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Puliafito (8/7)
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Rich and powerful figures will set course in wake of scandal, behind closed doors.
Aug 6, 2017 | Los Angeles Times
By Sonali Kohli, Sarah Parvini, Matt Hamilton And Adam Elmahrek
How USC handles one of the biggest scandals in its history will be decided behind closed doors by a small group of wealthy and powerful people. -
Twists, turns and maybe TMI about USC (OPINION)
Aug 5, 2017 | Los Angeles Times
By Sara Lessley
The unfolding saga of the downfall of ex-USC medical school dean Dr. Carmen A. Puliafito has saddened, surprised and angered readers. Dozens of Times letter writers have reacted to the many angles of the developing scandal, with the weekend article detailing the history of internal complaints about Puliafito’s drinking and abusive behavior eliciting especially sharp replies.
Traditional Media Coverage
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Rich and powerful figures will set course in wake of scandal, behind closed doors.
Aug 6, 2017 | Los Angeles Times
By Sonali Kohli, Sarah Parvini, Matt Hamilton And Adam Elmahrek
How USC handles one of the biggest scandals in its history will be decided behind closed doors by a small group of wealthy and powerful people.
Composed of 57 voting members, USC’s board of trustees includes noted philanthropists, accomplished alumni, Hollywood insiders and industrial tycoons. The group’s influence extends from the floor of Staples Center to metropolises in India and China.
A small executive committee makes many of the significant decisions facing the university. A USC spokesman refused to identify who is on this committee. Nor would the university disclose what happens at its meetings or release minutes.
It is this elite group that is overseeing the investigation into how the university handled the case of former medical school dean Dr. Carmen A. Puliafito. The Times reported last month that Puliafito, while leading USC’s Keck School of Medicine, partied with a circle of addicts, prostitutes and other criminals who said he used drugs with them, including on campus.
The full board of trustees, which includes director Steven Spielberg, Lakers owner Jeanie Buss and mall magnate Rick J. Caruso, must ultimately determine whether USC President C.L. Max Nikias, himself a voting member, and other top administrators acted appropriately with regard to Puliafito.
Since the scandal broke, the trustees have been largely silent. Times reporters attempted to contact all 57 voting members by phone, email or both. Reporters also sent requests to USC’s press office seeking comment from trustees. Only two commented to The Times. The rest did not reply, or declined to comment. Nikias did not respond to requests for interviews but has released letters to the USC community.
Several trustees told reporters to take their questions to the USC administration.
“They’ve asked us not to speak,” said Lydia Kennard, founder and chief executive of KDG Construction Consulting. “All calls should be referred to the university.”
Caruso, who completed his undergraduate degree at USC, told Times columnist Steve Lopez:
“If the allegations are true ... I'm very disturbed and condemn the illegal use of drugs, especially by someone who holds the highest level of trust and care.”
Rick J. Caruso
founder and chief executive, Caruso Affiliated
In a short statement to The Times, board Chairman John Mork, a Denver oil executive, did not discuss the trustees’ plans for moving forward but expressed support for Nikias and the university provost, Michael Quick.
“As chairman, I am certain they will work quickly and decisively to make all necessary changes and will put in place policies and procedures to prevent something like this from happening again," the statement read.
Some experts said the limited information about the board and its activities could present challenges for USC as it tries to navigate the scandal.
The USC bylaws “give a huge amount of power to the executive committee,” said Michael Poliakoff, president of the American Council of Trustees and Alumni and a former vice president for academic affairs and research at the University of Colorado.
USC’s bylaws state that the executive committee must include seven to 17 trustees, including the board chairman and the university president. The document gives the small assembly almost all decision-making power when the full board is not in session.
"There will be a fair number of board members who are not engaged in serious decision-making,” Poliakoff said. “The problem with empowering the executive committee in that manner is that a great number of trustees … are more or less in the dark. They become decorative backdrop rather than actually filling the fiduciary role. That is not a healthy situation in governance.”
The USC board is larger than most — private university boards are usually around 30 members, and best practices suggest that no more than 15 people oversee a university, Poliakoff said.
Stanford University, by comparison, has 32 voting trustees. The entire 10-campus University of California system has 26 regents responsible for decision-making.
USC declined to comment on the board’s structure or why the body is so large. But universities, especially those trying to fundraise, retain large boards because their trustees are expected to donate — and often the more impressive the trustees, the more likely others are to give to the college, said Michael Useem, a University of Pennsylvania management professor who writes about governance.
