Website Owned By “Gary Financial” Suddenly Disappears From Cyberspace

EDITED TO ADD: THE WEBSITE FOR GARY FINANCIAL HAS RESURFACED SINCE PUBLISHING THIS STORY

CONFLICT OF INTEREST – A conflict of interest (COI) occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other.

Apparently, Willie Gary’s version of the Webster’s Dictionary is slightly different than the rest of us.

Behind closed doors throughout recent years, Willie Gary, the Chairman of the Board of Trustees for Shaw University has been under scrutiny for questionable dealings with his brother’s insurance company, “Gary Financial” and Shaw University. Gary has been questioned about this obvious conflict of interest by alumni, alumni chapter presidents as well as other members of the board for several years. Concerns from alumni regarding this obvious conflict of interest was quietly swept under the rug last year when the National Alumni Association called for Gary’s resignation. A portion of this letter addressed to the Board of Trustees read:

“We have serious concerns regarding conflict of interest, fiduciary responsibilities, adverse interest and commitment.”

Then on April 16, 2011 – after a tornado swept through campus causing significant damage to various buildings, what was once a moot issue, again became a serious concern as many external constituents (once again) had many questions regarding Shaw’s 254 million dollar insurance policy and its policy holder.

Willie Gary and Shaw’s embattled former President, Irma McClaurin appeared on various media outlets, insisting that Shaw’s insurance “would not be enough to cover Shaw’s damages”.

It has been nearly 5 months since the tornado, and Shaw University has not released one single CONSISTENT statement regarding a specific dollar amount regarding damage. One report claimed that Shaw had 3 million dollars worth of damage while another WRAL news report claimed as much as 30 million dollars. The university has also opted not to update the public (specifically alumni) on ANY PROGRESS with regards to its fundraising efforts. Will they ever clarify their fundraising goals? Exactly how much money has been raised thus far? How have the funds been used thus far? Has Gary Financial covered ANY of the tornado damage? If not, why not? How much money is Shaw seeking from donors? What is the strategic plan?

It is baffling that an institution that has had such a horrible reputation for integrity still chooses to operate in the dark. The real tragedy isn’t Gary’s questionable dealings – but for a group of people to bury their heads in the sand when an outright conflict of interest is taking place. When will the madness cease?

Here are a few excerpt from various news publications regarding Willie Gary’s brother’s insurance company:

The Wilmington Journal

Freddie Gary, who owns an insurance agency in Florida that has been doing business with the university for years.

“He has saved Shaw University thousands, and hundreds of thousands of dollars. And if you check his giving, he has given back the money he’s made in premiums in record numbers,” Gary insisted.

“A conflict of interest means you failed to disclose something,” the chairman continued. “My brother has been writing that insurance now for ten or fifteen years. He’s been giving to Shaw for ten or fifteen years. He’s been saving Shaw money for ten or fifteen years.”

“How are you going to have a conflict of interest with someone who is saving the university tons of dollars?” Gary continued. “Are you saying that because he is a black man that he shouldn’t be doing business with Shaw University?”

The Chronicle

His business dealings have also been questioned. The campus’s insurance policy, for instance, is taken out with Gary Insurance Agency & Associates, a company whose chief executive, Freddie L. Gary Sr., is Mr. Gary’s brother.

“In my time on the board, that was never raised as a problem,” says Mr. Adams, who resigned from the board in July because, he says, he felt the board was not acting ethically in its financial dealings, including the insurance deal. “It’s an incredible conflict of interest.”

Mr. Gary says that he has always been open about his connection to the insurance agency and that it was chosen simply because it provided the best rate.

“Let me be clear: If you have business dealings with family, you must disclose it so it can be reviewed,” he says. “I did that, and he is saving this school money.”