Averett University files lawsuit alleging former CFO spent millions from endowment

DANVFILLE, Va. (WDBJ) - Averett University has filed a lawsuit against its former Chief Financial Officer and investment firm.

The lawsuit alleges Donald Aungst and Global Strategic Investment Solutions colluded to spend around $20 million of the school’s endowment. The suit says they maxed out the university’s line of credit and didn’t get approval to borrow money.

A Target 7 report from last year details the school temporarily lowered pay for staff and cut programs.

The lawsuit says Aungst resigned after being confronted about the spending.

Averett says its endowment was less than $2 million in April of last year.