$205K settlement reached, then rejected, in CT Lottery whistleblower case

$205Ok settlement reached, then rejected, in CT Lottery whistleblower case

Old disputes die laborious on the Connecticut Lottery Corp. Here is the tale of one among them.

A sour felony dispute between the CLC and one among its former best officers was once at the verge of being resolved 2½ months in the past. The opposing events signed off March 10 on truce phrases starting from a $205,000 settlement value right down to the precise wording of a script that might be learn to any information reporter who requested in regards to the case.

Signing a sheet of paper outlining the settlement phrases had been lottery CEO Greg Smith and ex-CLC safety director Alfred DuPuis. The latter had spent maximum of 2019 in quasi-judicial administrative hearings to resolve whether or not he must be compensated for retaliation he claimed he’d suffered for blowing the whistle on issues on the CLC courting again 5 years.

All that remained was once for the lottery’s board of administrators to approve what its paid legal professionals and its $207,000-a-year CEO had agreed to.

But a month went through, and then two months, and not using a motion through the board and no phrase about what it could do. Finally, on Wednesday, Jim Shea, the CLC-retained attorney from the company Jackson Lewis, known as DuPuis’ attorney, Eric Brown, to inform him the “board rejected the settlement,” Brown stated.

Now Brown says he’s going to attempt to get a Hartford Superior Court pass judgement on to reserve that the settlement take impact, with out the lottery board’s approval.

However, if that odd transfer fails, it is directly to felony briefs and a last ruling in DuPuis’ whistleblower case. Likewise, Brown would proceed transferring ahead with a parallel lawsuit that DuPuis has pending Superior Court towards the lottery and two of its ex-officials — an motion that still would had been dropped beneath the March 10 settlement.

Brown stated each circumstances may price the lottery greater than $1 million, blended, if issues cross his shopper’s manner. Even if they do not, Brown stated the lottery’s felony prices in a a hit protection may means the $205,000 it will have paid now to get to the bottom of the circumstances.

No public clarification has been given for board’s rejection of phrases that its personal CEO agreed to.

The CLC’s director of public family members and social media, Tara Chozet, stated, “We are not commenting on pending legal matters.”

Irregularities and improprieties

The high-profile, quasi-public lottery company, which raised $370 million in state earnings closing yr, has spent a lot of money and time on a number of circumstances of litigation in fresh years.

Perhaps essentially the most outstanding was once the tumultuous sequence of hearings all through 2019 in DuPuis’ whistleblower case, presided over through Michele Mount, leader referee in the state Commission on Human Rights and Opportunities’ Office of Public Hearings.

DuPuis claims he’s owed economic repayment on account of the CLC’s retaliation towards him for blowing the whistle on irregularities and improprieties in the five Card Cash recreation, which needed to be close down in 2015 on account of fraud through lottery shops, various whom had been arrested.

He says the retaliation manifested itself early 2018, when he was once knowledgeable that he confronted self-discipline for alleged “gross neglect” over a million-dollar error made through his subordinates in the New Year’s Super Draw on Jan. 1 that yr. He was once placed on a short lived paid depart, however then took time he had coming and not returned to paintings, retiring past due that yr. He claims it was once his function in reporting issues of five Card Cash, no longer the Super Draw, that introduced on his issues.

Meanwhile, in a separate felony motion, DuPuis is suing the lottery company and two of its former high-ranking officers, ex-Vice President Chelsea Turner and ex-human assets director Jane Rooney, in search of unspecified damages for the “false and defamatory statement” that DuPuis had “acted with gross neglect in the execution of [his] duties.”

Under the now-rejected March 10 settlement, DuPuis would have dropped each that lawsuit and the whistleblower case.

The “terms sheet” for the settlement additionally had non-financial provisions, together with DuPuis’ and lottery executives’ settlement to not disparage each and every different.

It additionally stated either side would “agree not to seek publicity, but upon request from the media, will make the following statement and only the following statement:… ‘The CLC and Mr. Dupuis have resolved their differences and ended their dispute without admitting the claims or defenses of the other. The CLC thanks Mr. Dupuis for his many years of dedicated service.’ “

Judge’s order sought

The March 10 settlement report was once integrated through Brown as an show off with a May 17 movement that he filed as a part of DuPuis’ pending lawsuit towards the lottery, Turner and Rooney.

