Dental firm braced: Pay up, then get out!

Saturday, Aug. 5, 2006 | 8:09 a.m.

University regents took steps Friday to end UNLV's relationship with a private donor, but only after trying to collect the money the university is owed.

Regents voted Friday to give new President David Ashley a chance to force Gasper Lazzara, founder of the Florida-based Orthodontics Education Co., to make good on his promises to the university.

University lawyers are to file a breach of contract notice with Lazzara, who failed to make payments due to the university in July. They will file a second breach of contract notice in September if Lazzara doesn't make good on a $1.75 million gift payment.

The university had to file a similar notice in February to get Lazzara to pay the first $1.75 million.

Lazzara had promised to pay UNLV $3.5 million to start an orthodontics program. He also agreed to pay UNLV $30,000 for every student who went through the program and agreed to work in his clinics. The total deal was to bring UNLV $40 million over 30 years.

If Lazzara balks, however, UNLV might be powerless to enforce the contract because Chancellor Jim Rogers said it contained no protections for the university.

The decision to pursue Lazzara came after exasperated regents voiced displeasure at UNLV officials over several aspects of the deal, including:

Regent Steve Sisolak pointed out that regents had been promised UNLV would use the initial gift as an endowment, not to offset the cost of construction on the orthodontics building, and had promised to not start the program until the money was in hand.

"If we can't count on the information that comes before us being accurate, how can we make decisions?" Sisolak said. "And it is clear that this information could not be trusted and that UNLV knew about it long before."

Regent Chairman Bret Whipple broke off Sisolak's questions, saying that he was "preaching to the choir."

"You've identified the problem, assist me in finding the cure," Whipple told Sisolak.

Regent Jason Geddes, the newest member of the board, recommended that the finance and budget committee establish a policy requiring an independent review by Nevada System of Higher Education legal and accounting staff of all private-public partnerships.

Regents also voted to have that committee consider whether all contract revisions should come before the board. Chancellor Jim Rogers had signed an amended contract with Lazzara - without board approval - after he missed his first payment. Rogers said he needed that flexibility for emergencies.

UNLV officials had counted on the money to cover costs for the orthodontics program, to help finish construction on an orthodontics building and to start dental specialties. Ashley said he was not satisfied with the plan to raise student tuition by $15,000, and had ordered Gerry Bomotti, vice president of finance, to look at alternatives.

The School of Dental Medicine came under fire as well for a cheating scandal in its inaugural class disclosed by the Las Vegas Review-Journal .

Ten students were found to have stolen a faculty's password to sign off on the work they did on patients. Professors are supposed to check and sign off repeatedly on all patient care.

The students, members of the first graduating class, were allowed to graduate but must perform 1,500 hours of free dental work on low-income patients before they receive diplomas.

Several regents believed the students should have been expelled.

Regents voted to have system attorneys and the academic affairs committee review student disciplinary procedures at the dental school to see if any changes are necessary. Current policy does not allow regents to change a disciplinary decision unless the student appeals.