State orders Penn News refund plan

Monk, a Wharton junior, said he will probably meet the timetable and announce plans next week on how he will reimburse pre-paying customers for newspapers they did not receive. But he also stressed that in order to help pay for the refunds, he will continue to seek payment from students who never paid for subscriptions but received at least some of their newspapers. "I want to be fair with students, but the students have to be fair with me," he said. Monk, who is personally liable for all of Penn News' debts since the company is not incorporated, said he does not have enough money to make the payments and therefore needs those subscribers to pay. Monk added that in addition to borrowing money from friends, he may take legal action against "other parties involved," including the University, to help recoup his personal losses. The attorney general's office subpoenaed Monk earlier this year to appear at its Philadelphia office with Penn News records after a group of University students filed a complaint with the office's Board of Consumer Protection. At the time, Wharton graduate student Jonathan Eilian, who helped file the complaint on behalf of over 120 other students, said he only wanted his money back. Leonard Galloway, the state's agent investigating Penn News, said yesterday that Monk has not cooperated fully with the investigation, which his office launched shortly after the complaint was filed. After forcing the postponement of the first meeting by asking for a continuance and then failing to bring the documents to the second meeting, Monk did not show up for his latest appointment Monday, Galloway said. Galloway refused to speculate what action his office might now take, but he did say Deputy Attorney General John Kelly is "not too happy" with Monk. Monk defended his absence, insisting he thought the meeting had been scheduled for Friday. Although Monk is the primary subject of the investigation, Galloway said his office is also examining the involvement of others, including former Penn News owner Mark Stanley. "There are other people involved," he said. "We're looking into the aspects of the previous owner." "We're not sure who the real culprit is, if there is more than one culprit, or how involved the culprit or culprits may be," Galloway said. According to Galloway, the confusion over exactly who is responsible has complicated the probe. "This is not Bloomingdales where we know everybody involved," he said. "It's just not your everyday consumer complaint." While the attorney general's office continues its investigation, the University taken its own action. Student Life administrator Thomas Hauber said the University has informed Monk the agreement giving Penn News exclusive delivery rights on campus has been terminated because of the company's bad service. "We're considering the contract null and void," he said. "[Penn News was not] complying with the terms of that contract." The contract was set to expire June 30. Hauber also said Penn News currently owes the University an undisclosed amount of money for services which Penn Student Agencies provided to the newspaper delivery service. PSA, which had operated the delivery service until Stanley took over last year, will resume control of the operation this summer, Hauber said. Hauber added he will probably not know for a month or two whether PSA will deliver to students' doors or use the drop-box system.

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