NASHVILLE, Tenn. (WTVF) — The former financial director of Tennessee State University is claiming in a new lawsuit against the school she was fired this fall because she wouldn't commit perjury for scholarship money.
Tennessee State University has been under a microscope for the last few weeks after school officials publicly admitted they couldn't make payroll and laid off more than 100 employees. In a meeting before Thanksgiving, the school told the TSU Board of Trustees that without financial cuts the school would run a $46 million deficit by the end of the year.
Former Metro Council person Tanaka Vercher worked at TSU for 21 years. However, the lawsuit stated this fall fell into turmoil for her when it came to distributing financial aid money.
You can read the full lawsuit by tapping this link.
By federal law, TSU has to verify students' credentials in what's called a reconciliation process. Those credentials include a high school diploma or an equivalent certificate. State auditors notified Vercher that TSU had previously provided student aid money to students who did not qualify because they lacked proof of those documents.
"The auditors advised Ms. Vercher to verify that students for whom funds are requested have a valid high school diploma or its equivalent during the reconciliation process before requesting disbursement of government funds for those students," her lawyer wrote in the lawsuit.
Students who don't meet those qualifications cannot receive state or federal financial aid. The reconciliation process is supposed to allow TSU to find students who aren't eligible before any distribution of financial aid.
That is when Vercher wound up in a meeting with school officials in late August. She told them she couldn't complete the financial aid process until they checked student qualifications. She said not completing the process would violate federal law, the lawsuit stated.
"During this meeting, Ms. Vercher estimated that more than 20% of TSU students had been admitted without proof of a high school diploma or its equivalent. Her refusal to request funds for these students meant a loss of approximately $7 million in available cash to TSU. Mr. Briggs — from a third-party consulting firm meant to help TSU get its finances under control — repeated that TSU could not wait until the reconciliation process was complete in October for distribution of these funds."
Vercher said in the lawsuit she was fired the very next day. The lawsuit said TSU officials didn't give her a reason for termination after excellent performance reviews. Vercher said the only conclusion she could draw was retaliation for not asking for government funds she knew the school wasn't entitled to have.
In the lawsuit, Vercher is asking for back pay, lost benefits and pension, compensatory damage and attorney fees.
TSU's response
"Tennessee State University has been made aware of the lawsuit filed yesterday and does not comment on pending litigation. We are committed to upholding the highest standards of integrity and will address the matter appropriately as it progresses. All further questions should be directed to the State Attorney General's Office."
Do you have more information about this story? You can email me at emily.west@newschannel5.com.
There are still so many families in East Tennessee hurting following the floods from Hurricane Helene in September. That made this year's running of the Santa Train extra special for many families in the northeast part of the state. This special Santa Express has been making an annual run in part of Appalachia for over 80 years.
-Lelan Statom
