IBJNews

Ex-exec accuses JA of withholding retirement funds

Back to TopE-mailPrint

Junior Achievement of Central Indiana fired an executive after he allegedly took compensation he hadn't earned. But Victor George, the former executive vice president who was ousted, is trying to turn the tables on the not-for-profit.

George filed suit in federal court on Feb. 23, alleging Junior Achievement failed to remit money to his retirement and health-savings accounts, a violation of the Employment Retirement Security Act, or ERISA. He also claims JA fired him for complaining about the violation to the U.S. Department of Labor.

In addition, George claims JA violated his employement contract by cutting his pay 12 percent and by terminating him retroactively. The termination letter he received Jan. 11 said he was fired effective Dec. 31, according to the lawsuit, which did not include the letter as an exhibit. The letter came from an unnamed "outside legal counsel," George's lawsuit said.

The letter accuses George of "unethical and illegal" acts, including "theft, conversion and deception," in withdrawing $25,000 from his deferred-compensation account last December, the suit said.

George is claiming that not only was he entitled to the money because the account had vested on Dec. 1, but that JA defamed his reputation by accusing him of criminal conduct and sharing that statement with the organization's 32-member board of directors.

"He was a good steward of financial support from the Indianapolis community," George's attorney, Kathleen DeLaney, said. "He regrets that his exemplary career came to an abrupt end due to Junior Achievement's unlawful acts."

Heather Wilson of Frost Brown Todd LLC, the law firm representing JA in the case, could not be reached this week. JA officials did not return phone calls seeking comment.

In a response to the lawsuit filed March 15, JA admitted that it "mistakenly" failed to remit money to George's retirement and health-savings accounts, but says the issue was later rectified. JA denies that George was fired over his ERISA complaint or the defamation claim.

George, 49, had worked at JA affiliates in Columbus, Ohio, and Tampa, Fla., before coming to Indianapolis in 2006. He signed a four-year employment agreement starting July 1, 2006, with a base salary of $118,500. The contract provided for annual raises of 3 percent, or 5 percent if he met goals set by the CEO. The agreement also provided for the deferred-compensation plan, which was to vest on June 30, 2010.

CEO Jeff Miller, who retired at the end of 2008, amended that agreement on Dec. 1, 2008, and moved up the vesting date by seven months, to Dec. 1, 2009. George included Miller's letter as an exhibit with his lawsuit. In the letter, Miller said he changed the employment agreement because he was retiring six months earlier than expected.

In its response, JA said Miller did not have authority to amend George's employment contract without permission from the board of directors or its executive committee. JA also denied that the letter is part of George's personnel file.

It's unclear why current CEO Jennifer Burk and the board of directors would have been in the dark about a change to George's compensation. Burk became interim CEO Jan. 1, 2009, but according to JA's response, "Miller was still performing some services at that time."

George told JA about the potential ERISA violation, which he claims affected other employees as well, after Burk was appointed to the permanent CEO post on July 1. He notified the Labor Department in September and sent an e-mail to board Chairman Mark Shaffer in November.

JA remitted the money after some months, DeLaney said, but she said she doesn't consider the situation resolved because JA didn't reimburse George for the lost investment opportunity. The lawsuit does not mention how much money was involved in the potential ERISA violation, and DeLaney would not provide that detail.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Many serial killer types and psychopaths work as lowly bureaucrats, just waiting to impose their wrath on a powerless person, child, or pet. Don't forget, the BTK killer was a dog catcher.

  2. If a television station wants to improve viewership, get rid of the local blackout. I was born by the brickyard, and have attended 15 or more races. I have children now, I won't attend unless circumstances are perfect. As those with growing families know, they never are. I'm always impressed that upwards of 250,000 people attend the 500. However, as a growing, or, more apt, sprawling city, Indianapolis and its immediate suburbs count almost 2.2 million. Show the race live, let the venue get a kick-back on revenues, and open-wheel racing might have a fighting chance to be relevant again. Just in time for those tax-payer lights to make sense.

  3. John Moore, I too have had the same issue recently. A property next to my house was on the Land Bank and I was interested in purchasing. When I tried to contact Reggie, I got back emails that had nothing to do with what I asked about. Actually my latest response from him was on this past Friday. I had asked about how to buy the property and if it was still available. His response to me was to contact the mayor's office to get the schedule of his appearances. (???) Hopefully the city is able to do something to fix what this guy has done, it would be nice if they would take the properties back and sell them properly so land owners like me and you mother would have a fair chance.

  4. I too work in the industry, with over 25 years of experience and your political spin has probably nothing to do with any rebranding. "Let's dress it up" would have nothing to do with the government "telling us how and what to eat." Give it a political rest. And being a producer for a radio show doesn't mean you've been involved in advertising and branding for 30 years.

  5. Ms. Morris did not understand the ways of the business world, otherwise, like the IMS, she could have petitioned the State Legislature for a handout of State Funds for her charity work. Ms. Morris should consider becoming a state lobbyist for Lemonade Stand Operators.

ADVERTISEMENT