Illinois State University no longer expects to see any of the $3 million that former Reditus Labs CEO Aaron Rossi pledged to an Athletics building project, according to records newly obtained by WGLT.
The status of that pledge was one of the unanswered questions left after WGLT reported on Rossi’s relationship to Athletics earlier this year – including a lavish donor junket to Indianapolis on one of Rossi’s private planes. The controversy led to the resignation of Athletics Director Kyle Brennan.
Soon after that Indianapolis trip, Rossi pledged $3 million toward the new Athletics Indoor Practice Facility. A few weeks after that, Rossi was indicted on federal tax charges – just one of the many legal issues he faces. Rossi has pleaded not guilty and has generally denied wrongdoing.
ISU never publicly acknowledged Rossi’s pledge. WGLT made multiple inquiries about the status of the pledge but was told “the University does not comment on donor matters.” WGLT’s March 9 request for records related to the pledge was also denied, with the university arguing it would be an “unwarranted invasion of personal privacy” and that a donor’s personal financial information is exempt from the state’s open-records law, known as FOIA.
WGLT appealed ISU’s withholding of records to the Illinois attorney general’s Public Access Bureau, which sided with WGLT in a determination letter issued Sept. 12. Bureau chief Steve Silverman wrote that ISU “improperly withheld certain records responsive” to WGLT’s request.
The Illinois attorney general’s office concluded that “the public interest in disclosure of records related to the donation pledge outweighs the right to privacy.” It pointed to Rossi’s business, Reditus, previously serving as a university vendor – providing COVID tests during the pandemic.
“Mr. Rossi's former company’s business relationship with the University, the amount of the pledge, and the pending criminal charges and civil lawsuit – as well as other factors that cannot be disclosed without revealing information that the University provided to this office confidentially – amplify that public interest while significantly diminishing the right to privacy. The circumstances surrounding the records in question are a far cry from a routine donation by an average (alum) or even a substantial gift by a wealthy philanthropist,” Silverman wrote.
Indeed, one of Brennan’s top deputies – Mark Muhlhauser – told ISU’s fundraising operations chief in December 2021 that Rossi was a “prospect we identified earlier this year from his companies work with us on COVID testing,” according to an email obtained by WGLT.
After the attorney general’s determination letter, ISU on Monday released multiple documents to WGLT for the first time. One of the documents was Rossi’s Donor Gift Agreement, signed Jan. 26, 2022, pledging three $1 million payments by June 30 of 2022, 2023 and 2024 in support of the Indoor Practice Facility.
“A donation pledge is a voluntary undertaking rather than a personal characteristic or condition,” Silverman wrote. “Although a sizable donation pledge may suggest that a prospective donor has access to certain resources or has attained a general financial status, it does not reveal annual salary, net worth, or other ‘detailed personal income information.’ Accordingly, this office concludes that details about the donation pledge are not exempt from” the state’s FOIA law.
The newly released records also show ISU’s top fundraising officials conceding Rossi’s pledge would not be fulfilled. ISU’s fundraising chief, Pat Vickerman, wrote to one of his top deputies Jan. 16, 2023, that Rossi’s gift should be “closed out” and that the Rossis should not be invited to any events for a high-dollar donor-recognition group known as the 1857 Society. In response, fundraising staff said they would “write this pledge off,” the email records show.
WGLT first reported Rossi’s $3 million pledge in March, though the status of the pledge at that time was unclear; ISU declined to confirm whether it had received any of the money yet. Given Rossi’s legal problems, it was unclear if he’d even be allowed to make a 7-figure donation to any institution, even if he had the money. A judge has restricted how he spends his money.
The newly released records answer the question.
WGLT asked the attorney general’s Public Access Bureau for a Request for Review on March 17. Generally, they choose one of three outcomes after reviewing the dispute: No action is necessary, issue a determination letter to resolve the dispute, or issue a binding opinion to resolve the dispute. Binding opinions are rare. The Sept. 12 decision was a non-binding determination letter.
An interim athletics director, Jeri Beggs, is now leading the Athletics department. ISU has planned to hire an external firm to review spending in the department.
A dedication ceremony for the recently finished Indoor Practice Facility is set for 6 p.m. Saturday.
WGLT is part of ISU’s College of Arts and Sciences and receives financial support from the university. ISU administrators do not have any role in WGLT’s news coverage.
