Thanks for visiting TopUniversities.com today! So that we can show you the most relevant information, please select the option that most closely relates to you.
Thanks for sending your response.
Your input will help us improve your experience.You can close this popup to continue using the website or choose an option below to register in or login.
Home>Blog>MBA Blog>Former Columbia GSB Adjunct Professor Faces Fraud Charges: MBA News
Former Columbia GSB Adjunct Professor Faces Fraud Charges: MBA News
A former adjunct professor at Columbia Business School, Gregory Rorke, is facing two fraud charges in relation to an alleged scheme to defraud US$3 million from more than 30 investors. Rorke, 60 years old, is also an MBA alumnus of Harvard Business School.
If found guilty, the respective wire and securities fraud charges carry maximum sentences of 20 years each and a potential fine of US$5 million.
Over a 15-year period of attachment to Columbia GSB, Rorke “taught turnaround management, bankruptcy and restructuring in the MBA program,” according to the Securities and Exchange Commission (SEC). The SEC added that Rorke’s MBA teaching and prior expertise focused on “turning around troubled companies.”
He is now alleged to have duped investors into making investments in a convertible debt offering in a computer software company, Navagate Inc. As the principal owner and cofounder, Rorke is understood to have solicited investments and was actively involved in its daily management.
“As alleged, Gregory Rorke grossly misrepresented his character and financial stability to investors, whom he then defrauded of millions of dollars," said US Attorney, Preet Bharara, in announcing the fraud charges.
Should business education be paying more attention to issues of ethics and philosophy?
Accused emphasized his links to Columbia Business School
Rorke joined the faculty at Columbia Business School in 1997 but is no longer attached to the school. However, it appears that he may have deliberately used his links to a reputable institution to curry good favor with investors.
“Rorke emphasized that he was an experienced businessman and former professor at Columbia Business School,” reads a further statement for the SEC. Indeed, Navagate’s website gives the impression that he remains on the faculty at Columbia GSB when, in fact, he left in 2012.
However, with the allegations dating back to December 2009, the fraud charges do overlap with his time at Columbia Business School.
Navagate case alleges Rorke navigated his way through years of deception
Rorke is said to have issued a personal guarantee that used assets solely owned by his wife – and who would therefore be under no obligation to make good on Rorke’s guarantee.
He is also accused of failing to disclose Navagate’s tax liabilities to investors and then subsequently lying about paying them off.
When investors started to demand repayment or threaten legal action in 2012, Rorke allegedly sought to qualm their apprehension:
“Rorke forwarded an email purporting to be from a representative of Hong Kong Shanghai Bank Corporation (HSBC), which falsely stated that HSBC had just signed a multimillion-dollar contract with Navagate when, in truth and in fact, the email appears to have been a complete fabrication,” reads the Complaint released by the US Department of Justice.
Another man, Gregory Osborn of broker-dealer Middlebury Securities LLC, was also charged in connection with the Navagate case. All allegations remain unproven at this stage.
Deceiving investors has also led to the prosecution of a former associate dean of MIT Sloan. Back in August, Gabriel Bitran agreed to plead guilty to running a hedge fund scam along with his son, another Harvard MBA graduate.
Tim is a writer with a background in consumer journalism and charity communications. He trained as a journalist in the UK and holds degrees in history (BA) and Latin American studies (MA).
Former Columbia GSB Adjunct Professor Faces Fraud Charges: MBA News
By Tim Dhoul
Updated November 6, 2014 Updated November 6, 2014A former adjunct professor at Columbia Business School, Gregory Rorke, is facing two fraud charges in relation to an alleged scheme to defraud US$3 million from more than 30 investors. Rorke, 60 years old, is also an MBA alumnus of Harvard Business School.
If found guilty, the respective wire and securities fraud charges carry maximum sentences of 20 years each and a potential fine of US$5 million.
Over a 15-year period of attachment to Columbia GSB, Rorke “taught turnaround management, bankruptcy and restructuring in the MBA program,” according to the Securities and Exchange Commission (SEC). The SEC added that Rorke’s MBA teaching and prior expertise focused on “turning around troubled companies.”
He is now alleged to have duped investors into making investments in a convertible debt offering in a computer software company, Navagate Inc. As the principal owner and cofounder, Rorke is understood to have solicited investments and was actively involved in its daily management.
“As alleged, Gregory Rorke grossly misrepresented his character and financial stability to investors, whom he then defrauded of millions of dollars," said US Attorney, Preet Bharara, in announcing the fraud charges.
Accused emphasized his links to Columbia Business School
Rorke joined the faculty at Columbia Business School in 1997 but is no longer attached to the school. However, it appears that he may have deliberately used his links to a reputable institution to curry good favor with investors.
“Rorke emphasized that he was an experienced businessman and former professor at Columbia Business School,” reads a further statement for the SEC. Indeed, Navagate’s website gives the impression that he remains on the faculty at Columbia GSB when, in fact, he left in 2012.
However, with the allegations dating back to December 2009, the fraud charges do overlap with his time at Columbia Business School.
Navagate case alleges Rorke navigated his way through years of deception
Rorke is said to have issued a personal guarantee that used assets solely owned by his wife – and who would therefore be under no obligation to make good on Rorke’s guarantee.
He is also accused of failing to disclose Navagate’s tax liabilities to investors and then subsequently lying about paying them off.
When investors started to demand repayment or threaten legal action in 2012, Rorke allegedly sought to qualm their apprehension:
“Rorke forwarded an email purporting to be from a representative of Hong Kong Shanghai Bank Corporation (HSBC), which falsely stated that HSBC had just signed a multimillion-dollar contract with Navagate when, in truth and in fact, the email appears to have been a complete fabrication,” reads the Complaint released by the US Department of Justice.
Another man, Gregory Osborn of broker-dealer Middlebury Securities LLC, was also charged in connection with the Navagate case. All allegations remain unproven at this stage.
Deceiving investors has also led to the prosecution of a former associate dean of MIT Sloan. Back in August, Gabriel Bitran agreed to plead guilty to running a hedge fund scam along with his son, another Harvard MBA graduate.
This article was originally published in November 2014 .
Want more content like this Register for free site membership to get regular updates and your own personal content feed.
Tim is a writer with a background in consumer journalism and charity communications. He trained as a journalist in the UK and holds degrees in history (BA) and Latin American studies (MA).
Share via
Share this Page
Save