A former University of Memphis assistant athletic director admitted to embezzling $75,000 in donations from The U of M. In federal court Wednesday, before Judge J. Daniel Breen, Kevin Grothe testified that he took $50,000 and $25,000 between Jan. 31 and March 1, 2003.
Grothe, 41, was indicted on three counts of embezzlement in August.Adding to what Grothe's attorney called "cooperation with investigators and U of M officials," Grothe entered a guilty plea Wednesday on two of the charges against him. The third count was dismissed.
Grothe resigned from his position on Feb. 27, 2004 after an internal Tennessee Board of Regents' audit indicated that Grothe approached U of M boosters and asked them to forward money to marketing contractors.
The false agencies that Grothe solicited money for allowed him to embezzle money from The U of M.
Grothe testified Wednesday that he took the money for personal uses, including up to a $25,000 payment on credit card bills.
In one instance, Grothe told investigators that he had a donor write a $25,000 check to NIDA. Grothe told the booster that NIDA was an agency and that The University owed them money.
NIDA was actually Grothe's brother-in-law's last name. Unaware of the improprieties, Grothe's sister and brother-in-law, who live in Ohio, cashed the check and gave him the money, said Asst. U.S. attorney Larry Laurenzi in court.
"Kevin is a good guy who made a bad decision," said Scott Forman, president of the Highland Hundred, a U of M football booster club. "He's willing to pay the price for this mistake and get on with his life."
All calls to The University athletic department were directed to Curt Guenther, U of M director of communications.
"The University has issued no statement about the continued resolution of this matter, and I'm not sure when or if we will," Guenther said.
As reported in The Commercial Appeal, James Garts Jr., Grothe's attorney, said Grothe has paid back some of the money and will continue to pay on the $50,710 he owes The University of Memphis.
Sentencing for Grothe is scheduled for Jan. 12 and he could face up to 10 years in prison and $250,000 in fines for each count.
While at The U of M, Grothe oversaw athletic fundraising through The University of Memphis Tiger Clubs and donations to the fund steadily increased during his eight years at The U of M. Tiger Clubs raised some $4.6 million in the last fiscal year that ended June 30.
