Chico State professor under investigation for alleged misuse of university funds
Curtis DeBerg’s office door in Tehama Hall is left blank next to SAGE Global memorabilia. A plaque in honor of Sierra Nevada Brewing Company founder Ken Grossman is visible. It reads “SAGE commends the Ken Grossman/Katie Gonser Family for its commitment to helping teens create socially responsible businesses that address the United Nations Sustainable Development Goals.”
The nonprofit organization Students for the Advancement of Global Entrepreneurship (SAGE Global) is not active on Chico State’s campus since the start of the Spring 2020 semester following an internal investigation into the organization’s CEO, accounting professor Curtis DeBerg.
On Aug. 24, 2018, the CSU Chancellor’s Office informed Chico State’s administration that a full investigation was launched regarding DeBerg, SAGE Global and their involvement on campus due to allegations that were brought by administration.
After this investigation, the chancellor’s office released a report claiming DeBerg:
- Had a conflict of Interest
- Misused Instructionally Related Activities Funds, Travel Expenses, Work-Study Funds
- Misused Study of the United States Institute Grant Funds
- Falsified Invoices
- Violated Campus Policy Regarding Faculty Profits on Course Materials
Discoveries from the investigation, according to the report, claim that DeBerg “misused the campus’ name and other resources to promote and operate his nonprofit business … falsified invoices in an attempt to receive reimbursement for expenses for which he did not have proper documentation and increased students’ pay in a way that obfuscated the true purpose of the expenditure.”
Additionally, the investigation claims DeBerg required students to buy his own CoursePass that cost $89.95 or else they would be administratively disenrolled from the course.
The campus, as a part of their response to the reported discoveries, is working on implementing different policies and requirements.
“The campus is in the process of responding to the recommendations from the chancellor’s office investigative report released Nov. 6, 2019,” Provost and Vice President for Academic Affairs Debra Larson said. “This report has given us the opportunity to review facts and evaluate the effectiveness of our internal policies and procedures.”
The response from the campus includes the decisions to “evaluate the appropriateness of the role of SAGE Global in activities that involve students or campus or foundation funds,” and “rename the SAGE student group to differentiate it from SAGE Global.”
The campus will also “require (DeBerg) to stop selling his CoursePass materials. Further, revise the policy governing faculty profits on course materials and communicate the changes to all faculty.”
DeBerg gave a comment to The Orion regarding this situation.
“SAGE has been an important part of the College of Business since Fall 2002,” DeBerg said. “The program has brought local, national and global recognition to our campus under the umbrella of community service-learning, K-12 outreach, public-private partnerships, global awareness and social entrepreneurship. Prior administrations have recognized and rewarded SAGE and me, for our work; The current administration obviously prefers it be discontinued, mainly citing conflict of interest concerns.”
DeBerg is not on campus this semester and the university did not discuss his status. Currently, the university is working on a series of actions, along with DeBerg to move forward with the situation and investigation.
“The university takes very seriously the commitment to act as loyal fiscal stewards to the state and to our students,” Larson said. “It’s essential to remind the campus community about their fiscal responsibilities, and how responsible fiscal stewardship is critical to our mission and the public’s confidence.”
Angelina Mendez and Jessie Imhoff can be reached at [email protected] or on Twitter @theorion_angie and @JessieReports
Corrected on 2/25/20: Corrections were made regarding SAGE Global’s involvement on campus.
John (former business/SAGE student/member) // Mar 10, 2021 at 3:15 pm
CSU Chico School of Business was in the past (2014 or so) definitely a bit sketchy; but Mr. DeBerg was a diamond in that rough. He was an incredibly effective teacher and leader of SAGE Global and I believe that he has transformed many lives and communities globally for the better via SAGEGlobal.
Trying to blame things on him smells ripe of red herring; albeit, an effective one as he is a smart and direct person with traits that can rub people (esp. dishonest people) the wrong way. DeBerg literally has empowered youth in many, many countries to start small enterprises for themselves and their community, focusing on environmental stewardship and civic engagement. Pointing at him and his 501(c)3 non-profit as a primary producer of malfeasance in the business school is laughable at best.
