Vol. 61 NO. 73
ubspectrum.com
Wednesday, April 11, 2012
Virtual Money Pit
The facts are building, and we need answers from all involved
*Editorial* Often, when a multitude of events come together in ways that don’t seem to fit, it only takes one piece of information to bring an entire puzzle together, and into focus. On Feb. 12, SA Treasurer Sikander Khan moved a gargantuan $300,000 from what he called a “rainy day fund” to a line named “Projects.” The fund was actually a line called “Cash and Investments,” a rollover fund for the mandatory student activity fee.
SA Scandal: There’s No App For That
Khan said that the money should be spent, but at that time there was no talk of what it should be spent on. There were, however, a few simple guidelines to follow. The money had to provide “long term benefits” to the students, any project spent must benefit the student body for a fiveyear period, and the project must provide services for at least 50 percent of the student body.
The Spectrum investigates Virtual Academix, possible corruption, and SA’s missing treasurer MATTHEW PARRINO Editor in Chief
Student Association Treasurer Sikander Khan and Vice President Meghan McMonagle almost spent $300,000 of student money on a mobile application, but President JoAnna Datz stopped them. It’s a good thing she did. Virtual Academix, the company trying to sell the app, has been engulfed in mystery and question marks since its inception. Datz released a 100-page internal document chronicling how SA almost got duped and submitted it to police sometime in March. The District Attorney’s office investigated the case, Khan, and McMonagle, but uncovered no criminal conduct, according to a memo released by University Police. However, since the report was released, Virtual Academix has seemingly disappeared. Despite numerous efforts by The Spectrum to reach the founder or a spokesperson, no one at the company has answered reporters’ questions. In fact, the more The Spectrum probes, the more those responsible vanish or decline to comment. The case – which began as a secretive SA deal – has expanded beyond UB and now includes three UB alums, including a former Student Association president. It has also revealed the great schism that currently exists among the top three SA officials. The three oversee $3.6 million in student money, but haven’t spoken in weeks and can barely stand to be in the same room with each other. Khan, like the company in question, has vanished. He has not been in his office since at least April 5 and has not been available to the clubs to perform his duties, which include signing off on checks. He’s turned off his phone and been absent from class.
Has SA been doing a good job this his year? year?
How much, if any, do you think SA should p pay ay ffor or a mobile mobile device device app?
Would you want an SA m mobile app?
600 500 Yes
44% %
38%
No
2 27%
Yes
400
29%
No
300
D n’t Know Do
200
18% %
Don n’t Know ow
44% %
Do you trrust SA?
34%
Ye es
47%
No Don’t Know
19%
None e
Over $ 200,000 0
0 - $50,000 0
$ 50 - 100,000 0
0
$ 100 - 200,000 0
100
CHECK OUT PAGE 9
Have you heard abo outt SA’s A mobile e & cloud d servvicces?
McMonagle physically turned her back on two Spectrum reporters who went to the SA office on Monday to ask for comment. She has not returned emails and failed to show up for a scheduled interview on Saturday. Datz, who’s been the most forthcoming, spoke to The Spectrum but wouldn’t comment on the specific actions of Khan and McMonagle. Many students around campus are wondering what is going on. Here’s what happened: On Feb. 12, Khan convinced the SA Senate to approve a transfer of $300,000 from a cash and investments line to a projects line in SA’s budget. Khan then conducted market research and a vendor search for companies that offer mobile application technology. Khan spoke about the app and the vendors in an interview with The Spectrum on March 26. On Jan. 31, Virtual Academix Vice President of Corporate Development Ted Miale, a former UB student, reached out to Datz and Khan to set up a meeting to present a plan for an app. The meeting took place on Feb. 3, and Datz decided she didn’t want to pursue the app. Khan persisted. Datz said she thought he was pursuing it for the coming year since, at the time, he was considering running for re-election. He didn’t. A little over a month later, on March 13, Khan and McMonagle signed a contract with Virtual Academix for $297,500 that would get SA an app and five years of maintenance service. An SA investigation determined that the price far exceeded fair market value for such a product, which lies between $50,000 and $150,000 prior to negotiation.
