MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, July 1, 1999 Former Exec Sues Fido Robert G. Flater, formerly a president at FIRSCo (for the international defined contribution arm of the business), is suing his old employer, Paul T. Prew, one of the litigant's attorneys told InvestmentWires. While at the firm, he reported to Bob Reynolds. Flater is suing Fidelity for wrongful dismissal, emotional distress, and civil rights violations. "Fidelity is guilty of civil rights violations and violations of the public policy exception to the at-will employment doctrine," Prew, an attorney with DiMento & Sullivan, claimed. "In sum, Fidelity attempted to enforce Flater to forego his Constitutionally guaranteed Fifth Amendment rights in the context of a criminal indictment. When he failed to do so, he was terminated." The whole matter began in April 1998 when Flater was indicted and arrested on misdemeanor and felony counts nonpayment of personal taxes and his failure to file tax returns between 1992 and 1995. In May, he was arraigned on the charges. The lawsuit contends that he paid the back taxes as well as a $50,000 fine and was released. Flater's termination occurred on June 29, 1998. "The indictment involved purely private matters and did not involve Fidelity or his responsibilities with the firm. The indictment occurred prior to his employment with Fidelity," Prew continued. The attorney did not specify how much Flater was seeking in damages, but he did note that the plaintiff would be seeking to prove multiple millions of dollars in damages. "Right now we are at the beginning of the case. We filed our complaint. Fidelity has 20 days to respond. We did give Fidelity an opportunity to come to the table for pre-litigation discussions, and they refused," Prew contended. He estimated that if a trial were to occur it would be approximately 18 months from now. "An employer cannot inquire into the fact of their employees' private lives and take action based upon their reluctance to talk about those private facts," Prew concluded. During his tenure at Fidelity, Flater was based in the firm's London office, but also flew frequently to Boston, New York, Hong Kong, and Dublin. He made, according to an article in The Boston Globe, $900,000 a year and was being groomed for the top slot in the firm's Japan operations before his termination. He has been unemployed since. Fidelity has not yet commented on this story. Printed from: MFWire.com/story.asp?s=24300 Copyright 1999, InvestmentWires, Inc. All Rights Reserved |