Donor could face federal trial for price fixing

By Lisa Koivu

Daily Staff Reporter

Retail mogul A. Alfred Taubman, one of the University's largest benefactors, has come under fire from the courts after allegations of price fixing surfaced involving the New York auction house he once headed.

Taubman, who retired from Sotheby's auction house in February, may face federal charges for an alleged price fixing scheme since 1993 involving Sotheby's and Christie's auction houses - which control 95 percent of the market.

Sotheby's Holdings Incorporated CEO, Diana Brooks, along with the auction house, pleaded guilty to fixing commission prices and fees last week.

Brooks indicated that one of her superiors knew of the dealings.

Taubman's Bloomfield Hills-based corporation manages and operates some of the nation's premiere shopping facilities.

A University alum, Taubman has donated many large gifts to the University, the latest being $30 million given to the University's College of Architecture and Urban Planning in June 1999, which led to the college's renaming in his honor.

Judy Malcolm, director of development communications and donor relations, said Taubman's donations have benefited many areas of the University.

She said the nearly $37 million in funds donated over the years have benefited scholarships in the financial aid office, supported the College of Literature, Sciences and the Arts and lead to the creation of the Taubman Health Care Center and the Taubman Medical Library.

Taubman is one of the key people under suspicion for price fixing at Sotheby's, although he has not been charged.

University President Lee Bollinger said the University had no idea about the suspicions surrounding Taubman when the architecture and urban planning school was named for him.

"The school was named before any of this became public," Bollinger said. "Mr. Taubman is one of the most generous people ever in the history of the University. His $30 million gift is one of the largest gifts ever donated to a university and the largest ever given to a school of architecture."

Bollinger said there is no indication that any of the money donated to the University was "tainted."

Feagin said the University normally has good relationships with those who donate large sums of money.

University Regent Rebecca McGowan (D-Ann Arbor) said she was shocked when she heard about the allegations surrounding Taubman.

"This came as a complete surprise. I don't think anybody at the University knew this was going on," McGowan said.

McGowan said the suspicion around Taubman has no bearing on any of the gifts he has given to the University.

"How (the suspicion) weighs on his gift to the University is not appropriate," McGowan said.

Taubman has also given large donations to Harvard and Brown universities. Brown's public policy school is named for Taubman and at Harvard's Kennedy School of Government, the Center for State and Local Government is also named for him.