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Andrea, Esq.
Andrea, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 11579
Experience:  25 yrs. of experience in employment law, real estate and business law, family law, criminal defense and immigration.
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I am the former CEO/Principal of a charter school that closed.

Resolved Question:

I am the former CEO/Principal of a charter school that closed. There are several issues:
1. I am trying to cover myself against all upcoming lawsuits particularly from staff who did not receive the two week promised bonus fo staying until the end, those 12 month staff who had to give up unused vacation as well as sick and personal time (this includes me)
2. I have already been called to testify in a case for a teacher who resigned in April and did not get the money he already earned that was scheduled to be paid out over the summer.
3. There is talk that the staff will file charges of misappropriation of funds by the former CEO who was also the CEO of the management company that handled all financial decisions and did not share information with the Board or school Administration
Submitted: 1 year ago.
Category: Employment Law
Expert:  Andrea, Esq. replied 1 year ago.

Hi, My name is XXXXX XXXXX my goal is to provided you with Excellent Service,

 

1. I have read your post, but did not see a question, What question may I Answer for you ?

 

 

2. Are you the CEO that the staff is referring to as the CEO of the management company and were you making all the financial decisions ?

 

 

3. Who made all the promises to the staff that they would receive a two-week bonus if they stayed on until the end of the school year ?

 

 

4. What role did the Board and the School Administration play in the situation which resulted in this acute deficit ?

 

 

5. What were you "pleading with the Board" about ?

 

 

 

Customer: replied 1 year ago.

My question is if I can protect myself from any lawsuits.


Can I do anything to help staff get the money they are owed?


I am NOT the CEO who runs the management company that is responsible for the promises. I took over in November of 2012 after all contracts and decisions were made by the HR Director and approved by the Board. I made virtually no decisions since the former CEO and management company did nor give me reliable information an were almost hostile when they did.


There is strong belief that there was "blending" of funds between the management company, title and IDEA funds were not used accurately and the Board knew nothing about what was really going on since the former CEO ran Board meetings, wrote the minutes and even approved and wrote checks for his management company's services without review by anyone at school. The same auditor was used for the school and management company


 


 

Expert:  Andrea, Esq. replied 1 year ago.

Thank you for your additional information,

 

 

As I am sure you know, anybody can sue anybody today, so I am assuming that you are asking how you can protect yourself from liability if you are named as a Defendant in a lawsuit.

 

Answer

 

If you are named as a Defendant in any lawsuit, you must bring in the former CEO as an "Additional Defendant". From what you have stated in your additional information, I cannot see any Judge holding you liable in any way. You handled no money, did not write out any checks, did not hold the books of account in your possession, and you made no financial decisions. The former CEO did everything and without anybody's approval, or consent. He made the financial decisions, he wrote out the checks, he apparently, never gave an accounting to anybody, and there is a strong belief that he was comingling funds (what you referred to as "blending"). Commingling of funds is strictly prohibited and if you got a forensic accountant to examine all of the books, you might even discover that he was appropriating funds to his own personal use and this would be "embezzlement" which is a crime by anybody's standards.

 

If you want to help the staff get some of the money that was promised to them, you must convince the staff that you are all on the same side and that you should join together in making a formal demand for an accounting from the former CEO. If he refuses (which he probably will), then you and the staff can file a lawsuit against the former CEO and whoever else was involved in his activities, demand an accounting and ask the Judge to award you and the staff members judgment against the former CEO in both his official capacity and in his individual capacity not only for the money that is owed to the staff members, but also for all amounts he appropriated to his own use, or transferred to any other company which he controlled. By getting a judgment against him in his official capacity, you will be able to collect from any bond that he may have had to put up in order to act as CEO. And, by getting judgment against him in his individual capacity, you will be able to ask the Sheriff to seize his assets and sell them at Sheriff's Sale in order to satisfy your judgment,

 

_____________________________________________________________________

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

 

Andrea, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 11579
Experience: 25 yrs. of experience in employment law, real estate and business law, family law, criminal defense and immigration.
Andrea, Esq. and 7 other Employment Law Specialists are ready to help you
Expert:  Andrea, Esq. replied 1 year ago.

Good afternoon,

 

I see that you have had the opportunity to review my Answer. Is there something
that I can clarify for you? If not, please be kind enough to rate my service to you so that I can receive credit for researching your question and furnishing you with Answers and information, otherwise I will not receive credit for assisting you. The deposit you made is with JustAnswer and it will not cost you anything additional to rate my service to you, but without a rating, I do not receive credit for my time and effort. Thank you for understanding

 

ANDREA

 

 

 

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