A former Baruch College basketball coach and athletic department official was busted Tuesday for pocketing more than half million dollars that should have gone to the college for rentals of its athletic facilities, authorities said.
Machli Joseph, who served as a women’s basketball coach for 10 years and an assistant athletics director from 2002 through 2016, was charged with one count of embezzlement, said Manhattan U. S. Attorney Preet Bharara and state Inspector General Catherine Leahy Scott.
Baruch rented out its gym to outside parties when it was not used by its athletic teams.
Officials said Joseph, 42, had sole control over the rentals and schedules.
On numerous occasions between 2010 and 2016, Joseph rented the gym to individuals and groups, with the money intended to go into Baruch’s coffers.
But Joseph directed the payments be made to bank accounts over which he had personal control, authorities said.
On several occasions, Joseph even directed that payment be made directly to himself or associates of his, according to the charges.
Many of these funds were ultimately spent on personal expenses, including renovations to Joseph’s home in Elizabeth, N.J., officials said.
All told, the scheme improperly diverted approximately $600,000, the criminal complaint said.
“Embezzling money from a public college is no game, and for allegedly taking criminal advantage of his control over Baruch’s basketball courts, Joseph will now face federal charges in a court of law,” Bharara said.
Joseph has been charged with one count of embezzlement and misapplication concerning a program receiving federal funds, which is how Bharara got involved.
The charge carries a maximum term of 10 years in prison.
Baruch College president Mitchell Wallerstein issued a statement saying the college was cooperating with authorities and had changed its practices:
“Today, the U.S. Attorney for the Southern District of New York arrested a former Baruch College employee, Machli Joseph, on charges of embezzlement. While employed at the College, it is alleged that he diverted approximately $600,000 in funds that were intended for the College. I am disturbed by this betrayal of trust, and will take further steps to improve oversight.
“We are disappointed that an employee would allegedly perpetrate a criminal theft of financial resources that are so critical to our students’ success. We support the U.S. Attorney’s intention to prosecute this case to the full extent allowed by law.
“Baruch has cooperated with the New York State Inspector General’s investigation that led to the charges from the U.S. Attorney’s office. We appreciate the diligence that led to the discovery of this malfeasance, and we intend to continue to offer our cooperation.
“Mr. Joseph was employed by the Baruch Athletics department between 2002 and 2016, first as Women’s Basketball Coach and later as Assistant Athletics Director. Beginning in 2015, Baruch started a significant reorganization of the Athletics department to improve its monitoring, control and rules of enforcement. Among the changes that have been made:
- Revamped the role of Athletics Director. The revised position has substantially more responsibility to assure compliance by coaches and other staff with external and internal rules and procedures.
- As part of these efforts, Mr. Joseph was moved from the Athletics Department in November 2015, and he resigned from the College in October of 2016.
- Appointed a new Faculty Athletics Representative who is an authority on sports law.
- Established an Athletics Compliance Team with oversight regarding all of Baruch’s athletic programs and compliance under the leadership of the College’s legal counsel.
“Baruch will continue to cooperate with all investigative and law enforcement agencies regarding this matter, which violates all of our standards and values.”