Under Nikias’ leadership, USC recently completed a $6-billion fundraising goal, aided by multimillion-dollar gifts by trustees including philanthropist Wallis Annenberg and Suzanne Dworak-Peck, a prominent social worker.
Wealth is a common thread in the trustee roster. About a dozen are billionaires, including developer Ed Roski; Miriam Adelson, an addiction specialist and the wife of casino owner Sheldon Adelson; Salesforce Chief Executive Marc Benioff; and Tamara Hughes Gustavson, the daughter of Public Storage Inc. co-founder B. Wayne Hughes.
Some on the board are USC alums, such as Benioff, construction magnate Ronald Tutor, and David Bohnett, a philanthropist and technology investor.
Over the years, more international figures have joined the ranks, including the head of Korean Air, Yang Ho Cho; Indian industrialist Ratan N. Tata;and Wenxue Wang, a Chinese developer.
The trustees’ public silence is not surprising, nonprofit governance experts said — many boards choose to speak with a unified voice during investigations, especially when information is still coming out.
But the trustees should internally be examining their practices and communications, said Cathleen Kaveny, a Boston College professor who specializes in law, ethics and medical ethics.
“The board can’t let itself off the hook. This is a question of trustee ethics,” Kaveny said. “A healthy board is going to ask itself: ‘Have we participated in the creation of a culture where the most egregious ethical lapses are ignored because the money is coming in?’ ”
Nikias announced last month that the university was hiring a former federal prosecutor, Debra Wong Yang, to lead the outside investigation. USC would not say whether it was the board or Nikias who selected Yang.
In response to questions about who made the choice and who would oversee the investigation, Mork released another statement to The Times on Monday. In it he wrote that the president and top administration officials “regularly engage with the board's executive committee to provide updates and seek advice on important matters related to the university.”
“I have utmost confidence and trust in President Nikias' and Provost Quick's ability to lead USC through this challenging time and to move the university forward.”
John Mork
chairman, USC Board of Trustees; chief executive, Energy Corp. of America
Nikias noted in his July 21 letter to the USC community that Yang will report “findings and recommendations” to the executive committee.
Yang has close ties to USC and served as the university’s attorney in at least four court cases.
Among the questions Yang is likely to examine: What did top administrators know about Puliafito’s problems while he was leading the medical school?
Current and former university employees told The Times that in 2012 when the university was deciding whether to give Puliafito another term, they complained repeatedly about what they considered Puliafito’s hair-trigger temper, public humiliation of colleagues and perceived drinking problem, and many were adamant he be removed.
Still, Nikias opted to reappoint Puliafito, giving him a new five-year term with an annual salary of more than $1 million.
In March 2016, the then-dean was with a 21-year-old woman in a Pasadena hotel room when she overdosed.
A witness to the overdose phoned Nikias’ office 10 days later and threatened to go to the media if the school didn’t take action against the dean. In a letter to the campus community released July 28 — 11 days after The Times broke the story — Nikias said that two receptionists who spoke to the witness did not find the report credible and did not pass it on to supervisors.
A week and a half after the witness called Nikias’ office, Puliafito resigned. The Harvard-trained ophthalmologist was allowed to continue seeing patients at USC clinics, represent the university at official functions and remain on the faculty.
Governance and ethics experts said Nikias’ role on the board deserves scrutiny.
C. L. Max Nikias
president, University of Southern California
Nikias has not responded to requests for interviews, but has publicly released letters to the USC community
Kirk Hanson, the executive director of the Markkula Center for Applied Ethics at Santa Clara University, said it is not uncommon for a president to serve as a voting member of a board. But if assessing his actions is part of the investigation, Hanson said, Nikias should recuse himself.
“It would be best practice to have the board supervise the investigation and discuss findings without him present,” Hanson said.
A USC spokesman declined to say whether Nikias would recuse himself or whether the results of the investigation would be made public.
Poliakoff said USC might help itself by being transparent in the process.
“Secrecy is something that needs to have a compelling justification,” Poliakoff said. “And when an institution has been in such a reputational crisis as USC is currently experiencing, sunshine is indeed … the best disinfectant.”
Contacting the trustees:
Times reporters attempted to contact all 57 voting members by phone, email or both. Reporters tried to reach trustees using personal phone numbers and/or email addresses. When those were not available or the attempts were unsuccessful, reporters tried to reach the trustees at work, either through direct calls and/or emails or through company spokespeople. The Times also sent requests to USC media relations to speak with trustees.
