A judge in Pennsylvania has intervened to prevent the Penn State Board of Trustees from moving forward with a vote to dismiss a board member who is involved in a lawsuit against the board concerning financial information access. The judge deemed such a vote potentially retaliatory, given the circumstances surrounding the member’s legal actions.
Barry Fenchak, who was elected to an alumni position on the board in 2022 and works as an investment advisor, has raised concerns about the significant advisory fees associated with Penn State’s $4.5 billion endowment, which have reportedly increased substantially, tripling since 2018. Additionally, he is seeking transparency regarding the projected $700 million renovation of Beaver Stadium, which has a seating capacity exceeding 100,000. The board had approved plans for these stadium renovations earlier this year.
In his decision to block Fenchak’s potential removal, Centre County Judge Brian K. Marshall referenced the evidence and testimony that indicated Fenchak was experiencing retaliatory conduct from the board. The board had alleged that Fenchak violated its code of conduct when he reportedly made an inappropriate comment to a staff member during a meeting in July at the Altoona campus. A vote on Fenchak’s dismissal was anticipated on Thursday, but the judge ruled that alternative measures could address the alleged incident without resulting in his removal, allowing him to participate in future meetings virtually.
Judge Marshall stated that approving Fenchak’s removal could cast doubt on the financial operations of the board, negatively impacting all stakeholders at Penn State University except for those at the upper echelons of the institution. The judge pointed out that investment fees have risen from 0.62% prior to 2018 to approximately 2.5% in the 2018-19 fiscal year and remain above 1.8% in subsequent years.
Fenchak’s attorney, Terry Mutchler, criticized the board’s actions, indicating that the trustees wanted to operate without scrutiny and dismiss any dissenting voices. “The board doesn’t appreciate him asking questions, and they attempted to remove him,” he stated.
In response to the ruling, a spokesperson for Penn State, Wyatt DuBois, mentioned that the university is currently assessing the decision.
Moreover, another outspoken trustee, Anthony Lubrano, is involved in a separate lawsuit against the board concerning his legal costs related to an internal probe. Recently, a judge in Lackawanna County ruled that the board must halt its investigation into Lubrano until his legal fees are settled. Lubrano had previously sought unsuccessfully to have Beaver Stadium renamed in honor of the late coach Joe Paterno, and the details surrounding the ongoing investigation remain confidential.
