Academic

TAX AND ACCOUNTING PROBLEMS AT HARVARD? Harvard Management Company?which oversees Harvard?s m?

By Glenn Reynolds

TAX AND ACCOUNTING PROBLEMS AT HARVARD?

Harvard Management Company?which oversees Harvard?s multi-billion dollar endowment?was plagued by a culture of ethical laxity, Rose said. Special relationships with funds run by former employees and the use of offshore investment companies?both used to boost HMC?s once-legendary returns?may not be illegal, but are considered to be ethically questionable by some, particularly in light of Harvard?s non-profit status. . . . After his resignation, Rose said his concerns only deepened, fueled in part by Enron?s high-profile implosion due to unethical accounting practices?including the liberal use of offshore accounts. He says he noticed disturbing similarities in Enron?s and HMC?s investment strategies, which prompted him to file a disclosure in early 2002 detailing his concerns with the Internal Revenue Service and the U.S. Senate Finance Committee.

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Full post as published by Instapundit.com on April 24, 2009 (boomark / email).