew who the next DA would be.

    As a note regarding Smith, at the time Gricar disappeared, it would have been too late for him to have run in the primary. You have to circulate nominating petitions to get your name on the ballot, and the deadline was, I think, March 8 or 9 of 2005; you could have started circulating them was, I think, three weeks before that.

    Smith obviously knew that Gricar wasn’t going to be running for reelection since January of 2004; had he wanted the post, he could have run for it.

  22. J. J in Phila says:

    That should be Madeira was a deputy Attorney General.

  23. J. J in Phila says:

    Blink, a while back, you asked, “Anyone count how many cases Gricar tried where arrests were made prior to presentment?”

    I am unfamiliar with ANY case where Gricar used a grand jury as DA. At one point, he participated in a coroner’s inquest (the Grove case, 1996-7), and used that. In fairness, I have seen no case where his predecessor, Madeira, ever called a grand jury either. Some of the cases that have looked at (Grove, Rosengrats (2004), Phillips (2003))he did NOT use a grand jury.

    The AG’s Office also indicated that there was no prior grand jury. If initiated, it must be approved by a judge and would create a large paper trial in the DA’s Office (and the court), if it was done at the county level.

    For the record, I came out strongly in favor of using a grand jury in the Gricar case in the old “Just Gricar” blog, on 1/5/09, even before the Sandusky case went to the AG’s Office (February 2009).

    You have me at a disadvantage as this posted months ago JJ, I will try to revisit my perspective. Thank You.

  24. J. J in Phila says:

    Sorry, I didn’t know the site was here. :)

    You had asked if it was usual for Gricar to file without a grand jury presentment (I’m paraphrasing). I am not familiar with ANY case where he used a grand jury while he was DA.

    As in the case with Sloane, there was no grand jury.

    There was a time in PA where you could NOT be indited unless it was by a grand jury, IIRC. Sometime prior to me starting college, it was removed from the state constitution.

    Though not required, they are absolutely fantastic investigative tools.

    Agreed JJ

  25. anonymous says:

    I know my post is late but I wanted to clear up something for you. williamson who is known for womanizing and ex parte communication tried to fire Mr. Rosamelia because he turned him in for assaulting the young lady. This judge that you are talking about is nothing but pure evil and he attends a Lock Haven Catholic church and pretends to be more than he really is. he believes he is in vincible. because he has gotten away with so much corruption.

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    {I am|I’m} {extremely|really} {inspired|impressed} {with your|together with your|along with your} writing {talents|skills|abilities} {and also|as {smartly|well|neatly} as} with the {layout|format|structure} {for your|on your|in your|to your} {blog|weblog}. {Is this|Is that this} a paid {subject|topic|subject matter|theme} or did you {customize|modify} it {yourself|your self}? {Either way|Anyway} {stay|keep} up the {nice|excellent} {quality|high quality} writing, {it’s|it is} {rare|uncommon} {to peer|to see|to look} a {nice|great} {blog|weblog} like this one {these days|nowadays|today}..|
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  27. I just came across these postings. With reference to J. Michael Williamson, the Senior Judge of Clinton County, these postings barely scratch the surface of the corruption he and his cronies have been engaging in for nearly two decades. In a nutshell, it is no exaggeration to say that the political machine in this state, especially in the backwaters, would be the envy of the NAZIS and is clearly a “criminal enterprise.” In short, just as our “illustrious” Chief Justice Castille is about to escape into retirement with his “golden parachute”, the shit is FINALLY starting to hit the fan. It’s time to apply the lessons learned from Nuremberg after WW II to Pennsylvania’s judiciary and legislature. There is a cancer eating away at the moral fabric of this Commonwealth and it can be summed up in two words–LUZERNE COUNTY–only one highly visible “rackets” of many over which our recently re-elected and soon to retire chief justice has disciplinary responsibility! Are you beginning to get it yet? Che cosa voi non capisciate?

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