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Education Dept. Levies $4.5-Million Fine Against Michigan State Over Nassar Scandal

By  Katherine Mangan
September 5, 2019
The U.S. Department of Education fined Michigan State University a record $4.5 million for violations of the federal campus-crime law known as the Clery Act. The department levied the penalty over lapses related to Larry Nassar, the former Michigan State doctor who was convicted of sexually abusing women and young girls.
Jeff Kowalsky, AFP, AP Images
The U.S. Department of Education fined Michigan State University a record $4.5 million for violations of the federal campus-crime law known as the Clery Act. The department levied the penalty over lapses related to Larry Nassar, the former Michigan State doctor who was convicted of sexually abusing women and young girls.

The Department of Education has levied a $4.5-million fine against Michigan State University — the largest such penalty ever — for failing to comply with campus-safety regulations in its handling of the Larry Nassar scandal. Nassar, a former team doctor who was accused of sexually assaulting hundreds of women and girls during his decades at the institution, is serving a long prison term after pleading guilty to some of those charges.

Shortly after that announcement, the university’s president, Samuel L. Stanley Jr., released a statement saying the institution’s provost, June P. Youatt, has resigned. The Education Department had criticized her for failing to take action against William Strampel, a former dean and Nassar’s longtime boss.

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The U.S. Department of Education fined Michigan State University a record $4.5 million for violations of the federal campus-crime law known as the Clery Act. The department levied the penalty over lapses related to Larry Nassar, the former Michigan State doctor who was convicted of sexually abusing women and young girls.
Jeff Kowalsky, AFP, AP Images
The U.S. Department of Education fined Michigan State University a record $4.5 million for violations of the federal campus-crime law known as the Clery Act. The department levied the penalty over lapses related to Larry Nassar, the former Michigan State doctor who was convicted of sexually abusing women and young girls.

The Department of Education has levied a $4.5-million fine against Michigan State University — the largest such penalty ever — for failing to comply with campus-safety regulations in its handling of the Larry Nassar scandal. Nassar, a former team doctor who was accused of sexually assaulting hundreds of women and girls during his decades at the institution, is serving a long prison term after pleading guilty to some of those charges.

Shortly after that announcement, the university’s president, Samuel L. Stanley Jr., released a statement saying the institution’s provost, June P. Youatt, has resigned. The Education Department had criticized her for failing to take action against William Strampel, a former dean and Nassar’s longtime boss.

Three former university officials — Lou Anna K. Simon, the former president; Kathie Klages, a former gymnastics coach, and Strampel — have been criminally charged for their roles in the scandal.

“What happened at Michigan State was abhorrent,” Betsy DeVos, education secretary, said in a press call on Thursday. The crimes committed by Nassar and Strampel, she said, were “disgusting and unimaginable” and “so too was the university’s response” to the crimes. “This must not happen again.”

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The Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, known as the Clery Act, requires all institutions receiving federal funds to report and publicize certain crime statistics and policies.

“Too many people in power knew about the complaints, yet the predators remained on the payroll,” DeVos said.

Previously, the largest penalty levied for Clery Act violations was the $2.4-million fine against Pennsylvania State University in the aftermath of the Jerry Sandusky child-abuse scandal.

In the settlement agreement announced on Thursday, Michigan State waived its right to appeal the $4.5 million fine.

Three victims of Larry Nassar — Kaylee Lorincz, Rachael Denhollander, and Lindsey Lemke — spoke in Lansing, Mich., in November 2017. Testimony by them and others at his sentencing hearing, in January 2018, undermined support for Michigan State’s president, Lou Anna K. Simon.
The Nassar Scandal and the Crisis of Michigan State’s President
Within a year the university lost two chief executives — Lou Anna K. Simon, sank by the scathing, heart-rending testimony of the sports doctor’s scores of victims, and John M. Engler, whose interim presidency ended amid a backlash over his bare-knuckled tactics.
  • With Criminal Charges Dismissed Against Michigan State’s Ex-President, Sex-Abuse Accountability Hits Skids Again
  • Michigan State’s Ex-President, Who Faces Criminal Charges, Will Retire With a $2.5-Million Payout
  • At Michigan State, a Disruptive Presidency That Few Could Muster the Will to End

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In a separate investigation into the handling of the abuse complaints, the department’s Office for Civil Rights concluded that MSU’s Title IX procedures are “broken and must be fixed immediately,” DeVos said. The department found that the university failed to take “appropriate interim measures” to protect students while Nassar and Strampel were under investigation.

The university voluntarily signed a resolution agreement detailing steps it will take to strengthen its procedures for investigating and reporting such complaints. A process is also being created for Nassar’s victims to seek remedies including counseling, grade adjustments, and the opportunity to retake classes, department officials said.

Stanley said he has formed a new oversight committee charged with ensuring that the university responds fully to the department’s findings.

The department found, he said, “that the provost and former president failed to take appropriate action on behalf of the university to address reports of inappropriate behavior and conduct,” specifically related to Strampel. “In my effort to build a safe and caring campus, we must have a culture of accountability.”

“I’m grateful for the thoroughness of these investigations and intend to use them as a blueprint for action,” Stanley said. “Included is a review of current and former employees who had received notice or complaints of sex discrimination and failed to take appropriate steps. We will conduct this review, and once completed, if further personnel actions are needed, we are prepared to take them.”

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John C. Manly, the lawyer representing most of the women who sued Michigan State over the Nassar scandal, tweeted out his dissatisfaction with the settlement and called on trustees to resign.

4.5 mill is not a punishment for knowingly allowing little girls to be molested. It’s a gift. The D of Ed could have sent a message. Instead they impose a 4.5 mil penalty on a multi-billion dollar institution. At 500 victims MSU has to pay only 9k per child. A new low for Devos. https://t.co/R9p4eO64a1

— john manly (@johnmanly) September 5, 2019

Katherine Mangan writes about community colleges, completion efforts, and job training, as well as other topics in daily news. Follow her on Twitter @KatherineMangan, or email her at katherine.mangan@chronicle.com.

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Leadership & GovernanceLaw & PolicyFinance & OperationsPolitical Influence & Activism
Katherine Mangan
Katherine Mangan writes about community colleges, completion efforts, student success, and job training, as well as free speech and other topics in daily news. Follow her on Twitter @KatherineMangan, or email her at katherine.mangan@chronicle.com.
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