The University of Georgia's former alumni director likely committed crimes, according to a letter from the attorney general's office, but the school's mishandling of the investigation will keep her from facing formal criminal charges.
"In my opinion at least some of Ms. Dietzler's activities likely constituted criminal conduct that warranted further investigation and possible prosecution," wrote Senior Assistant Attorney General David McLaughlin in a letter to the Board of Regents this week.
Deborah Dietzler served as director of UGA's Alumni Association from 2005 through 2014 when the university's fraud committee decided not to renew her contract following an internal audit, which documented misspending.
However, the university failed to report Dietzler's conduct to the state.
"Because of that failure, a timely criminal investigation was prevented," wrote McLaughlin.
In November, Channel 2 Action News investigative reporter Jodie Fleischer exposed records showing questionable travel expenses and timesheets brought forth by a whistleblower who worked under Dietzler.
"I'm a CPA, and I had a fiduciary duty to report fraud," Sallyanne Barrow told Fleischer and provided extensive records which she had also reported to the university's auditor.
Dietzler's former assistant shared Barrow's concerns regarding paperwork submitted for reimbursements.
"Often times, I had to fabricate this information, just to justify it," Scott Kinney told Fleischer.
McLaughlin's letter cited two examples featured in the Channel 2 investigation, calling them the "most egregious."
Dietzler flew to California to run in a marathon and billed taxpayers even though she had no alumni business there.
McLaughlin noted Dietzler submitted a written statement that she was there for alumni-related business, which he characterized as an apparent false statement in violation of Georgia law.
He also cited Georgia's theft by taking statute noting, "Ms. Dietzler billed UGA and received reimbursement for expenses which were wholly and undeniably personal."
Dietzler also cancelled a cheaper room at a conference hotel in Philadelphia and booked a more expensive one to get reward points.
McLaughlin wrote, "Ms. Dietzler's hotel stay could also constitute theft by taking, as Ms. Dietzler caused UGA to spend more money on her hotel so she could personally profit."
But McLaughlin added that he does not believe a criminal prosecution is feasible, in part because UGA's police chief and the head of its fraud committee both failed to initiate criminal investigation after being made aware of the details.
"They messed up so much the attorney general says crimes were committed, but because of you, UGA, 'we can't prosecute.' That's inexcusable," said Georgia Ethics Watchdogs Director William Perry, who once served on UGA's alumni board.
Perry is disappointed with McLaughlin's decision not to prosecute, and thinks UGA should audit all alumni association expenses for the last five years.
He'd also like the attorney general to look at others who had similar spending.
"I'm beyond outraged. I'm completely embarrassed as a University of Georgia graduate and as a citizen of this state," said Perry.
McLaughlin's letter also singled out former UGA Vice President Tom Landrum, who defended his actions in a Channel 2 interview last fall.
When the fraud committee chose not to renew Dietzler's contract, Landrum let her keep working at the same salary, then apparently got her her next job at the University of Louisville.
"When your former vice president of development helps somebody he knows committed criminal acts get another job at another university, it's beyond sad. It's just disgusting," said Perry.
Last fall, Fleischer traveled to Louisville to attempt to ask Dietzler about her spending while at UGA, Dietzler declined to answer any questions but resigned from her job with University of Louisville just days after the Channel 2 report aired.
In a written statement, the University System of Georgia said it takes the attorney general's findings very seriously, and that UGA has already strengthened its procedures.
"Going forward, we are confident we will have proper reporting and investigative procedures across all of our institutions," said USG spokesman Charles Sutlive.
Sutlive declined to comment on how the attorney general's findings could undermine a legal strategy recently attempted by the university system.
Barrow is suing the Board of Regents since UGA fired her about a year after she reported Dietzler's activities.
In January, an attorney representing USG attacked the language used in Barrow's complaint, specifically her reference to Dietzler being "a criminal and a thief," by saying there had been no finding of such.
McLaughlin's assessment, requested by USG, appears to contradict that.
