The Maryland state Ethics Commission is investigating...

The Maryland state Ethics Commission is investigating whether a $90,000 second mortgage arranged by Lew Perkins, University of Maryland athletic director, through the athletic department’s fund-raising department is permissible, according to the Baltimore Sun.

The Maryland Educational Foundation, also known as the Terrapin Club, agreed 15 months ago to the mortgage after there were cost overruns in the $397,000 house Perkins built near the College Park campus. The foundation’s purpose is to raise money for athletic scholarships.

Last month, the Sun reported that Perkins had not disclosed the existence of the mortgage on a financial disclosure form required of top-level state employees. Perkins said his failure to include the mortgage was an oversight, and his attorney, Michael J. Kovach, said the disclosure statement would be amended.

At issue now is whether the public ethics law prohibits officials from accepting gifts from persons known to be “engaged in activities which are regulated or controlled by his agency.”