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Texas State U. Cuts Ties with Donor

April 22, 2008, 1:16 pm

After a series of scandals at the Roy F. and Joann Cole Mitte Foundation, Texas State University at San Marcos announced that it will cut ties with the donor, reports The Austin American-Statesman.

Texas State University has received more than $9-million since 1997 from the Mitte foundation.

The university’s decision comes as Michael Scott Mitte, the grant maker’s executive director and the son of its founders, faces charges of cocaine possession.

Mr. Mitte, who goes by his middle name, had previously settled four sexual-harassment cases brought by women who were either employees of the foundation or a subsidiary of the insurance company, Austin Insurer Financial Industries, which his father founded.

Additionally, Roy Mitte, now deceased, was fired by his company in 2002 after an audit revealed that he had channeled company money into the family foundation without permission.

“I think what we’ve witnessed is a steady degradation of the foundation’s integrity over the last several years,” said Mark Hendricks, a university spokesman.

The university will return an $800,000 endowment for an honors program to the foundation and plans to use its own money to finance scholarship students and faculty members currently supported through aid from the Mitte foundation.

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