A business law professor at the University of California at Los Angeles has set off a debate over the appropriateness of the UCLA law school accepting a $10 million gift from Lowell Milken to create a business law institute, The New York Times reported. Lowell Milken is the younger brother of Michael Milken and worked with his more famous brother in the junk bond business. Michael Milken pleaded guilty to securities law violations when the government agreed to drop criminal charges against Lowell, but the Securities and Exchange Commission barred both brothers from the securities industry. Lowell Milken never admitted wrongdoing in these cases.
Lynn A. Stout, a business law professor, wrote to senior officials saying: “The creation of a Lowell Milken Institute for Business Law and Policy will damage my personal and professional reputation, as I have devoted my career to arguing for investor protection and honest and ethical behavior in business." Many other UCLA professors, the Times reported, have no problem with the gift.