Only two trustees commented. The rest did not respond, or declined to comment when reached by phone or through spokespeople and assistants. Nikias did not respond to requests for interviews, but has publicly released letters to the USC community.
Miriam Adelson
founder and chairperson, Dr. Miriam and Sheldon G. Adelson Clinic for Drug Abuse, Treatment and Research
Did not respond to requests for comment.
Michael E. Adler
Greenberg, Whitcombe, Takeuchi, Gibson, Grayver LLP
“I don't have any ... I can't, I'm sorry.”
Wallis Annenberg
chairman, president and chief executive, Annenberg Foundation
Declined to comment.
Wanda M. Austin
president and chief executive (retired), the Aerospace Corp.
Did not respond to requests for comment.
Thomas J. Barrack Jr.
founder and executive chairman, Colony Capital Inc.
Declined to comment.
Marc Benioff
chief executive and chairman, salesforce.com
Declined to comment.
David C. Bohnett
chairman, David Bohnett Foundation
“I'm aware of it [the investigation] and I have no comment.”
Joseph M. Boskovich Sr.
chairman and chief investment officer, Old West Investment Management LLC
Did not respond to requests for comment.
Robert A. Bradway
chairman and chief executive, Amgen
Did not respond to requests for comment.
Jeanie Buss
president/governor, Los Angeles Lakers
Declined to comment.
Charles G. Cale
managing member, Griffin Opportunities LLC
Did not respond to requests for comment.
Ramona L. Cappello
president and chief executive, Sun Harvest Salt LLC
Did not respond to requests for comment.
Alan I. Casden
chairman and chief executive, Casden Property Co. LP
Did not respond to requests for comment.
Ronnie C. Chan
chairman, Hang Lung Group Ltd and Hang Lung Properties Ltd
Declined to comment.
Yang Ho Cho
chairman and chief executive, Korean Air
Declined to comment.
Christopher Cox
president, Morgan Lewis Consulting LLC; partner, Morgan, Lewis & Bockius LLP
Did not respond to requests for comment.
Frank H. Cruz
president, Cruz & Associates
Did not respond to requests for comment.
David H. Dornsife
chairman, the Herrick Corp.
Did not respond to requests for comment.
Suzanne Dworak-Peck
ambassador, International Federation of Social Workers
Did not respond to requests for comment.
Michele Dedeaux Engemann
community leader
Did not respond to requests for comment.
Daniel J. Epstein
executive chairman and founder, ConAm Management
Did not respond to requests for comment.
Frank J. Fertitta III
chairman and chief executive, Fertitta Entertainment
Did not respond to requests for comment.
Stanley P. Gold
chairman, Shamrock Holdings Inc.
Declined to comment.
Tamara Hughes Gustavson
partner, American Commercial Equities
Did not respond to requests for comment.
Jane Harman
director, president and chief executive, Woodrow Wilson International Center for Scholars
Declined to comment.
Ming Hsieh
chairman and chief executive, Fulgent Therapeutics
Did not respond to requests for comment.
Suzanne Nora Johnson
former vice chairman, the Goldman Sachs Group Inc.
Declined to comment.
Lydia H. Kennard
chairman and chief executive, KDG Construction Consulting
“I really can't speak to you. ...They've asked us not to speak. ... All calls should be referred to the university.”
Kenneth R. Klein
chairman and chief executive, Tintri Inc.
Declined to comment.
John Kusmiersky
president, the Brickstone Cos.
Did not respond to requests for comment.
Kathy Leventhal
community leader
Did not respond to requests for comment.
Mitchell Lew
chief executive, Prospect Medical Systems
“The university has a communications department that is handling everything.”
William J. McMorrow
chairman and chief executive, Kennedy Wilson
Did not respond to requests for comment.
Rod Y. Nakamoto
co-founder, theUgroup at Merrill Lynch
Declined to comment.
Carmen Nava
senior vice president for premium care and customer loyalty, AT&T Entertainment Group
Did not respond to requests for comment.
Shelly Nemirovsky
community leader
“I would have no comment right now...I think at this juncture it would be inappropriate.”
Dominic Ng
chairman and chief executive, East West Bank
Declined to comment.
J. Kris Popovich
chairman, the Hoffman Foundation
Did not respond to requests for comment.
Blake Quinn
chairman and chief executive, Quinn Group Inc.
