Two former presidents of the Student Housing Administrative Council are currently under investigation for an unauthorized $10,000 check cashed in August.

Former council president Matt Franson wrote the check out to advertising firm AcerPrudens, owned by fellow ex-president and current Student Association Speaker Russ Rueden. However, the expenditure was allegedly never authorized or approved by the SHAC governing body, which would be a violation of SHAC’s Constitution and bylaws.

According to Article IV, section III of the SHAC Constitution, any budgets of over $100 taken from the organization’s checking account must be passed by a majority vote of the Executive Board.

“No funds were voted on or approved,” said current SHAC President Jesse Dercks.

He also added that thus far, no services have been provided to the organization by AcerPrudens.

“The $10,000 has (gone) toward nothing. No services have been rendered that we are aware of. It’s a bogus site,” Dercks said.

Dercks said that no contact has been made between SHAC and the firm and that the check is the only reason that they know the site exists. Bank statements and copies of the signed checks confirm the transaction, with Rueden and Franson as the account holders.

“It didn’t make sense for a check to be written out to an advertising firm, since we have the Program Services Center, a section of the residence hall that handles all of our advertising,” Dercks said.

Voicemail messages to both Rueden and Franson were not returned.

Analysis of the written check reveals that it was dated for March 8 but not cashed until Aug. 21. Franson’s term as SHAC President ended on May 28.

Problems arose over the summer when outgoing president Franson failed to turn over the organization’s fund-raising checkbook at the end of his term. Repeated attempts by SHAC members and University Housing to recover the checkbook were unsuccessful, and the check was not discovered until Dercks received the August account statement.

The money was taken from SHAC’s fund-raising account and not from segregated fees or student funds, as confirmed by several members of the organization.

University police are investigating the matter.

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