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?
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 www.blinkoncrime.com 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?
www.blinkoncrime.com poster erose contributed to the research of this article.