Apparently, state authorities in New Jersey have the power in certain circumstances to take action against private non-profits. And apparently, reports Inside Higher Ed, they see more than enough reason to do so in the case of Stevens Institute of Technology:
Seeking the ouster of both the president and board chair at Stevens Institute of Technology, New Jersey’s attorney general filed a lawsuit (last) Thursday that describes the institute’s top two leaders as clandestine partners bolstering the president’s pay without authorization, concealing damning reports from trustees and violating the wishes of donors.
The 90-page lawsuit draws on a three-year investigation, which zeroed in on the business and management practices of Harold J. RavechÃ©, the institute’s president, and Lawrence T. Babbio, chair of the board. The result of the probe is a 16-count civil complaint, which enumerates allegations of financial mismanagement, including clandestine efforts to compensate RavechÃ© without the full knowledge of the board.
This is juicy, so make sure to read the whole thing.