Associate VP at USC Resigns After Indictment on Tax Charges

Associate VP at USC Indicted on Tax Charges, Resigns Amid Ongoing Investigations

In a surprising turn of events, Columbia, S.C. has found itself at the center of a federal investigation involving an associate vice president from the University of South Carolina (USC). Last week, the U.S. Department of Justice announced that Mari Ross-Alexander, who recently took on the role of Associate Vice President for Student Health and Well-Being, has been indicted for failing to pay employment taxes to the Internal Revenue Service (IRS).

Quick Exit from USC

According to a university spokesperson, Ross-Alexander has resigned from her position at USC, with her last day set for October 23. Her departure comes just months after she started work at the school in July 2023, where she was responsible for overseeing counseling services and substance abuse programs.

Details of the Indictment

The indictment has raised eyebrows among the university community, especially as it surfaced in the school’s own student newspaper, the Daily Gamecock. Ross-Alexander is facing an alarming 11 counts of “willful failure to account for and pay over employment tax.” Each of these charges carries a maximum penalty of five years in prison and fines up to $250,000 or twice the amount lost due to the alleged offense.

What’s even more concerning is that the indictment traces Ross-Alexander’s alleged improprieties back to her time as the owner and president of the Ross Behavioral Group, a mental health counseling center in Tennessee, where she worked from 2011 to 2023.

The Allegations

The U.S. Department of Justice claims that between 2015 and 2021, Ross-Alexander collected federal taxes from her employees’ wages but failed to hand over that money to the IRS. In fact, she issued forms and tax statements to her employees that falsely indicated their withheld wages had been paid to the government.

All told, the indictment notes that Ross-Alexander allegedly failed to pay over more than $1 million in taxes. Alarmingly, the IRS had begun reaching out to her about these unpaid taxes as far back as October 2018. Despite several attempts to resolve the outstanding payments, it seems no action was taken.

Paycheck Protection Program Complications

Adding another twist to the story, Ross-Alexander’s company received over $130,000 in a Paycheck Protection Program (PPP) loan in May 2020, meant to help businesses weather the financial storm during the COVID-19 pandemic. While this financial aid was intended to cover employee wages and taxes, it appears she continued to withhold taxes from employees and neglected to pay the IRS on their behalf.

Responsibility for Finances

According to the indictment, Ross-Alexander was the only person responsible for the financial activities of the Ross Behavioral Group, raising questions about not just her actions but also her adherence to ethical standards as an educational leader.

This whole situation has certainly cast a shadow over her brief tenure at USC and raises significant concerns about transparency and accountability within academia. With over 10 years of experience in higher education—including her prior role as associate vice chancellor of student affairs at the University of North Carolina at Charlotte—one has to wonder how it all came to this.

Impact on the University Community

As the USC community processes this unsettling news, it highlights both the importance of oversight in financial dealings and the need for educators to serve as trustworthy role models. While the investigation unfolds, students and faculty are left with an uncertainty that has become all too familiar in the world of higher education.

In the coming weeks, more information is likely to emerge, and the university will have to navigate the impacts of this development carefully. For the community at USC, it serves as a reminder that even in the most respected institutions, vigilance and ethical behavior are paramount.