Asking students to pay for material HE created is common place in academia (I can’t tell you the number of classes which exist where the professor’s book is a requirement for the class). DeBerg bypassing publishing fees is smart (i.e. the internet) and bypassing University approval may have been the only way forward due to heavy bureaucracy. Hopefully the audit can inform the university how it can help professors like DeBerg receive due payment for their non-traditional material (why was he not receiving due payment in the first place?)
Information transfer has changed in the information age, and to not accommodate professors that change with it is akin to negligence in my opinion. Compensation for such needs to change as well. $250 books is crazy in a time where the internet is free.
The University definitely needs professional and EXTERNAL audit investigations. How were other 400-level professors being compensated, I wonder? I literally left the university without graduating (~90% of my degree done) because I felt like my work was being leveraged for personal and corporate financial gain (i.e. guest speakers offering senior business students $30k “investment” loans which require “personal” guarantees?) What corporations have offices nearby the Campus? How are professors required to divulge conflicts of interests with for-profit corporations that can leverage student work?
Chico (and thus myself) was lucky to have Curt as a professor. He and SAGE was definitely one of the highlights.
NOT GOOD... // Dec 23, 2020 at 1:27 pm
If a professor is forcing students to buy his book and that hasn’t been cleared.. NOT GOOD…
If a professor is using students to write, lets say grant applications, as a class assignment and that same professor uses those turned in assignments to get county money for their own non-profit business, if they have/had one for example… NOT GOOD…
If a professor (or any employee of any CSU) falsifies documents.. NOT GOOD…
Whether others are “jealous” or not .
As for the next person…
As per #3/4 in the comment above…
* Part time professor
* In the College of Business
* Currently doing business with the one that hired him (at the time of the above writing allegedly)
* Running for the City Counsel boasting being a “Professor of Business” in their campaign material.. allegedly
and I’ll do you one better…
* Recently elected?
NOT GOOD… An easy Google away…
AND NOW THIS as of 12/23/20
To: Campus Community
From: President Gayle Hutchinson
As a public university, we have a solemn obligation to ensure that our funds are spent appropriately and efficiently and, further, that we hold ourselves to the highest standards of accountability.
With this obligation in mind, I am saddened to share news of a recently completed, campus-initiated investigation that uncovered numerous acts of financial and professional misconduct in our Department of Accounting. According to the investigation, these acts of fraud, abuse, and other ethical lapses occurred between 2014 and 2019, resulting in approximately $1 million of inappropriate compensation and other financial losses to the University.
Based on the findings of the investigation, today we placed four employees on leave, pending final disciplinary action. Each of these employees has privacy rights and due process rights to appeal any discipline. We also have referred the matter to the appropriate authorities to investigate potential criminal conduct and will be seeking any restitution to which the University may be entitled.
Because this matter involves confidential personnel issues, we can’t identify these individuals by name and are limited in what we can share about the surrounding circumstances.
What I can say is that the fraudulent and abusive activity identified in the investigative report does not reflect the values of our University. Regardless of our respective positions, we each share a duty to uphold the highest ethical standards in our fiscal practices, professional conduct, and our daily work. I am personally outraged that a few individuals have abused the trust placed in them by students, taxpayers, and donors for their personal benefit.
Finally, I want you to know how seriously the University leadership takes this matter. We are committed to the best practices in our operations to ensure transparency and accountability. I have every confidence that Dean Terence Lau will continue his work in strengthening the operational practices and oversight in the College of Business. In addition, we have identified numerous corrective actions to strengthen our systems and processes, which I will be working to ensure are fully implemented throughout the University.
Thank you for respecting the privacy and process related to this investigation, and for your own dedication to upholding the public’s trust and supporting student success.
NOT GOOD… for the CSU COB and it looks like those involved are being closely scrutinized as they should be.