Did not respond to requests for comment.
Edward P. Roski Jr.
president and chairman, Majestic Realty Co.
Did not respond to requests for comment.
Amy A. Ross
biotechnology executive (retired)
Did not respond to requests for comment.
Frederick J. Ryan Jr.
publisher and chief executive, the Washington Post
Declined to comment.
Leonard D. Schaeffer
founding chairman and chief executive, WellPoint Inc.
Did not respond to requests for comment.
William E. B. Siart
chairman, ExED
Did not respond to requests for comment.
Jeffrey H. Smulyan
chairman, Emmis Communications
“I cannot comment... I think the university will handle it and I hope you'll understand.”
Steven Spielberg
principal partner, DreamWorks SKG
Declined to comment.
Heliane M. Steden
former managing director, Merrill Lynch
Did not respond to requests for comment.
Mark A. Stevens
managing partner, S-Cubed Capital; special limited partner and former managing partner, Sequoia Capital
Did not respond to requests for comment.
Ronald D. Sugar
chairman emeritus, Northrop Grumman Corp.
Did not respond to requests for comment.
Tracy M. Sykes
doctor of physical therapy
Did not respond to requests for comment.
Ratan N. Tata
chairman emeritus, Tata Sons, Tata Industries, Tata Motors, Tata Steel and Tata Chemicals
Did not respond to requests for comment.
Daniel M. Tsai
chairman, Fubon Financial
Did not respond to requests for comment.
Ronald N. Tutor
chairman and chief executive, Tutor Perini Corp.
“I have no interest in talking to the L.A. Times. ...Just draw a line through my name.”
Wenxue Wang
founder and chairman, China Fortune Land Development Co. Ltd.
Did not respond to requests for comment.
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Twists, turns and maybe TMI about USC (OPINION)
Aug 5, 2017 | Los Angeles Times
By Sara Lessley
The unfolding saga of the downfall of ex-USC medical school dean Dr. Carmen A. Puliafito has saddened, surprised and angered readers. Dozens of Times letter writers have reacted to the many angles of the developing scandal, with the weekend article detailing the history of internal complaints about Puliafito’s drinking and abusive behavior eliciting especially sharp replies.
Here are a few of the responses.
Sandra Perez in Santa Maria has praise:
I can’t thank your reporters enough for so doggedly pursuing the appalling story of how USC all but ignored Puliafito’s egregious conduct while continuing to exploit his fund-raising prowess.
In Culver City, Meta Valentic is direct:
I read the article and wondered how USC could keep Puliafito at the helm of the Keck School of Medicine despite the many complaints logged about his behavior. Then, I found the answer in one short quote from former HR director James Lynch: “He’s kind of a pain in the ass, but he gets results.”
It's remarkable how uninterested I am in knowing more about the crazy former dean of the USC medical school.
— Nick Batzdorf, Sherman Oaks
That's entitled privilege laid bare. Until USC looks at its problem with enabling people like Puliafito, they won't find any answers in this embarrassing debacle.
From Sherman Oaks, Nick Batzdorf questions The Times’ priorities:
We are living in tumultuous times with all kinds of vitally important things going on locally, nationally, and internationally. It's remarkable how uninterested I am in knowing more about the crazy former dean of the USC medical school. Is it possible that these many above-the-fold stories about this idiot is excessive?
Observes Nancy A. Stone from Santa Monica:
The lengths to which USC’s administrators went to bury the Puliafito story speaks volumes about the university’s misplaced priorities. Obviously, money is far more important than integrity to the Trojan brand.
Cheryl Clark-O'Brien of Long Beach offers:
When I first read about the allegations against Dr. Puliafito, I thought he must be some kind of superhuman, raging with 20-year-olds by night, saving eyesight by day. Grudging respect.
Now it seems his colleagues already thought he was a bully and were concerned about his drinking. They tried to go through channels, but the doctor remained an honored employee. What a surprise.
Added Armen Goenjian, a physician from Long Beach:
Missing in these reports was a salient feature of the narrative, that the dean was suffering from a progressive disease.
The humiliating repetitive description of his inappropriate behavior adds insult to his psychological injuries, reduces the chances of his recovery and ability to find decent employment in the future.
Nancy Becklund Spencer in Glendale sees it differently:
Once again, a very good article ... My anger is that he is now portrayed as a victim. The victims are the great doctors and nurses at USC and those who left.
Traditional Media Coverage
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