John Bowne Principal Howard Kwait Costs the City - and Taxpayers - Alot of Money

 Cant we simply get him fired or retired?

This one I really don't get.

Betsy Combier

 

Pervy principal keeps his job despite draining city in legal fees

By Selim Algar NY POST, June 11, 2015

 

The city also paid an undisclosed amount when, in 2012, it settled another harassment case against Kwait. That one was brought by an assistant principal who accused him of discrimination when she became pregnant.

Howard Kwait

 

In the latest suit, Catenacci claimed that Kwait pressed her to go home with him after an alcohol-soaked retirement party for a colleague and attempted to straddle her at another school related event.

“Mr. Kwait made numerous sexual advances towards Ms. Catenacci,” the suit, brought by attorney Steven Morelli, states.

Knowing she was a lesbian, Kwait profanely interrogated her about her sexual interest in other female staffers at the school, the suit stated. When she rebuffed his advances, Kwait revoked her teaching responsibilities and undermined her, the suit said.

Maya, meanwhile, accused Kwait of criticizing her for getting pregnant and taking time off.

 

Despite his legal woes, Kwait remains principal at the school, where the motto is “the relentless pursuit of success,” according to its Web site.

“We are reviewing Mr. Kwait’s status,” said Department of Education spokeswoman Devora Kaye.

A randy Queens high-school principal has cost the city more than a half a million dollars to settle sexual-harassment suits brought by staffers and students — and he’s still on the job.

John Bowne HS Principal Howard Kwait presented the latest hefty tab to taxpayers on Thursday, when the city agreed to give a combined $275,000 to two former assistant principals who accused him of everything from lewd advances to fudging grades.

Maria Catenacci and Sally Maya were so disgusted by Kwait’s boorish antics that they resigned their positions, court papers state. Maya agreed to settle her case for $150,000 and Catenacci for $125,000.

“It was best for the city to settle,” a spokesman told the Post.

It’s not the first time Kwait’s antics cost the city cash. A 2012 suit against him by a student’s family, who said the girl was falsely accused of sending staffers threatening e-mails, was settled by the city for $225,000.

“We settled after evaluating the facts and the risks of proceeding with the litigation,” said a city Law Department spokesman.

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From this blog in 2014:

FRIDAY, JANUARY 31, 2014

COIB Fines Principal Howard Kwait of John Bowne High School...Again

Principal of John Bowne High School in Queens fined for jaunts paid for by aide

The aide to Howard Kwait, principal of John Bowne High School, spent more than $11,000 on getaways for the pair to Greece then to Greece, Italy, Turkey and Croatia.

Comments (2)

BY BEN CHAPMAN AND CORINNE LESTCH / NEW YORK DAILY NEWS

FRIDAY, JANUARY 31, 2014, 12:48 AM

LINK

John Bowne High School at 63-25 Main St. in Queens. The principal of the school has been fined for going on trips with his aide on his or her dime.

A troublemaking Queens principal was slapped with a $4,500 fine for taking jaunts overseas with his school aide on the assistant’s dime, the city’s Conflicts of Interest Board said Thursday.

The aide to Howard Kwait, 36, principal of John Bowne High School in Flushing, spent more than $11,000 for the getaways.

RELATED: MEETING PACK'S LOMBARDI INSPIRED PREP'S O'CONNOR

The board didn’t reveal the aide’s name or gender.

The pair first went to Greece in 2011, and then to Italy, Greece, Turkey and Croatia in 2012.

RELATED: EX-BRONX PRINCIPAL FIRED FROM PA. CATHOLIC SCHOOL

Kwait, the school’s principal since 2006, received a disciplinary letter in his file. He referred all questions for comment to the Education Department.

It’s not the first time Kwait, who makes $145,000 a year, has been disciplined. He received a letter in his file for stealing food from the cafeteria and cursing at employees, among other transgressions.

RELATED: BRONX HIGH SCHOOL REOPENS TEN DAYS AFTER FLAMES RAVAGE BUILDING

He was also named in a 2012 lawsuit filed by the daughter of an Indian diplomat who was wrongly accused of cyberbullying her teacher at John Bowne.

