Resignation From Presidency of American University
Ladner came under increasing criticism for his high salary, lavish lifestyle, and his frequent travels to visit partnering universities throughout the world.
The website BenLadner.com was created by students at the University in 2002 to highlight these criticisms, specifically Ladner's salary. In September 2004, Ladner filed a complaint with ICANN, alleging that the website's prominent use of his name caused confusion for visitors, causing them to believe it to be his own personal website. ICANN ruled against Ladner, refusing to remove the domain name because Ladner's name had no commercial value.
In August 2005, The Washington Post reported on the opening of an investigation by the American University Board of Trustees into Dr Ladner's expenses. An anonymous letter to the board, later revealed to be from Ladner's fired driver Reginald Green, alleged that Ladner had improperly used University funds for personal expenses. Ladner was placed on administrative leave by the Board pending the outcome of the investigation. On August 25, he was suspended from his post. On October 10, 2005, The Board of Trustees of American University announced that he would not return to American University as its president. The Board upheld the accusations of excessive use of university money for private spending. However some board members still believe that Dr. Ladner was wrongly accused. While Dr. Ladner was never criminally accused of anything, the federal investigation is ongoing.
Ladner was given a $3.75 million severance package, causing two trustees to resign.
Former and current trustees, as well as current faculty and administrators, were called to testify at a March 2006 hearing by the U.S. Senate Finance Committee investigating fraud at nonprofit organizations.
On April 1, 2006, Harry Jaffe wrote an article published in the Washingtonian summarizing Ladner's reign and fall at AU, detailing expenses and the board of trustees' tussle in support and against the president of AU, including attorneys advice that there was no enforceable contract and that Ladner was terminated for "cause or dishonesty".
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