Trustee’s Removal Halted Amid Financial Inquiry
A Pennsylvania judge has blocked Penn State’s Board of Trustees from voting to remove a trustee, Barry Fenchak, who is pushing for greater transparency in the university’s financial dealings. The board had scheduled a vote to oust Fenchak, who has been seeking detailed financial records related to the university’s $4.5 billion endowment and the planned $700 million renovation of Beaver Stadium.
Allegations of Retaliation
Centre County Judge Brian K. Marshall issued the order on Wednesday, describing the move to remove Fenchak as potentially “retaliatory.” Fenchak, who was elected to an alumni seat on the board in 2022, has raised concerns about the increasing advisory fees related to the university’s endowment. These fees have more than tripled since 2018, rising from 0.62% to over 1.8%, according to the judge’s ruling.
Fenchak’s legal battle stems from his demand for more detailed financial records, including information about the costly Beaver Stadium renovation project, which was approved by the board earlier this year.
The Board’s Allegations
The Penn State Board of Trustees accused Fenchak of violating the board’s code of conduct, alleging he made an inappropriate comment to a university staff member during a meeting at the Altoona campus in July. The board had planned to vote on his removal on Thursday. However, Judge Marshall determined that less severe actions could be taken instead of removing Fenchak entirely. Fenchak has been attending board meetings virtually since the incident.
“Allowing his removal would re-cast a shadow over the financial operations of defendants, to the detriment of every PSU stakeholder except those at the very top of PSU’s hierarchy,” Judge Marshall wrote in his ruling.
Financial Concerns at the Heart of the Dispute
Fenchak’s lawyer, Terry Mutchler, emphasized that Fenchak’s pursuit of transparency has made him unpopular with the board. “Penn State wants to operate behind closed doors with ‘yes men’ and ‘yes women.’ And trustee Fenchak is asking questions,” Mutchler said. “The board doesn’t like it, and they tried to kick him out the door.”
The judge’s ruling noted that advisory fees tied to Penn State’s endowment have significantly increased since 2018, raising concerns about financial oversight. Fenchak has been vocal about the need for transparency, particularly regarding these growing fees and the financial implications of the Beaver Stadium renovation.
Legal Challenges Among Trustees
Fenchak is not the only trustee challenging the board. Another trustee, Anthony Lubrano, is engaged in a separate legal battle with the university. Lubrano is suing the board over legal costs related to an internal investigation into his conduct. A judge in Lackawanna County recently ruled that the board must halt its investigation into Lubrano until it covers his legal expenses.
Penn State University spokesperson Wyatt DuBois said the university is reviewing the court’s decision regarding Fenchak.
