Chicago-Maroon-10-10-12

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CHICAGO

MAROON The student newspaper of the University of Chicago since 1892

TUESDAY, OCTOBER 12, 2010 • VOLUME 122, ISSUE 5 • CHICAGOMAROON.COM

Sweating through the Chicago Marathon

SPORTS, p. 12

TRUSTEES

WOODLAWN

Trustee implicated in Ponzi scheme

Robust business brews south of 60th

By Asher Klein News Editor A civil lawsuit filed last week accused a University trustee of knowingly contributing $3.2 billion to a Minnesotabased Ponzi scheme. The trustee, Steve G. Stevanovich (AB ’85, M.B.A. ’90), was named as a defendant in the suit that claims he made $323 million in “false profits” from the scheme. The complaint was filed in Minnesota District Bankruptcy Court by the Petters Company, which was at the center of the scheme. Stevanovich donated $7 million to the University in December 2006, a gift that led to the expansion and renaming of the Stevanovich Center for Financial Mathematics. He was later elected to the Board of Trustees. In the suit, the company also names 22 other “feeder funds” Stevanovich is alleged to have run as part of the scheme. These investments were allegedly paid back, with interest, after others invested in the Petters Company, unaware that it was fraudulent. Thomas Petters, owner of the Petters Company, was convicted in the same

court in 2008 of orchestrating an estimated $40 billion Ponzi scheme over a 15-year period, involving a host of subsidiary companies including Petters, Ltd. Petters Company and Petters, Ltd., have been placed by the Minneapolis District Bankruptcy Court in trusteeship of Douglas A. Kelley, who is responsible for reclaiming the money Petters fraudulently gave away. “I’ve had to sue charities,” Kelley said in a Sunday article in the Minneapolis Star-Tribune referring to the Petters case. “I have investors who feel they’ve now been victimized twice. But the fundamental law in a Ponzi scheme is that the money was not Tom Petters’s to give away.” Kelley’s current suit against Stevanovich alleges that Stevanovich benefited substantially from illegal financial activity and that he was aware it was illegal. “Stevanovich received millions in false profits through his active and direct involvement in the Petters Ponzi scheme,” according to the October 8 complaint. A lawyer representing Stevanovich

TRUSTEE continued on page 3

By Asher Klein News Editor

Since opening in July at 63rd Street and Woodlawn Avenue, Robust Coffee Lounge has done brisk business. MATT BOGEN/MAROON

By Ella Christoph News Editor A sleek brick building with stainless-steel accents stands out on East 63rd Street at Woodlawn Avenue, surrounded by empty

STUDENT GOVERNMENT

lots and dilapidated apartment buildings. The street is empty, but inside the corner ground-floor unit, business is steady at Robust Coffee Lounge. A realtor by training, the owner Jake Sapstein first got the idea to

open a café and deli while showing condos at the building. Built in 1890, it had been gutted and redeveloped after 35 years of vacancy. Prospective buyers asked what was going into the first-floor retail units

ROBUST continued on page 2

CONSTRUCTION

Candidates chase votes in crowded CC race Midway construction paves the candidates have left a temporary mark support page “A. Wang is a Pillar of way for a more pleasant crossing By Jessica Sheft-Ason MAROON Staff A record 20 first-years are running to fill four open spots on Student Government’s College Council (CC), the second year in a row interest has increased for the positions. Almost a rite off fall quarter-—CC elections will be held this Thursday-—the 20

on the school, chalking and posting all over campus in order to gain the votes needed to win the crowded race. Candidates in the tightly contested election are resorting to both traditional and unconventional campaign tactics to gain an edge. First-year Angela Wang made a pun on her own name, titling her Facebook

Strength” in order to get some laughs and, hopefully, votes. Other jokes are printed on flyers around campus. First-year Tracy Xu said at a candidate meet-and-greet yesterday she simply decided to chalk outside the Regenstein, noting that, “the letters are bigger than you are.”

CANDIDATES continued on page 4

Banking on it

Riad Toufie Salame, governor of the Central Bank of Lebanon, speaks on Lebanon's financial success. DARREN LEOW/MAROON

By Crystal Tsoi News Staff A $6-million project to improve the safety and walkability of the Midway Plaisance is underway, as part of the University’s efforts to improve the continuity of campus south of the Midway. The Midway Crossings Project (MCP) consists of the reconstruction of two passageways, at South Ellis Avenue and South Woodlawn Avenue, as main thoroughfares for pedestrians. Originally slated to be fi nished this fall, the project is now scheduled for completion in spring 2011. Construction should be complete prior to the onset of winter, but landscaping will be completed in the spring. Main features of the project include the addition of emergency call stations and security cameras. Visibility will increase with waisthigh LED lighting poles as well as more overarching lighting. “The improved lighting acts as a deterrent,” project manager Desiree DiLucente said in an e-mail, adding that lighting is designed to keep energy expenditures to a minimum. An eight-foot sidewalk with a six-foot tree and grass buffer zone is designed to protect pedestrians from car traffic and make crossing the Midway a more pleasant

experience. “The project will allow more pedestrians to safely cross the Midway at the same time, improving flow and the pedestrian experience,” DiLucente said. According to DiLucente, the project will also include the planting of 19 trees and was designed to minimize the impact on bird migration patterns. “The shapes [will] visually evoke a floating bridge,” DiLucente said, making an allusion to the plans of Midway Plaisance architect Frederick Law Olmsted. In the original 1871 plans, Olmsted envisioned gondola-filled canals connecting Lake Michigan, Jackson Park, and Washington Park. Undertaken in partnership with the Chicago Park District and the Chicago District of Transportation, the project was originally conceived in 2 000 by community members as part of the Chicago Park District Midway Plaisance master plan. The University became interested in the proposal as the campus began to expand south. Over the course of 18 months, three community meetings were held by Alderman Leslie Hariston and one campus meeting was held by the University to solicit community and University feedback, DiLucente wrote. Local organizations like

MIDWAY continued on page 2


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