Now-defunct Lon Morris College suing former president, board mem - MSNewsNow.com - Jackson, MS

Now-defunct Lon Morris College suing former president, board members

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JACKSONVILLE, TX (KLTV) -

A now-defunct East Texas college is involved in a lawsuit.

According to a lawsuit filed in federal bankruptcy court, Lon Morris College is suing its former president, Dr. Miles McCall, and nine members of various boards and committees.

In the lawsuit, the college demands damages in excess of $20 million.

The suit claims that Miles McCall's "grossly negligent conduct, unauthorized actions, and nondisclosures" contributed to millions of dollars in damages to the college. The board members are being sued for negligence because they breached their duty to the community because they knew of McCall's actions.

Some of the lawsuit's claims are that President McCall and board members:

1. Improperly used The Long Endowment for purposes other than intended use.

2. Failed to collect approximately $1 million in tuition from students who were allowed to take classes and/or graduate.

3. Implemented a "grossly negligent business plan" that included expanding the student population in a manner that caused Lon Morris College to incur substantial debt. Also in that plan were LMC's addition of football, hospitality and agricultural programs that required additional expenditures.

The lawsuit states that during their selection of McCall in 2005, the board members did not properly vet McCall as a candidate. The lawsuit says that while McCall held a doctorate from Texas A&M University, "he did not have any experience whatsoever managing a college, or any other business, for that matter."

The college alleges in the suit that McCall was not qualified and was "functionally illiterate in accounting and finance matters, having never taken any accounting courses, having taken no substantive finance courses, and having no business or managerial or operational expertise of any significance."

The defendants have until the end of the month to answer their summons. No hearings have been set.

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