Penn State employee’s lawsuit alleges mismanagement of at least $500K
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- Whistleblower claims Penn State mismanaged $500K during outreach conference prep
- Low registration and unmet hotel obligations cost the university over $160K
- Employee alleges demotion followed concerns raised over fiscal waste and planning
A whistleblower lawsuit filed by a longtime Penn State employee alleged the university and a top administrator mismanaged at least $500,000 during a time of universitywide belt-tightening.
David Aneckstein, the senior communications director for Penn State Outreach and Online Education, said in the lawsuit there were so many wrongdoings in the lead-up to a fall conference that it amounted to a waste of government money.
He also said he was demoted in retaliation for raising his concerns. A message left Monday with the university was not immediately returned.
Aneckstein said he filed an anonymous whistleblower complaint in late August about what was an upcoming Outreach conference, one that argued it was inadequately planned and would result in a “significant loss of state funds.”
He said he met with Larry D. Terry II, the university’s vice president for Outreach, one-on-one and suggested the conference be delayed a year because it “needed a different timeline to be successful.” With major organizational changes in the department that oversees programs including WPSU, Shaver’s Creek Environmental Center and The Arboretum at Penn State, Aneckstein argued there would be less staff to assist and that it would be difficult to plan a well-attended conference in less than eight months.
He also placed blame with a planning committee that he said missed several internal deadlines for securing venues, speakers, sponsors and an agenda. Those delays, he alleged in the lawsuit filed last month, hindered the university’s marketing and communications plans.
Registration numbers were “exceptionally low,” Aneckstein said in the lawsuit. There were only 125 people registered — about half of whom were Penn State employees or speakers given complimentary tickets.
Aneckstein also said only 20% of the 850 hotel rooms blocked for the conference were reserved, costing the university more than $160,000 because of a contractual obligation to cover the cost of rooms that were not booked.
A draft report — which Aneckstein’s attorney summarized but did not include in the lawsuit — allegedly placed the loss at $500,000, though Aneckstein said he believes that did not account for other “excessive costs” such as employee trips to Philadelphia, San Diego and Dallas.
He further wondered if Terry and others were “enjoying the ability to network with important and powerful individuals and make connections that would position them for significant personal gain regardless of the conference’s ultimate success (or failure).”
Aneckstein, who has worked for the university since 2008, said he was told his position was no longer needed within two months of raising his concerns. All of his external communication responsibilities and job duties were removed Jan. 1, his attorney wrote.
He’s seeking at least $50,000. A message left Monday with his attorney Christopher A. Macey Jr. was not immediately returned.