Feds: Couple spent $1.5M from Lehigh U. frats on flashy clothes, cruise
A Quakertown couple fleeced Lehigh University fraternities and sororities and their alumni associations out of nearly $1.5 million meant to pay for upkeep and food services at their Greek houses, federal prosecutors said Thursday.
A Quakertown couple fleeced Lehigh University fraternities and sororities and their alumni associations out of nearly $1.5 million meant to pay for upkeep and food services at their Greek houses, federal prosecutors said Thursday.
Instead, Albert and Betty Fisher drew large salaries from the funds the groups paid into their company, Bethlehem-based Fraternity Management Association, and used student funds to pay for their personal credit card bills, clothes at high-end department stores, and travel, including an $8,000 cruise.
Albert Fisher, 76, was indicted Thursday on counts of conspiracy and wire fraud. Prosecutors also allege he failed to pay taxes on nearly $614,398 he stole from his victims.
His attorney George Heitczman did not return calls for comment.
Although court filings in her husband's case describe her as an active participant in her husband's alleged scheme and as executive director of company, Betty Fisher took her own life in February after her husband was implicated in the fraud. She is identified only as "Person 1" in the indictment.
Fraternity Management Association offered financial management services to 13 Greek chapters on Lehigh's campus. It abruptly shut down in 2014, claiming insolvency, leaving its more than 800 student clients in the lurch.
The affected fraternities and sororities were forced to lay off chefs and other staff members who had worked at their chapter houses for decades. In some cases, fraternity alumni associations ran fund-raising campaigns to ensure that the houses could remain open after losing the money needed to run them.
In all, prosecutors said, clients of Fraternity Management Association paid an additional $990,157 to cover expenses that should have been covered by the money they paid to the Fishers' firm.
A spokesman for Lehigh declined to comment on the case.
215-854-2608 @jeremyrroebuck Staff writer Susan Snyder contributed to this article.