Thursday, August 15, 2019

Whistleblower Lawsuit Alleges Retaliation by SEFCU

A lawsuit alleges that State Employees Federal Credit Union (SEFCU), headquartered in Albany, New York, retaliated against an employee for filing a whitleblower complaint.

The plaintiff, David Gosstola, was fired in May 2019 as the Chief Financial Officer (CFO) after filing a whistleblower complaint. The plaintiff was employed as the CFO at SEFCU, since 2008.

The complaint alleges that Michael J. Castellana, President and Chief Executive Office of SEFCU, "had business and personal relationships that created real or potential conflicts of interest" and entered into transactions with such parties that did not adequately protect SEFCU's interest.

For example, the CFO alleges that Castellana had communicated confidential information regarding commercial loans to third parties with whom Castellana had a personal and/or business relationship.

The lawsuit claims that the board of directors relied on information submitted by Castellana and his personal adviser in determining his compensation.

Moreover, Castellana approved projects without competitive bids.

In January 2018, the plaintiff filed a Whistleblower complaint regarding concerns about the governance and direction of SEFCU under Castellana's leadership.

The complaint claims that SEFCU violated its Whistleblower Policy after it retaliated against him.

The plaintiff alleges breach of contract, wrongful termination, and fraud.

The plaintiff claims the firing harmed his professional reputation and inflicted economic loss and emotional pain.

The lawsuit seeks compensatory, punitive damages and attorneys' fees in the amount to be proven at trial.

Read the complaint.

1 comment:

  1. Credit union employee suspected of reporting wrongdoing sued for defamation
    Read About It Here



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