In that movement to “enforce settlement agreement,” Brown asked a court docket order that the March 10 settlement be implement, as agreed through DuPuis and Smith, with out the lottery board’s consent.

“Under the law the agreement is enforceable. The court has the authority to enforce,” Brown stated, including that “it should do so while simultaneously entering judgment in the plaintiff’s favor based on the documented terms of the settlement.”

The settlement phrases sheet known as for “payment by CLC in the amount of $205,000, apportionments to be determined, but not more than 50%… to wages, some percentage of which shall be subject to lawful withholdings. This amount is subject to CLC board approval.”

Brown interpreted that language to imply that the “amount” matter to board approval isn’t the entire $205,000, however “only of the apportionment of the settled amount… between wages and non-wage damages.”

No court docket listening to has been scheduled on Brown’s movement.

If Brown does not get anyplace with it, then the whistleblower continuing and the lawsuit towards the CLC, Turner and Rooney will possibly run their lessons.

In the whistleblower continuing, post-hearing felony briefs were scheduled for submitting through May 30. But Brown stated now he and Shea have agreed to invite for an extension to June 30 to report them.

He stated he did not know the way many months it might take the listening to officer, Mount, to factor a ruling after receiving the felony briefs.

Problems breed issues

DuPuis’ difficulties have spawned different issues for the lottery. For instance, because the whistleblower case improved in July 2019, there got here an unwelcome marvel: Turner, then nonetheless operating as lottery vp, testified at one of the crucial DuPuis hearings that she had contacted the FBI round 2014 with suspicions of wrongdoing through Frank Farricker, chairman of the lottery board on the time.

FBI brokers initiated an investigation all through which Anne Noble, the lottery’s president/CEO on the time, secretly recorded a minimum of one dialog with Farricker, the use of a listening tool hid in an eyeglass case.

The FBI investigation was once briefly close down for loss of proof. But Turner’s revelation of that federal probe induced the lottery’s present CEO, Smith, to droop her with pay later in July 2019 from her $190,000-a-year activity.

Turner by no means returned to paintings, the use of up depart time till she resigned previous this yr to take a role in Massachusetts for much less pay. She now has a lawsuit pending towards Smith and the lottery company claiming she was once defamed, broken and unjustly handled.

Meanwhile, Farricker filed a state Superior Court lawsuit closing December towards 3 previous lottery officers, together with Turner and Noble, claiming defamation and intentional infliction of emotional misery.

The pending court cases through Turner and Farricker could also be complicating any choice through the lottery board on whether or not to simply accept the settlement of DuPuis’ circumstances, Brown prompt in an April 27 e mail to Shea — one among a number of such communications between the legal professionals that Brown integrated as court docket reveals together with his May 17 movement.

“I have heard a rumor that the CLC will not sign off on the [DuPuis] settlement until they settle the Farricker and Turner cases,” Brown wrote. “I really hope that isn’t true.”

On April 30, Brown wrote to Shea, “Hi Jim: Based on our telephone name previous in the week, I’m anticipating to listen to from you in regards to the CLC’s place at the settlement phrases through the top of the week. If the Board continues to fail or refuse to do so, I will be able to continue with a movement to put into effect the settlement settlement early subsequent week.

“It is unconscionable to me to consider that the events, together with you and the insurer, participated in a pricey mediation in just right religion most effective to peer those indifferent individuals of the board fail to remember our laborious paintings and energy. Neither I nor my shopper will proceed to tolerate their smug habits.”

On May 6, Shea emailed Brown, pronouncing, “There is a gathering the next day. I consider that is an time table merchandise, however I have not seemed to verify that. That’s in point of fact all I do know. I let the buyer know your place closing week.”

No motion was once taken at the proposed settlement on the board’s May 7 assembly.

On May 17, Brown filed his movement forcing the problem through asking the pass judgement on to interfere. Three days later, on Wednesday, Shea gave him the inside track that the settlement were rejected.

Updated: May 22, 2020 — 7:59 pm

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