The Facts:

On October 3th 2009 then IUSA Chief of Transportation Ilya Rehkter came before the

IUSA congress and presented a collaborative project between IUSA and the School of

Informatics that used a GPS system to track IU buses.1 On November 17, 2009 Rehkter

again appeared before congress to discuss the GPS project, this time indicating the

projects original budget of $8,000 was in fact more than would be required to complete

the GPS project, and as such Rehkter proposed Congressional Resolution 09-10-02 which

moved that congress allocate $3500 dollars from the GPS project budget to the Zimride

initiative. 2 The motion passed with one dissenting vote, leaving the GPS project a budget

of $4500, $500 more than the actual cost of development based on Rehkter’s statements

to congress.3

On February 5, 2010 Rehkter filed an application in the Johnson Center for

Entrepreneurship and Innovation IDEA Competition.4 The competition requires teams to

submit an original business idea and then write a feasibility plan explaining their project.
5
The winning team would be awarded $4,000 to help fund their start up venture.6 The

competition has a clearly defined schedule with multiple drafts of the feasibility plan
1
Congressional Minutes. Indiana University Student Association Office Document .
November 3rd 2009. http://iusa.indiana.edu/wp-
content/uploads/2010/06/Minutes.09.11.03.pdf
2
Congressional Minutes. Indiana University Student Association Office Document .
November 17, 2009. http://iusa.indiana.edu/wp-
content/uploads/2010/06/Minutes.09.11.17.pdf
3
Congressional Resolution No. 09-10-12. Indiana University Student Association
Office Document. November 17, 2009. http://iusa.indiana.edu/wp-
content/uploads/2010/06/Resolution.09.10.12.Zimride-Budget.pdf
4
Official Rules, Guidelines and Submission Requirements . Johnson Center for
Entrepreneurship and Innovation.
www.kelley.iu.edu/JCEI/files/IDEA_Competition_Rules.doc
5
ibid
6
First IU Cross Campus business IDEA competition launched . The Indiana
Entrepreneur. May 2010.

1
being due at different points until the competition date, April 1,2010. In the final plan

submitted on March 30th 2010, Rehkter, then IUSA Student Body President (and current

IUSA Vice President) Peter SerVaas are among those listed as members of the

management team of a venture named “LiveArrive LLC” which promised to offer a bus

tracking service aimed at colleges and universities.7

The IDEA competition occurred between February 5 and April 1, 2010. During

the time that both Rehkter and SerVaas were engaged in the IDEA competition, both

continued to serve in IUSA. On Feb 16, eleven days after submitting the idea of a

company that operated a bus tracking service to the IDEA competition, Rehkter appeared

before congress and informed them that so far the project had cost $1,500 and that the

system was accurate within 20ft. Rehkter proposed eventually installing kiosks with

display screens across campus so that students could see where the tracked buses were

located.8 On that same day Michael Coleman announced his candidacy for student body

president with Peter SerVaas running for Vice President of Administration. One of their

campaign platforms was providing a GPS bus tracking system.9

In the final feasibility report submitted to the IDEA competition, Rehkter and his

team describe their target market as being colleges and universities looking for a more

cost efficient GPS bus tracking solution. The team cites conversations with university

administrators as evidence for the need of a low cost GPS solution.10 The report also
7
LiveArrive Feasibility Final. LIveArrive LLC. Housed in the Johnsen Center for
Entrepreneurship. March 30th, 2010 p. 4
8
Congressional Minutes. Indiana Student Association Office Document. February 16,
2010. http://iusa.indiana.edu/wp-content/uploads/2010/06/Minutes.10.02.16.pdf
9
Wiseman, Claire. “iUnity Kicks Off Campaign.” Indiana Daily Student. February 16,
2010. http://idsnews.com/news/story.aspx?
id=73764&search=iunity&section=search
10
LiveArrive Feasibility Final. LIveArrive LLC. Housed in the Johnsen Center for
Entrepreneurship. March 30th, 2010 p. 3

2
discusses the existence of a prototype model which is “undergoing initial testing.”11 At

that time the design required improvements to such features as estimated time of arrival

and a developed website. These improvements are required as the software that powers

