1. Penn State: Lessons Learned
Maine Municipal Association
October 1, 2014
Presented by: Peter D. Lowe
(207)

2. Today’s Agenda The Penn State Story as a Case Study Lessons Learned:
Investigative
Culture of Silence
Governance
Independence

3. The Players Gerry Sandusky Joe Paterno Graham Spanier Gary Shultz
Tim Curley
Mike McQueary
James Calhoun
- Assistant Coach - “Coach” - President - S.V.P./Treasurer - Athletic Director - Graduate Assistant - Custodian

4. “It’s a tremendous legacy he’s built over a long period of time
“It’s a tremendous legacy he’s built over a long period of time. He has had such loyalty and dedication to the university and the community.” – Athletic Director Tim Curley, 2000

5. Career Overview
Jerry Sandusky starts his coaching career at Penn State University as a Defensive Line Coach.
1969
1977
Sandusky established “The Second Mile” program.
1983 & 1987
Penn State University National Championships.
1999
Sandusky retires.

6. Scandal Breaks
Patriot-News reports grand jury is investigating Sandusky on allegations of indecent assault against a teenage boy.
March 2011
November 2011
Jerry Sandusky is indicted.

7. Sandusky is Found Guilty
One June 22, 2012 Sandusky is convicted of child molestation.

8. Sandusky sentenced to 30 to 60 years
"You will serve not less than 30 and no more than 60 years in prison," the Judge told Sandusky. “ That has the unmitigated impact of saying 'the rest of your life in prison.' "

10. Tragic Misses - 1998 Survivor 6 (11 years old) Showers with Sandusky
Police and State investigate
No criminal charges
Shultz’s – “no criminal behavior… the matter was closed… and I hope it is now behind us.”
Shultz’s notes – “Is this opening Pandora’s box? Other children?”

11. Tragic Misses
Custodian James Calhoun witnesses Sandusky sexually assault boy in shower
Discussed with co-workers
“they’ll get rid of all of us”
“football runs this University”
Not reported

12. Tragic Misses
Graduate Assistant McQueary observes Sandusky sexually assault boy in shower
Outcome
No police or DHS report
No internal investigation
Report to Second Mile
Surrender keys and “no guests”

13. The Cover-Up Captured in E-mail
Athletic Director Tim Curley to Spanier and Schultz –
“After giving it more thought and talking it over with Joe yesterday…
I would indicate we feel there is a problem… We feel a responsibility to inform his organization and maybe the other one about the situation.”

14. The Cover-Up Captured in E-mail
President Spanier replies –
“This approach is acceptable to me… The only downside for us is if the message isn’t “heard” and acted upon, and then we become vulnerable for not having reported it.”

15. The Cover-Up Captured in E-mail
Senior V.P Schultz’s concurs –
“[t]his is a more humane and upfront way to handle this… we will inform his organization. We can play it by ear and decide about the other organization.”

16. The Consequences Abuses victims for another decade
Sandusky jailed for life
Schultz, Curley, and Spanier indicted
Reputational harm
$49 million in fees… and counting
Huge civil damages liabilities

17. The results from a "failure of leadership"
What are our obligations…..from a legal perspective and a public relations perspective?

18. Freeh Report Conclusions
Investigation concluded that, the most powerful leaders at the University repeatedly concealed critical facts relating to Sandusky’s child abuse.
The investigation revealed:
An institution dominated by the culture of reverence for its football program.
Chronic investigatory failures.
A striking lack of empathy for child abuse victims.
A failure by the Board to exercise its oversight functions in 1998 and 2001.
A failure by the Board to make reasonable inquiry.
A President who discouraged discussion and dissent.
A lack of awareness of child abuse issues and whistleblower policies and protections

19. Lessons Learned Investigate: Gather the Facts Illegal conduct
Risk of harm
Required by law
Required by policy

20. Failure to Investigate
The top dog
Risk of reputational harm
The highly regarded respondent
The less regarded complainant
Nothing criminal
Hope it blows over

21. Lessons Learned Overcome the Culture of Silence
Understanding of policies and protections
Understanding of responsibilities
Show that the process works

22. Lessons Learned Develop a Culture of Accountability Board of Directors
President/CEO
Senior leadership
Risk Management
All employees

23. Lessons Learned
Seek Independent Advice

24. Lessons Learned Crisis Management Avoid knee jerk defensive posture
Speak when you have the facts
Admit your mistakes… even apologize
Manage the media

25. MAINE MANDATORY REPORTING
Required report to department. The following adult persons shall immediately report or cause a report to be made to the department when the person knows or has reasonable cause to suspect that a child has been or is likely to be abused or neglected or that a suspicious child death has occurred:
When acting in a professional capacity:
A teacher;
A guidance counselor;
A school official;
A youth camp administrator or counselor;
A social worker
The reporter should be reassured that their identity will be protected should their testimony not be needed in court and their immunity from liability if the report was made in good faith.

26. How To Investigate Use a skilled investigator. Make it a priority.
Ask the tough questions.
Don’t skimp on interviews.
Write a thorough report.

27. Assessing Credibility
Find out who else Complainant told his/her story to.
Review personnel files and performance history.
Interview supervisors.
Interview co-workers (not just eye witnesses).

28. Explore motive to lie.
Examine the consistency of the story.
Evaluate demeanor.
Consider the details.

29. The Conclusion of the Investigation
The written report:
Set the stage.
Summarize interviews.
Review other evidence.
Make factual findings.
Explain why you reached your decision.

30. The consequences: Make your decision after your report is written.
Explain your findings and decision to Complainant in writing.
Explain your findings and consequences to Respondent in writing.

31. Questions???