Nepotism violation – board member recommendation results in $1,588,017 investment in own company in 2010

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Interestingly, TBC has been sited previously for not having a statement about nepotism on their board member application.
A quote from the 2004 / 2005 auditor letter:
TBC Nepotism
The entire document can be reviewed here:
TBC Financials 2004 2005 auditor letter

So in 2005 the Texas Education Agency suggested there needed to be a nepotism statement added to the board member application. Either it was or wasn’t added but regardless in 2010, a nepotism violation happened anyway. Note that the document mentions that the board member did resign but there is no mention of any penalty. Is there a nepotism statement on the current board member application? If not, why?

TBC Nepotism mentioned in 2009 2010 financial statement page 16

TBC Board Nepotism violation

The complete financial state for 2009 / 2010 can be viewed here:

TBC Financials 2009 2010