No
87% %
FOR RESULTS OF STUDENT POLLS
That kind of talk is extremely vague, and caused a great deal of contention among the SA senate and other parts of SA. That is, until March 27, when more rigid rules on how to spend the money were suggested alongside another move for the money to a line called “Long Term Projects Capital Equipment.”
Investigating Virtual Academix Everyone with connections to Virtual Academix is hiding. They’ve either lawyered up or remain unreachable, much like Khan and McMonagle. Everyone, that is, except Miale, the former UB student who served as the company’s vice president. But he did try to hide. On Saturday, The Spectrum reached out to him on Facebook and LinkedIn. By Monday morning, he had deleted or hidden both profiles and became a virtual ghost. The Spectrum then contacted his full-time employer – Linium. Linium Managing Partner Joe Burke left a voice message for The Spectrum Monday afternoon, saying,“[Linium doesn’t] have any knowledge of the situation or what is going on. This is a personal matter that Ted is involved with. This isn't even the kind of work we do as a consulting firm…Linium is not involved, engaged, or endorsing this work Ted is doing.”
Written by SA Engineering Coordinator Dan Pastuf, it built upon Khan’s original guidelines. It continued on page 3
SA Treasurer Absent Following $300,000 Scandal
Once his boss was contacted, Miale agreed to speak to The Spectrum. He claimed he wasn’t affiliated with Virtual Academix and was simply “doing a favor for a friend” by giving the presentation to SA. He actually wasn’t informed about what he’d be presenting until the morning of the meeting, he told The Spectrum, even though he represented himself to SA as Vice President of Corporate Development.
REBECCA BRATEK News Editor Student Association Treasurer Sikander Khan has seemingly disappeared, and the clubs are angry. Last Thursday, SA President JoAnna Datz sent an email out to various groups within SA and the university, stating that an internal investigation was taking place – Khan had signed a questionable contract, along with SA Vice President Meghan McMonagle, that would pay $297,500 of SA’s budget to Virtual Academix to develop a mobile application.
He claimed he didn’t know anyone involved with the company other than “his friend,” whose name he would not reveal. He also wouldn’t disclose names or contact information for anyone in the company.
But the clubs, which have finance issues of their own, have been unable to reach Khan since the investigation was made public last week.
On Saturday afternoon, The Spectrum called the phone number on the contact page of Vir-
“I first found out about [the investigation] through a friend who saw something on it on UBReddit, then someone I know showed me
continued on page 2
continued on page 6
SA’s E-Board Has Been Divided All Year LISA KHOURY Asst. News Editor
13% % Yes
By the time the SA investigation was released, The Spectrum had already launched an investigation of its own.
The SA has had its share of problems this year, but perhaps the biggest of all is that the executive board has barely exchanged words. Currently, Vice President Meghan McMonagle and Treasurer Sikander Khan do not talk to President JoAnna Datz. The three have not been on civil
terms since soon after they were elected in May 2011. Datz affirmed that the past year could be described as “two-against-one.” Their personal issues with one another have led to a lack of communication this year. The lack of communication hindered the SA’s operations, according to numerous SA officials. “It’s been affecting things all year,” said Travis Nemmer, who will be next year’s SA president. “It’s taken
Sprinting Through Overwhelming Odds In her first summer at college, Asia Henry lived on pancake mix and syrup – that’s all she could afford. Story on page 22
clubs much longer time to get money; departmental activity is stalled. There’s been less communication. They’re supposed to be setting an example for us.” Nemmer went on to say the tension between the e-board led to tension between the departments and between the clubs and SA. The process leading up to Nemmer’s win in the election was fraught with problems between SA higher-ups. continued on page 6
Cracking Open Closed Doors Robert Fearghas slid a condom onto his sister’s curling iron, took a deep breath, and inserted it into the hole in his anus. After eight years of hiding his sexual identity, Fearghas admitted he was gay. Finally, he began to prepare for his first sexual encounter with a man. Story on page 11
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