Siena Heights University Reaches Settlement in Whistleblower Lawsuit Involving Former CFO

Siena Heights University, a Catholic school in Michigan, recently settled a whistleblower lawsuit with its former CFO, Debi Andrews. This development comes just weeks after the university announced it will close at the end of the 2025–2026 academic year due to financial struggles.

Andrews filed her lawsuit in April 2025, claiming she was fired for refusing to mislead the board about the university’s budget. She also encouraged a colleague to report sexual harassment by the university president, Douglas Palmer. The details of the settlement are private, and neither side has publicly commented.

Andrews, who started working at the university in February 2024, alleged that she found significant financial irregularities. She pointed out questionable budget proposals and misuse of funds meant for athletics. Her concerns about transparency reportedly led to her being placed on unpaid leave last summer.

The lawsuit also accused the then-HR director, Fran Johnson, of making false claims about Andrews, suggesting she had inappropriate relationships with staff. This accusation was part of what Andrews described as a retaliatory internal investigation.

Siena Heights has not commented on specifics but stated that it conducts thorough reviews for personnel decisions and is committed to a respectful workplace culture.

The legal issues coincided with the university’s declining finances. In June, Siena Heights announced it would close due to enrollment drops, demographic changes, and rising costs. As of now, it serves around 1,700 undergraduates and fewer than 200 graduate students.

Founded in 1919 by the Adrian Dominican Sisters, Siena Heights has long been affiliated with the Catholic community in southeastern Michigan. The Sisters have become influential in philanthropy and impact investing, focusing on social and climate justice. This trend in responsible investing reflects a broader movement within religious institutions to align financial strategies with ethical values.

Since 2020, at least 80 U.S. nonprofit colleges have closed or merged, highlighting the significant challenges facing higher education. Siena Heights is now part of this concerning trend.

In response to the closure, Ashland University in Ohio is offering support to affected students, including credit transfer guarantees and financial counseling.

This case underscores the challenges CFOs face in troubled educational institutions, where financial transparency is crucial. As experts in finance note, the pressure for accountability can lead to complex legal battles, particularly in sectors under significant scrutiny.



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