Penn News' owner Monk subpoenaed

John Kelly, the head of the attorney general's Philadelphia office, refused to discuss the subpoena, saying only that "a formal investigation is pending." Three weeks ago, Wharton senior Alyssa Rokito filed a complaint with the attorney general on behalf of over 120 Penn News customers seeking refunds for newspaper subscriptions. Wharton junior Monk, who took over the financially-troubled delivery service last fall, downplayed the significance of the subpoena. "I'm not worried about [the subpoena]," Monk said. "I don't think anything's going to come of it." But Monk said he hopes his company's problems can be resolved. "I want to see everyone get their money," he said. "I don't want to see people think, 'Hey, I got ripped off.' " Monk said he was aware that Penn News had some debts when he bought the delivery service. But Monk said he thought subscription money would eliminate the debts. "I knew that there were outstanding bills," he said. "But we had enough accounts in accounts receivable." According to Monk, the blame for Penn News' problems rests with the University. He said University officials reneged on their promise to allow Penn News to bill subscribers on student bursar bills. "Financially, we would have been fine had the University billed the bursar bill in the first place," he said. "If they had done that, we'd be fine and the students would be happy." In September, Penn News offered students the option of paying for subscriptions on their bursar bills. But over winter break, Penn News sent a letter to subscribers asking them to pay directly for their subscriptions. The letter explained the University would not allow the delivery service to use bursar bills. Monk said he cannot prove the University broke its promise because the agreement to use the bursar bills was never put in writing and consisted only of a verbal commitment that University officials made to the previous owner. The old owner "hasn't gotten involved in the situation so far," Monk said. Despite the current investigation by the attorney general's office, Monk said he feels "pretty good" about his chances for paying off his company's outstanding debts. Last month, officials at The New York Times, The Philadelphia Inquirer and USA Today said Penn News owed the three companies a total of at least $24,000 in overdue bills. "That's something I'm working on and I do have a couple of plans on the backburner," he said. He would not discuss the details of his plans or suggest when he may implement them. However, Monk did say that Penn News currently does not have enough money to pay either the newspaper companies or subscribers seeking refunds. "How could I be sitting on the money if the newspaper companies are going to come after me and students are too?" Monk said. "The money we did collect at the beginning of the year we spent on [delivery costs]," he said. "That's why we came up short at the end of the year." Monk also disputed an assertion made by Deputy Vice Provost George Koval that when the University decided last summer to give campus delivery service to Penn News, it only intended the change to last one year. "That's not true," Monk said. "I will take issue with that anytime he wants." Koval said last month that Penn Student Agencies will take over the newspaper delivery service next year. But Monk said the contract signed by the University, which established Penn News' independence from PSA, included no stipulation that the agreement would last only one year. Koval said yesterday he has "not seen or talked to Monk" since early January. Wharton graduate student Jonathan Eilian, who filed the complaint at the attorney general's office with Rokito, said he and Rokito were glad the subpoena had been issued. "We're very pleased with the rapid response," Eilian said. "It's nice to know that someone still cares about the little guys." Monk said he would "very much like to talk" with Eilian to explain his position. Please see PENN NEWS, page 7 PENN NEWS, from page 1

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