An MSU trustee has found himself submerged in court battles against accusations of fraudulent business practices.

Trustee Randall Pittman, his associate Robert Lane and their company, Forest Group Inc., were found liable in 2000 on multiple counts of fraud in an Illinois civil case, according to court documents obtained by The State News.

The court decision by the 1st Judicial District Appellate Court of Illinois came about a year before Gov. John Engler appointed Pittman to the board.

In February, Pittman, a Republican, replaced Democrat Robert Weiss, who was appointed to a Genesee County judgeship.

Engler spokeswoman Susan Shafer said the governor's office routinely conducts background checks on all appointees but said she couldn't comment specifically on Pittman.

MSU spokesman Terry Denbow said he had not heard of the court case and could not comment.

The Illinois appeals court sent the case back to circuit court after it ruled the $1,040,040 judgment Pittman, Lane and Forest Group were to pay Dr. Galo Tan and several other Forest investors was too high. A spokesman for Pittman said the case is far from being decided and isn't a reflection on the trustee's business career.

"He has had a very long and very distinguished business career," said John Truscott, who Pittman asked to speak on his behalf. "We believe in the end if he has a fair hearing and we get to present all the information, this won't be an issue at all."

Weiss, now a probate judge, said he was unaware of the findings against his successor on the board, but defended the Ann Arbor Republican.

"Yes, I would think the person's reputation is obviously important," Weiss said. "Trustee Pittman seems to have a viable reputation to me."

But Pittman's business practices again were called into question recently by MedCell Biologics Inc. after that company created a joint venture with one of Pittman's businesses.

MedCell Biologics Inc. attorney Pat McCullough said his company plans legal action against Pittman and several other investors for failing to inform them of what they see as prior questionable business practices, including the case in Illinois.

"I think that before the transaction that was entered by my client, all of these things were important," McCullough said. "He said there was nothing to worry about because he was a trustee."

Truscott said MedCell's complaints are the result of "personal vendetta" against Pittman. He said a high-ranking MedCell official has served jail time for questionable business practices and also misrepresented his academic credentials.

"You can't just allow a disgruntled person to display their views," Truscott said. "Attorneys like this are just trying to lash out against opponents and hurt them. That one's a pretty bogus deal."

Truscott said Pittman is a bright and "down-to-earth" man. Pittman donated $6 million to MSU in September and is a regular donor to other university projects, including athletics.

"He's one of the brightest guys I've ever met," Truscott said. "He's had thousands of transactions, and just because one goes to court - that's a pretty good track record."

The Illinois case involves a business venture Pittman, Lane and Forest Group made in 1991 with a drug-testing lab called the American Institute of Toxicology. Plans called for the lab to create partnerships with a network of other labs. The American Institute of Toxicology would market the labs' services, court records said.

But Pittman and Lane eventually amended the agreement, requesting "interim management fees" and purchasing a lab for $500,000, which was in violation of the original agreement, according to the court document. Both men also did not tell one of their partners about the purchase until after the deal, the document said.

MSU-Detroit College of Law Professor Mae Kuykendall urged caution when interpreting the case. She said it is too early to determine how serious the liabilities against Pittman are since there are several types of fraud with varying degrees of severity.

"Everybody goes into it wanting money and they're expected to have fiduciary duty," Kuykendall said. "That fraud is not necessarily evil fraud - this is more like a dispute among investors."

Kristofer Karol can be reached at karolkri@msu.edu.