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 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.

Santa Ana, CA– Michelle Braun Kellener, facing indictment on Federal Charges for an alleged 8.5 Million dollar prostitution business is prepared to be a stoolie.  After an 18 month FBI investigation, which Braun claims she was aware of,  proceedings kicked off in court yesterday after filing a plea deal on March 31^st. Braun’s attorney told reporters yesterday her Client “ran an investment fund”. Here we go again. It begs the question– is Michelle Braun the Madoff of Madams?

Both Braun and her husband, Farrell Kellener, were arrested on drug charges in October 2007 while Palm Beach Police were assisting the FBI on serving a warrant for suspicion on the very charges she is predicted to ultimately plead guilty. In a post on her defunked my space, Braun claimed to “know from day one” the Feds were investigating her.

Ellen S Garofolo represented her client in court yesterday and sources inside the investigation say is the driving force behind both her plea deal, and ability to stay out of jail. For now, at least. The judge will ultimately have the ability to reject the plea bargain on the table, which currently includes Z E R O jail time.

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Orlando, FL– In the latest of what seems to be a mounting stockpile of concerns regarding tot mom defense attorney Jose Baez and a member of the defense team, Todd Macaluso, The Orlando Sentinel released the latest bombshell: The Florida Bar DENIED BAEZ ADMISSION the first time around. 

Jose Angel Baez, currently under investigation by the Florida Bar Association (FBA) in a minimum of 3 separate inquiries was denied admission to the Florida Bar following his initial application in 1999. This information is in stark contrast with an interview given by Baez below where he states (paraphrase) he made a monetary and travel decision to wait 8 years for FBA membership.

Baez appealed the decision of the FBA to the Florida Supreme Court, which governs the Florida Bar. In their decision, they agreed with the FBA, issuing an order in 2000 that cataloged unpaid bills, extravagant spending and other “financial irresponsibility” up to that time. Justices reserved their strongest condemnation for his failure to stay current on support payments for his only child.

His overall behavior, they wrote, showed “a total lack of respect for the rights of others and a total lack of respect for the legal system, which is absolutely inconsistent with the character and fitness qualities required of those seeking to be afforded the highest position of trust and confidence recognized by our system of law.”

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Orlando, Fl– Recently reported exclusively on Blinkoncrime.com, new Attorney for the tot mom’s defense team, Todd Macaluso, who was introduced to Judge Stan Strickland prior to filing his pro hac vice before the court during a motion hearing on March 3, 2009, may be out.

Is Macaluso the Madoff of law?

He blazed the interview circuit in Orlando declaring Casey Anthony’s innocence and went so far as to say she should not be in jail awaiting trail and the defense was looking into seeking another bond hearing. 

Mr. Macaluso is currently undergoing disciplinary charges brought forth by the California Bar. The 10 page initiating document outlining the charges was filed January 23, 2009.

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