Forgeries By Dr. Soule May Total $34,000
Forgeries By Dr. Soule May Total $34,000
University Scientist Began Embezzlement In 1938, Officials Say
Confirmed and suspected forgeries committed by the late Dr. Malcolm H. Soule, University bacteriologist who killed himself after being fired from the faculty, amount to a sum “in excess of $34,000,” President Alexander CL Ruthven revealed today.
Dr. Soule died Friday evening, Aug. 3, in the basement of his home from eight self-injected doses of snake venom and morphine three hours after being dismissed for ‘‘mishandling of departmental funds.”
The Board of Regents has filed a formal claim with the University bonding company for forged checks and vouchers totaling about $13,800, accompanied by “documented evidence” of the forgeries.
Probe Continued
In addition, another group of checks being investigated, totaling some $20,200, have not been confirmed as forgeries. The investigation is being continued.
The wierd tale of the embezzlement goes back, so far, to December of 1938, President Ruthven explained. In all, 48 checks are involved, apparently, no more than six were forged in any one year.
It was reported that the largest forged check was made out in the sum of $1,540.50, dated in 1947. They ranged downward to sums less than $100.
"In several cases the forgeries were felonious misuse of the names of distinguished scientists who have since declared they had no business relationship with Dr. Soule or the department of bacteriology,” Dr. Ruthven said.
No names were disclosed.
No Hints In Audits
So clever was Dr. Soule, the statement indicated, that neither certified public accountants, who annnually audit the University’s financial books, nor regular U-M accounting procedures hinted at the forgeries.
In most cases, Dr. Ruthven said, the forgeries started with the use of vendors’ invoice-vouchers, which were falsified. Generally, the vendors were purported dealers in small animals used in experimental laboratory work, such as rabbits, guinea pigs and rats.
The checks in payment of the items requisitioned were then turned over to Dr. Soule for payment to the parties concerned, which, a University spokesman said, is “not uncommon practice.”
The scientist then Dr. Ruthven said, forged the name of the payee on back of the University checks, signed his own name below, and cashed the checks at banks.
Forgeries ‘Accurate’
Handwriting experts said the forgeries were very accurate reproductions of the actual signatures of the alleged vendors, samples obtained usually through correspondence.
Investigation of the forged vouchers was initiated, University officials said, after three travel voucher forgeries were discovered. The checks were made out to persons presumed to have visited the campus for job application interviews.
Again, the checks were sent to Dr. Soule for delivery as in the other cases, and the subsequent forgeries were made, the statement said.
Prior to the voucher investigation, Dr. Soule “had been suspected of some form of mishandling of departmental accounts, but he was not under suspicion for forgery,” Dr. Ruthven said.
The scientist was dismissed on the basis of the three forged travel vouchers by the Board of Regents, who had turned down his written resignation. Dr. Soule’s suicide followed three hours later.
Claim Filed
The formal loss claim was filed with George W. Carter, president of the Detroit Insurance Agency, representing the National Surety Corp., insurers on a fidelity risk! policy covering University employes.
Carter forwarded the claim to the surety firm in New York yesterday, and a representative is now in Ann Arbor to make a further study of the claim.
University authorities declined to estimate when the $20,200 in suspected embezzlements would be confirmed.
Dr. Soule, who was 54 and well-known in scientific circles, had been a professor of bacteriology in the Medical School since 1931, and, chairman of the department since 1935.
He received three degrees from; the University, including a doctor; of science diploma in 1924.