The State - News from May 1, 1988

A state investigation into the alleged misuse of $1.13 million in Hastings School of Law trust and endowment funds ended with an agreement between the school and the state attorney general’s office. Under terms of the agreement, filed in San Francisco Superior Court, the school will pay restitution and establish a new trust for scholarships and loans, a spokesman for Atty. Gen. John K. Van de Kamp said. Hastings will establish a new $2.76-million trust fund for scholarships and student loans, including up to $1.61 million in restitution to students or former students who between 1973 and 1987 were improperly denied financial aid. In 1987, the attorney general’s Charitable Trust Section determined that the school’s trust and endowment funds had been improperly used to purchase real estate in San Francisco. The property had been purchased before 1980. Retired Court of Appeal Justice James B. Scott has been retained as special master to resolve differences over restitution claims.