Lawsuit Alleges CEO Misappropriated PPP Funding

4514 Cole Ave, #600 | Dallas, Texas 75205

Call Kardell Law Group 214-306-8045

The federal Paycheck Protection Program (PPP) was implemented as a response to the COVID-19 pandemic, providing small businesses with some federal funding to keep workers employed during the tough financial times caused by the virus. All money from that program was required to be used for business purposes only. However, there have been a variety of instances of fraud related to PPP funding that have made news over the last several months.

One recent lawsuit was filed in Florida, in which the plaintiff alleged Starboard Group Management Co., Inc. alleged wrongful termination and sexual harassment on the part of her supervisor.

Case background

The plaintiff served as the defendant’s vice president of legal affairs and human resources until the time of her termination on June 1. In addition to her allegations of sexual harassment, she also claims she was instructed to make false statements to creditors, vendors, landlords and other suppliers of the company. She states her superiors required her to tell those entities the employer was unable to meet its financial obligations because it did not receive PPP funds.

However, the company had in fact received PPP benefits to the tune of nearly $9 million. According to the plaintiff, the CEO of the company used approximately $1 million of this money to finance a new home in Montana, and also told her to characterize some employees in Montana as corporate employees as a means of defrauding the Small Business Administration and the federal government.

The plaintiff says when she complained to her supervisor about these fraudulent actions, she was terminated as a result in a manner violating whistleblower protections.

If you are aware of wrongdoing in your company or organization related to the COVID-19 pandemic, contact an experienced whistleblower lawyer at Kardell Law Group to learn about the legal recourse you have available to you.

By Steve Kardell | Published September 28, 2020 | Posted in Employee Rights, Whistleblower Litigation, Wrongful Termination | Tagged paycheck protection program, ppp, sexual harassment

Awards & Honors

Our Office

Dallas Office
4514 Cole Ave
#600
Dallas, Texas 75205
Phone: 214-306-8045
Fax: 469-729-9926

Testimonials

"Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission." -Richard Bowen, Citigroup Whistleblower
"Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone." -V.B.
"Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them." -KS
"Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best." -S.S.