Insider // Feb 28, 2020 at 2:03 pm
This story is just the tip of the iceberg ( pardon the pun ). This story should trigger a complete investigation into the College of Business. If this was done the results would show the following:
1. A recent Dean , diverted $85, 000 in instructional funds from a specific subject area to hire his wife to “teach” in an area where she had no academic qualifications. This was known to most faculty and the administration but nothing was done.
2. A recent Associate Dean’s wife continues to be hired to teach in a discipline and subject area which requires specific training and in which she has no relevant Qualifications and experience. She is given priority in teaching courses over full time tenure track faculty.
3. The selection criteria for part time instructors are flexible to accommodate friends and families of the power clique in the College of Business. One part time instructor has openly campaigned for public office as a Professor of Business without anything being done to stop him from communicating this falsehood and misusing the University’s name and logo for his personal gain.
4. This same “Professor” is currently doing business with another Professor who hired him initially when Professor was Department Chair. This was a conflict of interest. And the part time Professor did not and does not meet the minimum qualifications to be hired. This “Professor” continues to be assigned to teach courses that he is unqualified to teach and is given priority in being assigned to courses over full time qualified faculty. This “Professor” is extremely popular with students as he does not demand much from them, assigns out of class assignments in lieu of in class lectures . His political office responsibilities on the City Council invariably lasts into the night and when he does come to class, students are broken up into groups to do group work.
5. The position of Department Chair is a complete waste of State of California funds. The number of Department Chairs has increased from three to five. And these positions are designed to create avenues for faculty to boost their pensions. While they should be teaching, they are wasting time playing video games on their computes and assigning most of the real work to Department Secretaries.
6. The administrative structure of the College is too heavy and a waste of State of California resources. There is currently in place a Dean, , an Associate Dean, five Department Chairs, three Coordinators of Special Programs and a large number of Administrative Assistants, Associates and Secretaries. If one were to add up the costs of these posts one would discover an alarming amount of waste, fraud and mismanagement.
7. Selection, Retention, tenure and promotion Policies are a joke. To be tenured and promoted a faculty member has to bend over and bow down to the old timers and whatever that leads. Sexual harassment is part of this equation.
Professor DeBerg’s situation is no different from a number of practices currently obtaining in the College Business in the various Departments and Special Programs. Professor DeBerg situation is the result of envy and jealousy by some faculty who are envious with his success .
The Department of Audit and the Attorney General’s Office of the State of California needs to have an Impartial External Committee of Investigation to audit, evaluate and review the College of Business in light of this DeBerg fiasco in order for the true facts to emerge and for Professor DeBerg to be given the fair shake he deserves and is entitled to.
George Rogers // Feb 28, 2020 at 1:35 pm
This is dreadfully wrong. Curt DeBerg is an ethical and , honorable person who is a terrific instructor and leader of his students and SAGE.
These allegations have slandered this professor. I suspect that a few Business faculty and campus administrators will be eating crow when the facts are revealed.
John Saunders // Feb 27, 2020 at 12:17 am
These policies about professors selling their books were ok with the former administration and just need to be updated. We haven’t even got all the facts yet and people are jumping to conclusions. Dr Deberg is a well respected international activist and helps advance global social entrepreneurship for impoverished and disadvantage kids through SAGE in China, Russia, Africa and elsewhere. You can Not simply use half the facts to draw a conclusion. Prof. DeBerg has not committed any crime or been charged with violating any laws and yet people are speaking ill words about a good man. Shady teaching? Could you be any more vague? Hearsay and vague rumors about sexism in the classroom which aren’t true have nothing to do with a change in administrative policies about book sales and what professors can use University grants and funds for.
Our professors are our greatest resource as students and graduates and Dr. DeBerg is one of the best.
Anonymous A // Feb 26, 2020 at 8:27 pm
Worst professor in the College of Business. He suggested students should drop out of the major throughout his accounting course and offered an extreme amount of extra credit for joining his club SAGE. My freshman year he told me to drop as I would never make it as a Business major and I am graduating this Spring with a Businesses degree in 4 years. He should be removed from the university as a whole.
