In This Issue|
Who's Doing What
Office of University Relations
3141 Chestnut St.
Main Building 310
Philadelphia, PA 19104
Pa. Attorney General Returns $12.4 Million to Drexel Med Endowment
Pennsylvania Attorney General Mike Fisher presented a check to President Papadakis and College of Medicine board chairman Manuel Stamatakis for $12.4 million to replenish charitable endowments that were raided when the former Allegheny Health Education and Research Foundation (AHERF) became insolvent and eventually went bankrupt. The check was presented in the Westphal Picture Gallery on April 15.
In February 2000, Fisher’s office, Tenet HealthSystem Philadelphia and two charitable organizations filed a court complaint seeking the return of $78.5 million in charitable assets. In January 2002, the case was settled and Fisher’s office was able to recover nearly $23 million for distribution to three non-profit foundations, Philadelphia Health and Education Corporation (PHEC, doing business as Drexel University College of Medicine), Philadelphia Health and Research Corporation (PHERC, doing business as Franklin Health Trust) and West Penn Allegheny Health System. The $12.4 million check will go to the endowments held by PHEC and will be used for the Drexel University College of Medicine.
On March 25, 2003, Judge Joseph D. O’Keefe of Philadelphia Orphans’ Court signed an order announcing that PHEC and Franklin Health Trust had resolved all disputes as required by the court before the PHEC funds could be distributed. The judge added that PHEC would distribute the $12.4 million on a pro rata basis to the individual endowments. The remaining $7.2 million will be distributed to the Franklin Health Trust once the final settlement is approved by the judge. Another $3 million in settlement funds will be distributed among the charities over the next three years.