The Minnesota Star Tribune is reporting on a strange case involving the former principal of Minneapolis-based RSP Architects & Planners after he filed a lawsuit alleging retaliation in response to his apparent discovery of missing funds. The employee in question, Todd Novak, claims he notified senior leadership that there was between $2-6 million absent from its balance sheets while in the process of applying internally for a CEO position.
The outlet says: "The suit accuses RSP of retaliation in violation of the Minnesota Whistleblower Act and seeks unspecified compensation for loss of income, mental anguish, emotional distress and other financial and emotional loss."
Novak was later laid off in a cost-saving move in March. Another caveat, per the Star Tribune: "The missing funds mattered for several reasons, including that RSP ran an employee stock ownership plan that was funded based on company profits."
9 Comments
Love to see it. One of the accused is an ahole
one? At least one but maybe more than one. Lets assume you meant at least one and we would be in agreement and leaving open the possibility of more than one ahole.
I think b3ta means one of the accused in particular. I used to practice in MN. I think I know the person b3ta is referring to. If I'm correct that person is a piece of garbage.
I just don't want to rule out any others that might be aside from the one in particular. Can you really blame me for not ruling out any other?
Considering assholism is contagious.
It's worth highlighting that the diversion of funds seems to amount to theft from the staff's ESOP. If that's the case I hope there are criminal charges.
The whole article is interesting to read. "Discretionary" can mean a lot of things but in this case it apparently isn't anything good for the workers!
Wow my jaw kept dropping lower. Looking forward to the fallout.
“Novak’s direct supervisor, Steve Fautsch, was in the meeting. Novak asked him why he was being fired if he had never received any negative feedback about his performance. Fautsch told him he had heard Novak was plotting to take his job — an accusation Novak vehemently denied.
When Novak said he felt he was being fired for bringing up the missing money, Norback said that RSP had the “cleanest financial records.” He sent a company-wide email later that day announcing the company had fired Novak.
In the following weeks, Novak would be given contradictory information about his firing. A board member told him the board never met to discuss firing him and that Norback and Fautsch had told the board they were firing Novak and “that was the extent of it.”
The lawsuit states that Novak believes the $2 million to $6 million that is unaccounted for is being “fraudulently diverted” to accounts that are hidden from the financial controller and are used at the discretion of Norback, Fautsch and Joe Tyndall, an executive who led RSP’s regional office in Phoenix before retiring in 2023.
Novak argues that this means RSP also “knowingly submitted inaccurate, and thereby fraudulent, overhead and associated financial statements to the federal government as required for federal contracts.”
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