Kogod School of Business Professor John Katkish is contesting a $50,000 fine for moving more than $240,000 out of his clients’ trusts and holdings from his former business.
The Maryland Securities Commissioner’s Office, part of the Maryland Attorney General’s Office, issued the fine on March 1 for funnelling money out of his former company First Management Group Investments, Inc. (FMGI) into his personal accounts as well as others.
FMGI gave financial advice about assets and real estate to its clients, according to Katkish.
This money was used to make payments to various places including BMW of Rockville and American Express through wire transfers and checks, according to a document from the Maryland Attorney General’s office.
The misdirected money has been repaid through settlement or direct repayment,
according to the document.
AU is aware of the situation and discussed it with him, Katkish said.
“The University has been extremely supportive and attentive to this matter, as best they can,” Katkish said.
Katkish, who is now an Executive-in-Residence in Kogod, has taught at the University since at least 2006, according to student evaluations.
AU administration declined to comment on the situation. The University’s policy is to not comment on personnel matters, said Maralee Csellar, associate director of media relations.
Kogod Dean Michael Ginzberg also declined comment.
“I need to learn more about the situation,” Ginzberg said in an email.
Katkish said he has not paid the $50,000 fine and is currently working with legal representation to remove it because the events outlined in the document are inaccurate. He also said the initial investigation began because of a disgruntled employee.
Katkish could legally file an appeal 30 days after March 1, according to David Paulson, spokesman for the Maryland Attorney General’s Office. However, Katkish did not take action during this time and thus gave up his right to appeal the fine, Paulson said.
“There was a failure to file an answer in a timely manner,” Paulson said.
However, Katkish said he did not appeal or respond to the order because his company was closing and he was coping with the recent death of his wife.
Katkish said he will continue to fight the fine.
“What they have is a laundry list of accusations,” Katkish said. “There is a lot of smoke and mirrors, mistruth and misrepresentation in the order.”
