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Missing Money Troubles Hong Kong Club

Harvard Club faces audit over donation mishap

In early December 1997, a Hong Kong donor realized that a check for about $385,000 that he intended for University use hadn't made its way across the Pacific.

The donor, who University officials refused to name, had written the check in December 1996 to the Harvard Club of Hong Kong expecting that the money be turned over to the University.

But the University didn't receive it until March of this year, three months after officials began investigating the club. At that time, former club president Steven Chick delivered a check to Harvard for $423,000, according to current club President Aaron Tan.

What happened to the money during the intervening 16 months, whether other funds are missing and who might be behind this confusion are questions currently being investigated in an Ernst and Young audit.

From Kandinsky to Velasquez

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Club members hope the auditors will answers these questions, but, in the meantime, some of them say their former president, who was ousted from the club's top post in emergency elections on March 5, could provide some answers.

Chick, who The Crimson telephoned a half dozen times over two weeks for this story, could not be reached for comment, but numerous club officials confirmed recent events.

When the University learned of the missing donation, officials attempted to contact Chick but were unable to reach him for several weeks, Tan said. In late January 1998, they notified the club's executive committee of the missing donation.

When Chick was finally reached, club officials said he refused to surrender club assets, including the only complete membership list, various financial records and the sole key to the club's post office box, where bank statements are sent.

In March, around the time he wrote a check to the University for $423,000, Chick finally turned over the club's financial documents to Ernst and Young. In April, he turned over the membership list.

On April 18, the club held official electionswhich placed Tan in the top spot and made GeorgiaBush treasurer. Eighty members voted in theelection, according to the club newsletter.

Bush said in a statement to members after theelection that she hopes "to make the Harvard Club[financial] accounts look less like a Kandinskyand more like a Velasquez."

University officials said the audit should becompleted by the end of this month, but it has notyet been decided whether it will be made public.

Sources of Some Confusion

Like the nearly 160 other Harvard clubs in thiscountry and around the world, the Harvard Club ofHong Kong serves mainly as a social stompingground for Harvard grads living in the now-Chinesespecial administrative region.

The Harvard Club of Hong Kong, like a few otherHarvard clubs, had a special interest in raisingfunds for financial aid and consequently set upthe Harvard Club Foundation in November 1995.Until recently, Chick was concurrently presidentof the club and a member of the foundation's boardof trustees.

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