4 Chico State employees placed on leave following fraud investigation

Four Chico State employees have been placed on leave due to an ongoing fraud investigation, according to the University's President, Gayle Hutchinson.

Posted: Dec 23, 2020 3:38 PM
Updated: Dec 24, 2020 4:58 PM

CHICO, Calif. - Four Chico State employees have been placed on leave today due to an ongoing fraud investigation, according to the University's President, Gayle Hutchinson.

In a letter published by President Hutchinson on Dec. 23, an investigation uncovered numerous acts of financial and professional misconduct in Chico State's Department of Accounting.

"According to the investigation, these acts of fraud, abuse, and other ethical lapses occurred between 2014 and 2019, resulting in approximately $1 million of inappropriate compensation and other financial losses to the university," said Hutchinson.

"Based on the findings of the investigation, today we placed four employees on leave, pending final disciplinary action," said Hutchinson in a letter. "Each of these employees has privacy rights and due process rights to appeal any discipline. We also have referred the matter to the appropriate authorities to investigate potential criminal conduct and will be seeking any restitution to which the University may be entitled."

Hutchinson added, "I am personally outraged that a few individuals have abused the trust placed in them by students, taxpayers, and donors for their personal benefit."

Lastly, Hutchinson said they have identified numerous corrective actions to strengthen the University's systems and processes. She says she will be working to ensure they are fully implemented throughout the university.

This is a developing story. Action News Now will keep you updated with new information on-air and online.

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Strong wind continues to blow through the valley this afternoon, and will last through the evening. Thursday will still be a fairly breezy day, but the wind won't be as strong and our temperatures will be warmer. More wind is coming Friday and Saturday.
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