LiveArrive LLC’s bus tracking was designed in house by the team and the report states

that “these objectives will be addressed in the coming months”

The report’s financial analysis indicates that in the company’s first year of

existence a budget of $8,600 would provide enough funds to install GPS units on 30

buses and to operate and maintain the tracking software. The report also stated that by the

third year of the company’s existence it will have sales of 130 buses and that the four

members of the management team would receive a salary of $50,000 a year with the

assumption that all four listed members of the management team would continue to be

“involved with the company during that time.” According to the plan both SerVaas and

Rehkter would be involved with LiveArrive LLC and be paid a projected salary of

$50,000 a year stemming from the profits made by selling bus tracking software and

hardware to colleges and universities.12

On March 30,2010 Rehkter and his IDEA competition team submitted their final

feasibility plan and on the same day Rehkter proposed Congressional Resolution 09-10-

37 which moved to allocate $15,000 from the Task Force Budget to the Smart Bus

Initiative for the purpose of “paying for such features as estimated time of arrival (ETA),

a text messaging service, and an improved interface.”13 At that same congressional

11
ibid p. 5
12
ibid. p. 6
13
Congressional Resolution No. 09-10-37. Indiana University Student Association
Office Document. March 30, 2010. http://iusa.indiana.edu/wp-
content/uploads/2010/06/Resolution.09.10.37.SMART-Bus.pdf

3
meeting Student Body Treasurer Jennifer Chen presented a 2010-2011 operating budget

co-sponsored by members of the then recently elected iUnity ticket including Peter

SerVaas, Michael Coleman, and Neil Kelty which allocated $7,500 for SMART BUS

program during the 2010-2011 school year.14 The following day at 10:32 a.m. a private

registrant registered livearrive.com via Happy Dream Host, a webhosting company.15 On

April 1st 2010, Rehkter, SerVaas, and an informatics student named Nick Baker and a

neuroscience major named Cameron Schnick are named as the first place winners of the

inaugural idea competition for their start up “LiveArrive LLC.” By winning the IDEA

competition LiveArrive LLC was awarded $5,000 from the Johnson Center as well as

office space in the “Hoosier Hatchery” at the IU Innovation Center. In their feasibility

report, the LiveArrive team states the $5,000 would be used to develop “integral features

like automatic passenger counters and outdoor solar kiosks.”16

On April 16, 2010 Michael Coleman, Peter SerVaas, Sierra Hsieh, and Jennifer

Peterson were inaugurated into office marking the end of SerVaas term as president, but

not the end of his time as an IUSA executive officer.17 In their proposed budget the new

administration set aside 7,500 dollars for the SMART Bus program.18

14
Congressional Resolution No. 09-10-35. Indiana University Student Association
Office Document. March 30, 2010. http://iusa.indiana.edu/wp-
content/uploads/2010/06/Resolution.09.10.35.Next-Years-Operating-Budget.pdf
15
Whois.com lookup on livearrive.com. http://domains.whois.com/domain.php
16
LiveArrive Feasibility Final. LIveArrive LLC. Housed in the Johnsen Center for
Entrepreneurship. March 30th, 2010 p. 1
17
“Passing the gavel: iUnity Inaugurated Thursday.” Claire Wiseman. The Indiana
Daily Student. April 16, 2010. http://idsnews.com/news/story.aspx?
id=75282&search=iunity&section=search
18
Congressional Resolution No. 09-10-35 Indiana University Student Association
Office Document. http://iusa.indiana.edu/wp-
content/uploads/2010/06/Resolution.09.10.35.Next-Years-Operating-Budget.pdf

4
 After his graduation Rehkter continued to work on the bus project as evidenced

by an article published in the Indiana Daily Student on June 23, 2010.19 In the article

Rehkter tells the IDS ““I told him that I would run the idea by the executive members,

organize a team around the project and hopefully develop an affordable system in-house.”

