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Former New Jersey municipal employee claims wrongful termination

In one New Jersey town, a municipal authority is under investigation due to a wrongful termination suit filed against the organization. The former employee seeking remuneration for what he deems to be a wrongful termination was once a director at the entity. He claims he was fired because he questioned -- and later blew the whistle on -- what he says were unethical business practices by his then-employer.

The crux of the employee's wrongful termination suit swirls around the municipal authority's decision to move its considerable funds from one bank to another. Although this practice is reportedly not something that would normally be "red flagged," the former employee asserts that there were personal motives behind the move. Specifically, he claims that the move to a new bank was only made so the chairman of the municipal authority could receive a personal business loan worth $1.5 million from the second bank.

To support his case, the former employee says that, unlike what usually happens, there was no "bid" to move the municipal authority's funds, which amounted to more than $35 million annually. According to him, the board simply voted on the measure to move the funds because the director needed the personal business loan to pay back debts. An audit performed by an independent company corroborates those claims that there was no usual bidding practice, and appears to corroborate the assertion that an employee of the municipal authority did receive a loan after the organization moved its monies.

The man who filed this New Jersey wrongful termination suit is seeking back pay and punitive damages, among other items. He has filed under the Conscientious Employee Protection Act, as he feels he was terminated as a direct result of his "whistleblowing" to the FBI about his concerns three years ago. He was fired in 2012. The FBI has refused to comment further regarding the ongoing investigation.

Source: Asbury Park Press, Inside deal? Former Brick MUA director said commissioner got $1.5 million loan after MUA hired new bank, Nicholas Huba, Sept. 27, 2013

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