Saturday, June 11, 2011

Principal From Hell Strikes Again: Howard Kwait, John Bowne High School



Howard Kwait

 I know a teacher undergoing his "trial" (3020-a) right now, whom I believe was falsely accused by the principal, Howard Kwait. When this teacher was removed from his school and criminalized like so many other innocent victims of the Bloomberg-Klein-Black-Walcott regime, where was the outrage?

Principal Kwait made a huge error in allowing an arrest of the daughter of a diplomat from India, but he also made the false claims process of the Gotcha Squad an international issue.Krittika Biswas was accused of sending obscene emails to her teacher. Of course there was no real "investigator" on hand to ask what the facts in the case really were before arresting her, happens every day to an unsuspecting teacher. Now, the improper and scandalous violation of rights is international. Perhaps something will change? Richard Condon and his riot police may be investigated? It's certainly time for that to occur.

Why cant the press expose principals who terrorize New York City public school teachers?

Round-Up: The Strange Case of Krittika Biswas
Wall Street JournalLINK

India’s media erupted with indignation today over the case of Krittika Biswas, the daughter of an Indian diplomat serving at the Indian Consulate General in Manhattan, who claims she was wrongfully arrested after being falsely accused of sending obscene emails to her school teacher, according to reports.

The 18-year-old was reportedly kept in custody for more than 24 hours on Feb. 8 and also was sent for more than a month to a special suspension program by her school despite being cleared by investigators. She filed a notice of claim May 6 saying that she is suing New York City, among others, for $1.5 million.

Ms. Biswas had reportedly tried to claim diplomatic immunity. But a U.S. State Department spokesman, Mark Toner, was quoted by NDTV as saying that the immunity does not extend to family members of diplomats.

A spokeswoman for the U.S. embassy in New Delhi said in an emailed statement: “We are aware of press reporting regarding filing of a lawsuit by the daughter of an Indian consular officer. However we have no comment on this ongoing litigation.”

The Deccan Herald reported that Krittika felt ill-treated in custody, saying: “Krittika alleged that she was not allowed to use the bathroom for a long-time”. It added some other unsavory details, “that she couldn’t drink water from a water fountain because it had another person’s vomit, and although it was really cold, she could not use the blanket because it was really dirty.”

In addition to the lawsuit, the girl’s lawyer also suggested that the City’s mayor, Michael R. Bloomberg, give her a key to the freedom of the city. But Mr. Bloomberg seemed unlikely to grant the request, according to The New York Post (which, like The Wall Street Journal, is owned by News Corp.)

Ms. Biswas is gaining some support for her plight on Facebook. A group called “’Krittika Biswas’-Price of Every Tear Will Be Paid” was set up this morning. The group as of Thursday afternoon had 86 “likes.” But it remains to be seen what broader ramifications her case may have. “We don’t know if such strange kind of events will really have an impact on India-U.S. relations,” said one Indian official.

Indian diplomat's daughter claims she was falsely arrested for obscene emails 

By YOAV GONEN, NY POST, May 24, 2011LINK

An Indian diplomat’s daughter who claims she was falsely arrested and suspended for sending obscene emails to teachers at her Queens high school is suing the city for a whopping $1.5 million – and even a key to the city, her lawyer said today.

In a notice of claim filed on May 6, John Bowne HS senior Krittika Biswas, daughter of the vice counsel at the Consulate General of India in Manhattan, Debashish Biswas, said her claims of diplomatic immunity were ignored when she was cuffed and locked up for more than 24 hours on Feb. 8 after a shoddy probe by administrators into the emails.

Even after the Queens DA dropped the charges and expunged her arrest from the record, school officials booted the 18-year-old girl to an offsite suspension center for more than a month, according to the claim.

It was only after principal Howard Kwait found the real perpetrator that Biswas was allowed back into school.

“The basis for this targeted inquiry was as criminally malicious as it was reckless,” Biswas’s lawyer Ravi Batra said during a news conference.

In addition to unspecified compensatory and punitive damages, Batra curiously suggested that Mayor Bloomberg could perhaps give “a key to the City to Krittika Biswas as a token of heartfelt sorrow for the unbecoming pain inflicted upon her.”

Batra also claims that officers failed to read Biswas Miranda rights and "continued to inquire about her computer usage."   

 

NYS Releases New Proposed Regulations For Teacher Evaluations

NYS Regents Judith Chin, Kathleen Cashin, Merryl Tisch

Teacher evaluation regulations further reduces role of state tests, outside observers

By Geoff Decker

gdecker@chalkbeat.org

 

 

LINK

The state released proposed regulations for New York’s new evaluation law on Friday that would allow districts to further reduce the role of standardized tests and outside observers.