Rehkter goes on to say that he hoped to launch the system at the start of the upcoming

school year, a full four months after his graduation. On July 2, 2010 doublemap.com is

registered by a private registrant using the same hosting service as the user who

registered livearrive.com.20

On September 7, 2010, current Student Body President Michael Coleman

appeared before congress to update them about the state of iUnity’s proposed goals as an

administration. Coleman talks about hopefully expanding the GPS bus tracking system to

include the 6 and 9 Bloomington Transit buses and to branch out to more devices than

just the web and iPhone. He refers to the program as “epic.”21

At the next congressional meeting on September 21, Rehkter appeared before

congress to update them on the SMART BUS initiative. Rehkter informs congress that all

of the campus buses have had the GPS device installed on them and that it is his goal to

have tracking available on multiple devices and to expand the system to Bloomington

Transit. Rehkter also mentions the need to create a contract between Double Map and

IUSA.22 On September 30,2010 IUSA announced the launch of the Double Map bus
19
IUSA Continues Project Plans During Summer. Dennis Glade. The Indiana Daily
Student. June 23, 2010. http://idsnews.com/news/story.aspx?
id=76076&search=ilya&section=search
20
whois.com lookup:doublemap.com. http://domains.whois.com/domain.php
21
Congressional Minutes. Indiana University Student Association Office Document.
September 7, 2010. http://iusa.indiana.edu/wp
content/uploads/2010/04/Minutes-9.7.10.pdf
22
Congressional Minutes. Indiana University Student Association Office Document.
September 21, 2010. http://iusa.indiana.edu/wp-

5
tracking system via their website.23 In the press release IU Director of Campus Buses

Perry Maull is quoted about the relationship between IUSA and Double Map:

“The IUSA funded student project to provide a real time bus tracker program has

saved several hundred thousands of dollars, compared to commercially available

bus tracker systems that have been purchased by public transit systems serving

other major universities.”24

On October 26th, Rehkter informs congress that he wants to turn the bus tracking

system into a business and that he requires $11,000 from the university to make the

tracking service available for free for IUSA .25 Rehkter informs congress that he needs a

member of congress to sign the contract and congressman and Finance Committee chair

Patrick Elwood is selected to sign the contract on behalf of IUSA . Rehkter also mentions

that he intends to sell the bus tracking system to other campuses . At this same meeting

Student Body President Michael Coleman lists the bus tracking service as one of his

administrations accomplishments. 26

Congress was presented with the Double Map contract and an updated budget at

the following meeting on November 30th. The contract, sponsored by Elwood, indicates

that Double Map will provide a Marketing Account Manager “who will act as a liason

between Double Map and Organization.” The contract available on the IUSA website

content/uploads/2010/04/Minutes-9.21.10.pdf
23
Kacan, Murat. “A,B,D,E,X You’ll Never Miss a Campus Bus Again.” Indiana
University Student Association. September 30, 2010.
http://iusa.indiana.edu/2010/09/30/a-b-d-e-x-youll-never-miss-a-campus-bus-
again/
24
ibid
25
Congressional Minutes. Indiana University Student Association Office Document.
October 26, 2010
26
ibid

6
does not refer to IU or IUSA and instead uses the undefined term “organization .”27

According the contract Double Map would provide updates and allow the “organization”

to purchase add on modules as long as the annual fee of $12,000 was paid . The contract

also stipulates that it will automatically renew after two years for successive one-year

periods unless IUSA or Double Map gives a thirty-day written notice . The resolution on

the IUSA website does not indicate if it was ratified.

Following the November 30, 2010 congress meeting the IUSA website does not

provide access to information about the congressional meetings on January 18 and 25,

2011. Despite the fact that these meeting agendas and resolutions are listed as of Friday

February 18, 2011 they are all dead links that do not actually contain the resolutions or

agendas.28 The meeting agenda from Feburary 8th is available although the minutes are

not, nor are voting records, and the resolutions are all dead links as of February 18, 2011 .

A photograph of the new Double Map contract passed on Feburary 8, 2011 indicates that

that the IUSA congress voted to give Ilya Rehkter personal control over all intellectual

property associated with the Smart Bus initiative and allows IUSA to maintain ownership

of all of the hardware for a 12,000 dollar a year fee.29

The Violations:

(1) Peter SerVaas and Ilya Rehkter’s involvement in LiveArrive LLC and their

past and current positions in IUSA represent a conflict of interest and is in

violation the Indiana University Conflicts of Interest Policy.

