By Elise Christenson
A former BYU employee in the student financial services area has been arraigned on suspicion of stealing an undisclosed amount of money from the university and students.
John Shepard Davis, a former BYU special collections officer, appeared June 21 in 4th District Court in front of Judge James R. Taylor on seven counts of theft, a second degree felony.
The Provo resident and his wife, Carol Bitner Davis, face charges of racketeering, which is a second degree felony for a pattern of unlawful activity. Carol Davis also faces five counts of theft.
“John Davis was placed on administrative leave when BYU auditors began a review,” said Carri Jenkins, assistant to the president for university communications. “His employment was terminated due to what BYU auditors believe is the theft of university funds.”
John Davis was placed on paid administrative leave May 23, 2001, when someone reported irregularities in the finances of his department, Jenkins said. Information about the person who reported the irregularities, whether it was a BYU employee or student, has not been released.
“We do have periodic audits, but this review was done out of concern for financial irregularities,” Jenkins said.
David Wayment, the prosecuting attorney, declined to comment on the investigation.
Because it is a pending legal matter, BYU is not disclosing details from the review or discussing specific dollar amounts.
However, court records state that John and Carol Davis are collectively accused of 12 counts of theft, with each count valuing or exceeding $5,000, for a total of at least $60,000.
The alleged thefts began on or around June 1, 1999, and continued until about Aug. 25, 2000, according to court records.
Most of the funds involved are university funds from student financial services. A small percentage of the total funds came from student accounts John Davis had worked with, Jenkins said.
One percent of the student accounts John Davis handled during a three-year period were affected, Jenkins said. That one percent comprises 779 accounts.
“BYU has made every effort to identify student accounts that were affected,” Jenkins said. “Every effort has been made to issue a credit or a refund to those students where applicable.”
Theft from the student accounts comprised a small percentage of the overall theft from the university, Jenkins said.
John Davis was terminated from his position at the university July 19, 2001, Jenkins said. The university had employed him for 10 years.
John Davis declined to comment on the case, stating that he was on retirement status at the university. His attorney, Craig Snyder, was unavailable for comment.
According to court documents, John Davis is 59 years old. Because of his age, federal law mandates that he is able to draw upon retirement funds, Jenkins said.
She said that a few weeks after BYU began an intensive investigation on May 23, 2001, BYU legal counsel reported the findings to the Utah County Attorney”s office.
BYU and the county attorney”s office conducted separate investigations. BYU provided information requested by the county attorney”s office, Jenkins said.
John and Carol Davis were never arrested, but were served with a summons by the County Attorney”s office. A preliminary hearing is scheduled for Aug. 28 in 4th District court.
Kay Bryson, county attorney, said if the allegedly stolen money was federally backed, it could be a federal offense. He would not comment on whether the FBI was involved or any other details from the case.
At this point, the university has not taken further action with a civil suit, Jenkins said.