That regulations are set to be discussed Monday at a highly anticipated Board of Regents meeting, days after seven of 17 members signed onto a position paper that recommended its own version of regulations. The state’s proposal, which needs Regents approval, includes some options that address some of the paper’s demands.

The regulations don’t include anything about delaying implementation of the new teacher evaluation system, a key demand of the dissenting Regents that also has the support of the city teachers union and thecity Department of Education. The state department has said it would create a system for districts to apply for extra time, in two-month increments, to delay implementation. But the regulations don’t make it any clearer how districts will qualify for those waivers.

The proposed regulations, which are summarized in this slideshow, include some significant changes to the initial proposals that state officials presented last month. Those changes include:

• A further reduction in the role of state tests for districts that opt to use a secondassessment to evaluate teachers. Student growth on the state tests would be allowed to count for as little at 50 percent of the student performance portion of a teacher’s rating if used in conjunction with other assessments, such as the performance-based tasks used in New York City, that the state deems to be of high quality. Previously, the state had proposed that state tests count for as much as 80 percent of the student performance measurement.
• An even more diminished potential role for outside evaluators. The state will allow principals observations to count for up to 90 percent of a teacher’s observation portion of evaluations, up from 80 percent.
• New language allowing the state to step in and make changes to local collective bargaining agreements “if a district’s system does not result in meaningful feedback for teachers and principals.”

The regulations aren’t likely to satisfy the Regents who voiced their criticism this week. Their position paper calls for all districts to be given one year to implement the evaluations and state test scores to count for no more than 20 percent of the entire evaluation.

It’s shaping up to be a busy agenda for next week’s Board of Regents meeting:

• A vote on updated regulations about what would have to happen in low-performing schools under the state’s new receivership law. One symbolic change is that they won’t be referred to “failing” any more in regulatory language. New York City has 12 schools that could face a more intensive turnaround plan next year while dozens of others have two years to improve.

• A data dump of teacher certification pass rates, broken down by individual schools of education. The state is trying to improve teacher quality by making it harder to get certified, a policy that has revealed racial achievement gaps and attracted new legal scrutiny. But Chancellor Merryl Tisch said last month that the failures are “clustered in very few schools.”

• Long-term renewals for five charter schools authorized by the Department of Education: Achievement First Endeavor (five years), Community Roots (five years), International Leadership (four years), the New York Center for Autism (five years) and Renaissance (four years). Some of the schools included letters from the school either defending their enrollment numbers, or explaining what they’ll do to serve more needy students.

• A discussion on collecting teacher-attendance data as a way to monitor equity across all schools.

Going To The Bathroom is Not Easy if You Are An ATR

The ATR bathroom problem is just not right, and the UFT seems to be doing nothing to help.

What is the problem?

Principals think that they can get away with treating some staff members - ATR ("Absent Teacher Reserve") folk - like trash. And, it seems, they can.

Take the issue of getting a bathroom key.

Sometimes, the administration of a school says "no" to a key.

Then what do you do?

Grieve.

Access to Toilet Facilities

LINK

OSHA’s Sanitation Standard 1

OSHA’s Sanitation Standard as It Applies to Access to Toilet Facilities

The Occupational Safety and Health Administration (OSHA) Sanitation Standard (29 CFR 1910.141(c)(1)(i) requires employers to provide their employees with toilet facilities. This standard is enforced by the New York State Department of Labor Public Employees Safety and Health Bureau (NYSDOL PESH) for public employees.

Employers must provide the appropriate number of toilet facilities as per this standard. In addition to the actual standard, OSHA issued an interpretation of the standard on April 6, 1998. PESH must also apply OSHA’s interpretation. According to OSHA:

Timely Access is the Goal of the Sanitation Standard

·         The sanitation standard is intended to ensure that employers provide employees with sanitary and available toilet facilities so that employees will not suffer the adverse health effects that can result if toilets are not available when employees need them.

·         The language and structure of the standard reflect OSHA’s intent that employees be able to use toilet facilities promptly.

·         Timely access is the goal of the standard.

·         Employers must make toilet facilities available so that employees can use them when they need to do so.