27
Congressional Resolution 10-11-14. Indiana University Student Association Office
Document. November 30, 2010. http://iusa.indiana.edu/congress/records/
28
http://iusa.indiana.edu/congress/records/ accessed February 18, 2011.
29
Congressional Resolution No, 10-11-21. Indiana University Student Association
Office Document. February 8, 2011. NOT CURRENTLY AVAILIBLE ONLINE.

7
 (2) SerVaas’s involvement in both LiveArrive and IUSA and his facilitation of

funding LiveArrive is evidence of an unethical use of finances, which

constitutes an impeachable offense.

(3) SerVaas and Rehkter’s connection with LiveArriveLLC and the subsequent

profits generated by the company from its relationship with IUSA represents a

violation of Indiana Code IC 35-44-1-3, which states that “a university

employee who knowingly or intentionally has an economic interest in or

derives a profit from a contract or purchase connected with the university as

indicated above, commits a conflict of interest, a Class D felony.”

(4) The attempted sale of intellectual property represents a violation of Indiana

Univeristy’s intellectual property prolicy which states that “anything created

using University resources” is required to notify Indiana University Research

and Technology Corporation within 60 days and is then subject to ownership

by IURTC.

(5) The involvement of the entire IUSA Executive branch in Resolution 10-11-14

is an example of unethical use of finances and thus constitutes an impeachable

offense by every member of the IUSA executive board.

The Harms:

By allowing Peter SerVaas and Ilya Rehkter to use their IUSA positions for

personal gain, IUSA is setting a dangerous precedent which allows individuals with

purchasing power to directly benefit from their appointed positions. Although Double

Map has been a successful project, the student body was used to provide funds for start

8
up company comprised of members of the IUSA executive board. These students are

elected to serve the student body, not profiteer form their positions.

Immediacy: The recently passed resolution giving Ilya Rehkter personal

ownership of all intellectual property associated with Double Map and his stated intention

to sell the system to other campuses indicates the strong likely hood that IUSA property

will be resold for Rehkter’s personal gain. If this happens IUSA will lose control over the

bus tracking system and be forced to pay Rehkter for a system that was paid for by IU

students.

Irrevocable: Allowing this most recent resolution to stand will allow Rehkter and

his development team to maintain control of intellectual property rightfully belonging to

the student body, if this contract is allowed to stand IU students will have a difficult time

recovering their investment.

Egregious: This most recent resolution is an example of the conflict of interest

situation that exists between Peter SerVaas and Ilya Rehkter that has resulted in almost

approximately $31,000 worth of student funds directly invested into a project that

Rehkter is attempting to assume personal ownership of.

RELIEF REQUESTED:

1) We ask the Supreme Court to nullify Resolution 10-11-21 and any other section

of any other resolution connected to Double Map or the Smart Bus Inititative that

the Supreme Court sees as being in conflict the rights of the student body and to

restore ownership of all intellectual and physical property associated with the bus-

tracking program back to IUSA.

9
2) We ask the Supreme Court to impeach their entire current executive branch for

their role in both actively being involved with the conflict of interest situation in

the case of Peter SerVaas and for their passive support for resolutions involving

the attempted privatization of the bus tracking system in the case of the remaining

executives.

3) We ask that the Supreme Court to take whatever steps necessary to pursue further

legal action against Ilya Rehkter for directly receiving monetary gain from his

position within IUSA a violation of Indiana Code IC 35-44-1-3 which carries the

penalty of being a class D felony.

4) We ask the Supreme Court to force congress to pass an updated Bylaws that

would include new amendments governing conflict of interest disclosure,

financial conflict of interest, intellectual property policy, and an extension on

impeachable offenses and code of conduct violations where it would not be

possible for a normal student to discover a violation has occurred with the two

month window, as was the situation in this case.

5) We ask the Supreme Court to require congress to give University Information

Technology Services both the programming code and access to the physical

hardware to ensure continued operation of the bus tracking feature and to debrand

the software as “Double Map sponsored by IUSA” to simply Bus Tracking

sponsored by IUSA.

10