In early December 1997, a Hong Kong donor realized that a check for about $385,000 that he intended for University use hadn't made its way across the Pacific.

The donor, who University officials refused to name, had written the check in December 1996 to the Harvard Club of Hong Kong expecting that the money be turned over to the University.

But the University didn't receive it until March of this year, three months after officials began investigating the club. At that time, former club president Steven Chick delivered a check to Harvard for $423,000, according to current club President Aaron Tan.

What happened to the money during the intervening 16 months, whether other funds are missing and who might be behind this confusion are questions currently being investigated in an Ernst and Young audit.

From Kandinsky to Velasquez

Club members hope the auditors will answers these questions, but, in the meantime, some of them say their former president, who was ousted from the club's top post in emergency elections on March 5, could provide some answers.

Chick, who The Crimson telephoned a half dozen times over two weeks for this story, could not be reached for comment, but numerous club officials confirmed recent events.

When the University learned of the missing donation, officials attempted to contact Chick but were unable to reach him for several weeks, Tan said. In late January 1998, they notified the club's executive committee of the missing donation.

When Chick was finally reached, club officials said he refused to surrender club assets, including the only complete membership list, various financial records and the sole key to the club's post office box, where bank statements are sent.

In March, around the time he wrote a check to the University for $423,000, Chick finally turned over the club's financial documents to Ernst and Young. In April, he turned over the membership list.

On April 18, the club held official electionswhich placed Tan in the top spot and made GeorgiaBush treasurer. Eighty members voted in theelection, according to the club newsletter.

Bush said in a statement to members after theelection that she hopes "to make the Harvard Club[financial] accounts look less like a Kandinskyand more like a Velasquez."

University officials said the audit should becompleted by the end of this month, but it has notyet been decided whether it will be made public.

Sources of Some Confusion

Like the nearly 160 other Harvard clubs in thiscountry and around the world, the Harvard Club ofHong Kong serves mainly as a social stompingground for Harvard grads living in the now-Chinesespecial administrative region.

The Harvard Club of Hong Kong, like a few otherHarvard clubs, had a special interest in raisingfunds for financial aid and consequently set upthe Harvard Club Foundation in November 1995.Until recently, Chick was concurrently presidentof the club and a member of the foundation's boardof trustees.

Executive Director of the Harvard AlumniAssociation (HAA) John P. Reardon Jr. '60, whooversees the Harvard clubs, says that most clubsdon't have similar dual structures but that it'snot unusual or even suspicious. The Harvard Clubof New York, for instance, has a similar structuremainly for tax purposes, Reardon said.

Reardon said that during his years ofinvolvement with the HAA he had never heard of asimilar situation and does not foresee any majorchanges to how Harvard supervises its clubs.

"Clubs have a fair amount of independence toset things up the way they want to...," he said."We go on the basis that our alumni are trying toserve Harvard and not themselves. It doesn't occurto me to upset the apple cart over one toughincident."

University and club officials currently do notknow if any other donations might be missing.

Why Chick issued a check for more than$385,000, the amount of the only donation known tobe missing, remains a source of confusion.

A letter sent by the club's executive committeeto its members on July 29 states, "In March...theformer Club President finally remitted to HarvardUniversity a sum of money which included themissing donation, as well as funds which belongedto the Club and/or the Harvard Club Foundation."

Former club treasurer Yun K. "Edward" Wongadmits that what lead in part to these problemswas a lack of supervision on his own part.

Wong said that he was completely unaware of thedonation because he did not review the monthlybank statements. In January 1997--a few weeksafter the donation was made--Wong said Chickapproached him about transferring money from theclub's savings account to a time deposit account,which pays a higher interest rate.

"I thought we only had a small amount of money[about $100,000]...so I wasn't worried about it,"Wong said.

After the donation left the clubs checkingaccount, Wong said the chance of his learning ofit was greatly reduced.

"My mistake is that I didn't monitor theaccount more carefully," Wong said. "I didn't seethe need to look at the statement every month."

Club Politics

Financial mishandlings are only part of theHong Kong club's difficulties. Other disagreementsas well have driven club members from theirproverbial club house.

Peter Gordon '80, a long time coordinator ofthe club's alumni interviews, left the club twoyears ago.

Gordon said he left "for reasons of ethics" andfor what he considered to be the misuse of theHarvard name.

"If one intends...to raise lots of money...it'snot clear to me you should be using the Harvardname without the direct guidance of the Universityitself," Gordon said.

Sabrina Y.T. Fang, who served as secretary onthe interim board in March but lost the Aprilelection, has also been a vocal critic of theclub's leadership.

"In essence, my biggest complaint is that somepeople see the club as a way to promote themselvesand their own firm," she said.

But the club's new leadership--having plannedseveral summer activities including monthly happyhours, occasional wine tastings and hikingtrips--seems intent on putting the club back ontrack. Several officials said that under thisleadership the club's membership has swelled from200 to nearly 350.

Tan also said in a statement to members shortlyafter the election that he plans for the club toresume some fundraising. This time, though, morepeople--on both sides of the Pacific--will bewatching.

"Clubs have a lot of authority, but we'restaying pretty close to this one," Reardon said