A federal grand jury may soon begin to sort out the FBI's investigation of the Research Institute at Alabama A&M University.
Already, the build-up to that hearing is threatening to upset the young tenure of Odysseus Lanier, as at least one trustee is calling for the newly elected president pro tem of the university's board to resign.
No one has alleged any criminal wrongdoing by Lanier. But Lanier's company, which handles weapon systems, holds a contract through the Research Institute.
And late last month, Kevin Matthews, the recently appointed compliance officer for the Research Institute, wrote to all trustees to contend that the $2 million contract with Lanier's company now presents a conflict of interest.
Lanier wrote back on Nov. 5, ordering Matthews to cease and desist all investigations and turn all documents over to the university's in-house attorney. "You are neither an agent for nor are you authorized to act in any capacity on behalf of the Board of Trustees," Lanier replied.
Matthews wrote back on Nov. 7 that he would not stop, that he was legally obligated to continue to supply documents requested in conjunction with a federal subpoena.
In fact, e-mails provided by one university official show that the FBI warned Matthews on Nov. 9 to continue to turn over institute documents for the grand jury. "Failure to do so will result in potential legal sanctions," wrote an FBI agent in an e-mail to Matthews. The agent asked to have his name withheld from this story.
The Research Institute, an 11-year-old separate corporate entity, serves as the contracting arm of the university, farming out millions of dollars in research work to professors and others on behalf of all manner of clients, including NASA, Boeing and the U.S. Army.
By virtue of being elected president pro tem of the university board of trustees on Oct. 29, Lanier automatically earned a seat on the separate seven-member board that governs the institute.
Now trustee James Montgomery said the university can no longer wait for the grand jury. He called for an end to Lanier's leadership immediately. "I think he needs to resign from the board," Montgomery said, arguing that Lanier had attempted to "muzzle" the internal investigation without consulting his fellow trustees.
This week, Matthews told The Times: "Trustee Lanier cannot circumvent me reviewing his contract because he is president pro tem of the board."
But Lanier in one e-mail referred to Matthew's investigation as "laughable assertions" with no basis in fact.
This week, Lanier told The Times that Matthews does not understand business documents. "There's nothing to what he's talking about," Lanier said. "I understand not having a pecuniary interest in an organization you are providing governance for."
"I think to even have to deal with this is ridiculous." He said that his company, McConnell Jones Lanier & Murphy, handles weapon systems and logistics. He said the company concluded a three-year contract through the Research Institute in 2009, well before he joined the institute board.
But Matthews told The Times that the contract isn't officially concluded until all issues are resolved, and he said payment is not complete. A pair of invoices for flexible engine diagnostic system show Lanier's company receiving $30,000 and $15,000 earlier this year.
Some payments are outstanding, Lanier said. "We have collected from the Research Institute 92 percent of the dollars." Montgomery said, to him, that constitutes continuing involvement with the Research Institute and a conflict of interest for Lanier as a board member. "I don't think he can lead the board because of the questions that were raised about his involvement with the Research Institute," said Montgomery, adding at one point: "There are still outstanding invoices right now to his company."
Matthews, who for years had identified himself as freelance false claims officer, was suddenly employed as compliance officer at the institute on June 21. He now earns $100,000 a year.
Former president of the board of trustees, Shefton Riggins, on Sept. 1 wrote to order Matthews to investigate "any and all entities associated with" the Research Institute. Matthews was directed to report directly to Riggins, trustee Tom Bell or university President Dr. Andrew Hugine.
Riggins, a heart surgeon, has since stepped down as a university trustee. But he continues to serve on the governing board of the institute, which, according to tax documents, handled $5 million in contracts in 2009.
Montgomery said Riggins was wrong to direct Matthews without consulting the board of trustees. And he said Lanier was equally wrong to order Matthews to stop his investigation without consulting the board. The year has been eventful at the Research Institute. The small governing board on June 14 held a private meeting and fired the man who had helped found the institute, physicist and longtime director Dr. Daryush Ila. He was replaced with Dr. Tommy Coleman, who has a background in plant and soil science.
Coleman hired Matthews. The board then replaced Coleman with Dr. Deidra Willis-Gopher, a former teacher, who promoted Matthews. Several other employees were fired or removed. Some university officials contend that no more than one person with a science background remains among the roughly 10 institute employees.
Annary Cheatham served as the Research Institute attorney for about 15 days this summer. She has said that Matthews, who has no administrative or law enforcement experience, is not qualified for his position and has investigated through intimidation.
But Matthews, in a letter to the board of trustees this month, has accused Cheatham of illegally accessing classified Army documents at the institute. And Matthews filed reports with A&M police against Cheatham, reports he sent to the trustees.
Matthews' interactions have not been limited to any one area of campus. For example, Matthew Edwards, dean of the school of arts and sciences, on Nov. 8 issued an official memo banning Matthews' entry to the dean's inner office.
Meanwhile, the contracts have begun to dry up. In September, the National Science Foundation suspended its support, citing poor reporting and "lack of scientific progress."
Matthews said that he expects a full audit of all institute contracts. He said the only issue with Lanier is conflict of interest. "But there are elements of criminal activity elsewhere," he said. He would not elaborate. When asked if he had been subpoenaed, Matthews said: "I can't comment about that."
Montgomery told The Times he expected a broad inquiry by the grand jury: "I know quite a bit of it is involving the Research Institute, but those tentacles may go out into many different areas." Lanier told The Times he was asking for patience among trustees. "We have to let this FBI investigation play out. The board will make some decisions once that investigation plays out."
In one e-mail, Matthews accuses Lanier of "obstruction of justice," asserting that Lanier has no authority "to override the demand of the federal agent for three documents requested by the federal Grand Jury subpoena. "If you have done nothing wrong you should have nothing to fear," Matthews wrote. Lanier sent the e-mail to the board attorney, Rod Steakley, writing that "I am not going to respond to this stuff because it is factually inaccurate." The e-mail was copied to all board members.
Montgomery, however, replied to everyone that Lanier couldn't use the board attorney to handle complaints involving his company. "I can afford to pay my own lawyers should I need them," responded Lanier in an e-mail, "which I seriously doubt I will."
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Source: Challen Stephens, The Huntsville Times
