The tax-exempt charity founded by Jerry Sandusky, the former Penn State defensive coordinator charged with 40 counts of abusing young boys, paid him $456,000 from 2000 to 2008, according to Deadspins lengthy look at the organizations federal tax filings.
The compensation was in the form of an annual consulting fee of $57,000 paid to Sandusky, Deadspin reported. He was paid more than some employees listed in the filing.
According to a statement on the Second Miles Web site, Sandusky informed the organization in November 2008, that he had learned he was being investigated as a result of allegations made against him by an adolescent male. Although he maintained there was not truth to the claims, the statement continued, the decision was made to separate him from all our program activities involving children.
The structure of Second Mile includes a state board of directors (among them, Matt Millen, a former Penn State linebacker who is now an ESPN college football analyst), a Southcentral board of directors (for its Camp Hill, Pa., office) and a Southeast regional board (for its King of Prussia, Pa., office).
But it also has an honorary board whose members include Arnold Palmer, Cal Ripken Jr., the actor Mark Wahlberg, the former Notre Dame coach Lou Holtz and Eagles Coach Andy Reid. According to the Baltimore Sun, Ripken and Holtz have asked that their names be removed from the honorary board. Other reports said that Second Mile had removed the names of all its board members from its Web site.
Separately, Moodys Investors Service warned Friday that Penn States Aa1 bond rating could be downgraded because of the child sex abuse scandal.
Over the next several months, Moodys said in a press release, it said it will evaluate the potential scope of reputational and financial risk arising from the charges against Sandusky as well as those against the universitys athletic director, Tim Curley, and a university administrator, Gary Schultz, for perjury and failure to report to authorities what they knew of the allegations involving Sandusky. Curley is on administrative leave. Schultz will retire. They have denied the charges.
Penn States strong bond rating reflects very strong student demand and its consistent ability to draw out-of-state students who pay high tuition rates, Moodys said.
