KNOXVILLE, Tenn. — A now former employee of the fundraising University of Tennessee Foundation Inc. faces federal charges that allege he used donor checks to deposit $70,000 into personal financial accounts.
Andrew Shafer has been indicted on two counts of wire fraud in the Eastern District of Tennessee in Knoxville. The FBI investigated the case.
The indictment alleges Shafer twice used donor checks meant for the University of Tennessee College of Law. At the time, he was authorized to accept donations on behalf of the college, according to the indictment.
On Sept. 13, 2021, using a $50,000 check from an alumnus identified as "C.C.," Shafer used the internet "to transmit an image of such check to Fidelity Investments, thereby making the fraudulent representation that Shafer was legally entitled to possess for his own use the $50,000 in donated funds and causing deposit of said funds into Shafer's own Fidelity Investments account," the indictment states.
On Nov. 4, 2021, records state, he did something similar with a $20,000 check from a donor to the College of Law identified as "A.M."
Shafer transmitted an image of that check -- dated for the same day -- to his TD Ameritrade account, leading investment officials to assume it was his own money, the indictment states.
He no longer works at the foundation, officials said.
"The University of Tennessee Foundation discovered potential misuse of donated funds by a former employee and took immediate action by contacting the appropriate legal authorities," the foundation said in a statement to WBIR. "The actions of the former employee do not represent the values of the Foundation or the University of Tennessee.
"We have fully cooperated with the investigation and will continue to do so. At this time, UTFI cannot comment further as the investigation is ongoing.”
Assistant U.S. Attorney Frank Dale Jr. is prosecuting the case, which is being handled by U.S. Magistrate Judge Debra Poplin and U.S. District Court Judge Katherine A. Crytzer.
WBIR also sought comment from the foundation's legal counsel.
Attorney Rockforde D. King said in a statement this week the foundation has been cooperating with federal prosecutors.
When asked if an internal investigation was being conducted, King replied in an emailed statement: "The University of Tennessee Foundation Inc. does always maintain internal checks & balances to ensure the security, confidentiality, integrity and commitment to our donors and to the University of Tennessee System."
Shafer is represented by defense attorneys Richard L. Gaines and Bryce McKenzie. McKenzie said it's his practice not to comment on such matters.
Gaines said his client maintains his innocence and that defense attorneys were investigating the allegations on Shafer's behalf.
Shafer joined the College of Law in August 2020 as senior director of advancement, leading fundraising efforts, the college announced at the time.
He's a UT grad and said that was a motivator in his decision to promote and assist the college.
He formerly was planned giving manager for the Nashville Symphony Orchestra, chief advancement officer of the Missionary Society of St. Paul the Apostle in New York and vice president for advancement at Aquinas College in Nashville.
