Testimony Reveals Possible Fraud by Butler - KCBD NewsChannel 11 Lubbock

11/14/03

Testimony Reveals Possible Fraud by Butler

On Friday, the prosecution brought up examples of how Butler may have swindled thousands of dollars from Texas Tech Health Sciences Center.

Testimony revealed that while Butler was employed by the HSC, he arranged to do clinical studies for two pharmaceutical companies. There were paper trails of split contract agreements, where companies would pay Butler separate from the HSC. Butler was conducting his studies using TTU facilities.

Butler was making at least $300,000 on the side. Those payments were either wired to him or checks were sent to his house. Both companies testified that split contracts were unusual. However, the defense argued if the contracts were unusual, why weren't they reported by the companies?

Instead, one pharmaceutical company testified that contracts would often go through its legal department. But the final testimony from the Internal Medicine Chairman at the HSC, Dr. Neil Kurtzman, said it is policy that the Board of Regents approve any outside research and that all payments should go through TTUHSC and not through Dr. Butler.

Testimony continues next week.

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