Hong Kong Harvard Club To Sue Chik

The Harvard Club of Hong Kong has decided to press charges against Steve Chik, its former President, for allegedly diverting money raised by the club to companies affiliated with him.

Harvard administrators said they were concerned by the accusations but can do little to interfere with any of the University's nearly 200 alumni clubs.

"The [Hong Kong] club has a great deal of independence and has to make [its own] decisions," said John P. Reardon, Jr. '60, executive director of the Harvard Alumni Association.

More than $100,000 raised by the club through dances and annual dues has vanished--funds that are now believed to be in Chik's personal accounts, according to Reardon.

Over a year ago, Chik came under University scrutiny when the first installment in a million gift from Hong Kong entrepreneur York Liao disappeared en route to Cambridge. Chik finally repaid Harvard last March, writing a check for $385,000--an inexplicable $52,000 more than he actually owed.

But while Chik settled his account with the University, he still owes the club--which ousted him in a special election last March--more than $100,000.

In a meeting of fewer than 40 of its nearly 300 members last week, the club voted to press charges against Chik.

Reuben T. Mondejar, an officer of the club, said the organization would pursue civil charges against Chik, but it might prove too costly to prosecute him criminally.

"If Steve Chik puts up resistance, the costs could be more than double the money we want returned," Mondejar said. He added that though $100,000 is still outstanding, Chik has given the club more than 80 percent of the money originally missing.

"I feel betrayed for what he has done to the club and the bad name he has brought to the club," Mondejar said. "We have a duty to reform him."

According to Reardon, the club remains separate from the University, and the incident has not compromised the Harvard name in any way.

And, University administrators said, they have little control over their clubs around the globe.

"We have to count on the club having good procedures." President Neil L. Rudenstine said.

The University's laissez-faire policy toward its clubs, however, is coming

under review in light of the alleged theft inHong Kong, Reardon said.

"We had decided...to push harder on clubs," hesaid.

But, Reardon added, most clubs do not handlelarge amounts of money and do not have the sameaccess to University donations as the Hong KongClub.

Harvard administrators plan to devise newoperating standards for the clubs and then presentthem to the regional directors for approval.

"We have to look very hard at the issue ofby-laws, how boards are elected," Reardon said."We have to get the regional directors and clubpresidents to buy in."

He said that he is considering changing thefundraising process within clubs. Harvard willcontinue to permit them to collect small funds forscholarships but may change the way theorganizations deal with larger amounts, accordingto Reardon

under review in light of the alleged theft inHong Kong, Reardon said.

"We had decided...to push harder on clubs," hesaid.

But, Reardon added, most clubs do not handlelarge amounts of money and do not have the sameaccess to University donations as the Hong KongClub.

Harvard administrators plan to devise newoperating standards for the clubs and then presentthem to the regional directors for approval.

"We have to look very hard at the issue ofby-laws, how boards are elected," Reardon said."We have to get the regional directors and clubpresidents to buy in."

He said that he is considering changing thefundraising process within clubs. Harvard willcontinue to permit them to collect small funds forscholarships but may change the way theorganizations deal with larger amounts, accordingto Reardon