Temple University Rejects $55M Gift Amid Investigation

Temple University will terminate a $55 million gift from Christopher M. Barnett, an alumnus who is being investigated for financial crimes. The donation, announced last year as the university’s largest-ever gift, was meant to fund the College of Public Health, a dean’s position and the new 26,000-square-foot student basic needs center. 

Barnett graduated from Temple in 2010 and went on to found ABA Centers, which provide autism care, and ICBD Holdings, which oversees a variety of health-care companies. A probable cause affidavit unsealed late last week alleged that ABA Centers billed health-care benefit programs for medically unnecessary services, created fraudulent records to justify higher reimbursements and manipulated the health-care market by requiring employers to earn credentials with certain insurance programs so the company could bill services at higher rates. In the documents, officials alleged Barnett and another former executive used the money “to make extravagant purchases to support a lavish lifestyle, such as luxury automobiles and a private plane.” 

Barnett hasn’t been charged, according to The Philadelphia Inquirer. Temple President John Fry and Board Chair Mitchell L. Morgan said in a letter to the campus community that Barnett “strenuously denies and intends to defend vigorously” against the allegations. Barnett also resigned from the Temple board.

Steve Orbanek, a Temple spokesperson, said in an email that university leaders didn’t come to the decision lightly. Despite Barnett’s denial, he said, “due to the seriousness of the allegations, we believe this is the right decision for Temple at this time.” The university also plans to review smaller donations Barnett previously made, he added. 

Fry first announced the donation last year at the grand opening of a new 306,000-square-foot building for the College of Public Health, which was going to be named after Barnett. At the time, Barnett said he was motivated by funding cuts to public health initiatives and that he and his family wanted to “be the change we wish to see in the world.”

In the letter, Fry and Mitchell said they will continue to prioritize the College of Public Health and are “committed to ensuring that it remains on a strong upward trajectory.”

Barnett, along with his wife, Julie, was also the namesake for the new 26,000-square-foot Essential Needs Hub, which opened in mid-August. The hub will not be affected by the termination of the gift and retains full university support to continue running, Orbanek wrote.