Teddy B. // Feb 26, 2020 at 5:46 pm
What an interesting one sided argument that makes it look like Dr. DeBerg is robbing people. It is a shame that the article didn’t mention that SAGE is not sponsored by the State, that all funds come through corporate and industry donations. IRA funds are typically reimbursed by projects like these, and even if they are not they are for support of the students. That students in the COB were able to participate in these projects is an amazing thing! Like the former student who worked with Curt in the SAGE program mentioned, it was a great opportunity.
Way to go administration, look for the slightest thing not quite in line and kill the motivation to help our students out. Instead, why not help Curt with getting SAGE in line where it might be out of line, and promote the great successes for current and future students.
Former SAGE volunteer // Feb 26, 2020 at 5:44 pm
We want to blame Deberg, yet we don’t hold the university to the same standards. Year after year the university applauded this organization. If something wasn’t being done right is it not the university’s duty to make sure each organization gets properly recognized each semester. Most professors, deans and college of business chairs attended SAGE events. Shame on them for turning an eye on a fellow colleague.
Annonymous // Feb 26, 2020 at 3:38 pm
I joined his organization briefly and did not have a good time there. I was not aware of the misuse of funds but I will never recommend anyone to join SAGE. There are bad people in there who use their students as a source for cheap labor. They do not know how to organize events nor guide people. It is a shit show. They get your attention by stating that you will go abroad but in reality, when they put an event on, SAGE leadership just keeps you on board working like a dummy with no clear instructions and blames their student volunteers afterwards.
Deberg just came off like an idiot who did not know the first thing about managing his org, they treat him like a clown to be the face of sage.
sage -10/10 would not recommend
Prior SAGE Global and College of Business Student // Feb 26, 2020 at 12:57 pm
Curtis DeBerg has empowered thousands of underrepresented teens around the world by providing the opportunity to create and operate their own businesses – powered by curriculum and mentorship from CSU Chico business students. This will undoubtedly put them ahead in life.
Furthermore, Curtis DeBerg has empowered CSU Chico business students to accelerate their professional careers through philanthropy, mentorship, community and assuming leadership roles.
The current administration should embrace organizations like SAGE Global to attract more tuition, value to its business students and expand CSU Chico’s global impact on the world… Instead they feel threatened and title it “conflict of interest”. DeBerg has simply used the CSU Chico platform to his advantage to positively impact the world.
I’d be surprised if the other allegations surrounding falsifying information turn out to be anything material. Go Curt!
Hannah // Feb 26, 2020 at 11:33 am
Great article and reporting! Keep up the good work of keeping the public informed!
todd // Feb 26, 2020 at 8:26 am
This isn’t a story about the professor, this is a story about the deans and the administration who let this behavior become normal dating back to 2002. Now, all of a sudden, they are interested in becoming “loyal fiscal stewards.” The administrators signed off on these activities and looked the other way. This reflects poorly on those administrators, don’t be sidetracked by some professor.
Anonymous M. // Feb 26, 2020 at 6:58 am
Hopefully they will investigate all of the negative comments on his teaching including harassment, sexism, and inappropriate comments (among much more). Hopefully they see the link that if one claim is true the other ones are most likely true too.
Anonymous Pleb // Feb 25, 2020 at 9:09 pm
Interesting… I wonder if someone up above decided it was time to write this such article to let him and his organization go.
Mrs.DeBerg // Feb 25, 2020 at 7:31 pm
He didn’t share this with me. Where’s the love?
Lonna // Feb 25, 2020 at 5:53 pm
Did he really think he would never be caught? Sad! Especially, an accounting instructor! Shame on him! Givrs those of us who graduated at CSU, Chico a bad name! We need honest instructors!
Anonymous Andy // Feb 25, 2020 at 2:48 pm
Glad to see someone is finally following up on his shady teaching.