·         The employer may not impose unreasonable restrictions on employee use of the facilities.

Individuals vary in their need to use toilet facilities

·         OSHA does not specify a time limit for access because individuals vary significantly in the frequency with which they need to use toilet facilities.

·         Pregnant women, women with stress incontinence, and men with prostatic hypertrophy need to urinate more frequently.

·         Increased frequency of voiding may also be caused by various medications, environmental factors such as cold, and by high fluid intake.

·         Diet, medication use and medical conditions may also affect the need to use the facilities frequency.

OSHA/PESH Citation Policy

·         OSHA will evaluate employee complaints of restrictions on toilet facility use on a case-by-case basis to determine whether the restrictions are reasonable.

·         Careful consideration must be given to the nature of the restriction, including the length of time that employees are required to delay bathroom use and the employer’s explanation for the restriction.

·         The investigation should examine whether restrictions are general policy or arise only in particular circumstances or with particular supervisors, whether the employer policy recognizes individual medical needs, whether employees have reported adverse health effects, and the frequency with which employees are denied permission to use the toilet facilities.

OSHA/PESH requires that a minimum of:

·         6 toilet facilities (water closets) to be provided when there are 111–150 employees

·         5 toilet facilities to be provided when there are 81–110 employees

·         4 toilet facilities to be provided when there are 56–80 employees,

·         3 toilet facilities when there are 36–55 employees

·         2 toilet facilities when there are 16–35 persons

·         1 toilet facility when there are 1–15 persons

Where there are over 150 persons there must be one toilet facility for each additional 40 persons. Where toilet rooms will be occupied by no more than one person at a time and can be locked from the inside, separate rooms for each sex need not be provided. Under no circumstances should staff and students use the same bathroom.

 

Whistleblower Financial Mismanagement Case Fisch v New Heights Academy Charter School (2012)

Gene Fisch filed a False Claims Act (FCA) case in Federal Court against New Heights Academy Charter School and its administrators in 2012.

Judge Denise Cote's ruling:
"The defendants' May 15, 2012 motion to dismiss is granted as to Fisch's  [*20] claims against the Individual Defendants, and denied as to Fisch's claim against the School under the whistleblower provisions of the FCA. This ruling disposes of all claims against the Individual Defendants. The Clerk of Court shall remove defendants Winnitt, Grossmann, Davis, and Rampoltd from the case."

In July, 2013, a settlement was agreed to by all parties:
JOINT MOTION TO STAY THIS ACTION PLEASE TAKE NOTICE that, Plaintiff Gene Fisch Jr. and Defendants New Heights Academy Charter School have reached a tentative agreement to settle this action. The parties jointly move this Court for a stay of the litigation in order to finalize their Settlement Agreement. Once this Agreement is executed, the parties will submit a Stipulation of Dismissal. Dated: July 9, 2013

Below is the Cote Decision.

Betsy Combier

GENE FISCH, JR., Plaintiff, -v- NEW HEIGHTS ACADEMY CHARTER SCHOOL, a corporation; STACY WINITT, individually and as Executive Director of New Heights Academy Charter School; GAIL GROSSMAN, individually and as Board President of New Heights Academy Charter School; JENNIFER DAVIS, individually and as Board Vice President of New Heights Academy Charter School; and JOEL RAMPOLDT, individually and as a Board Member of New Heights Academy Charter School, Defendants.

12 Civ. 2033 (DLC)

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
2012 U.S. Dist. LEXIS 131603

September 13, 2012, Decided 
September 13, 2012, Filed

 

CORE TERMS: finances, audit, accounting, citation omitted, invoices, purchase orders, whistleblower, retaliation, federal funds, protected conduct, expenditures, improprieties, notice, breach of contract, investigating, federal government, contract claims, cause of action, terminated, viable, individual liability, qui tam, furtherance, reimbursed, uncovered, assigned, fiscal, handle, caught, jail

COUNSEL:  [*1] For Plaintiff: Jeremy Heisler, Steven L. Wittels, Andrew Melzer, Sanford, Wittels & Heisler, LLP, New York, NY; David W. Sanford, Thomas J. Henderson, Brandon Jamison, Sanford, Wittels & Heisler, LLP, Washington, DC.

For Defendants: Marjorie Kaye Jr., Samantha Abeysekera, Jackson Lewis LLP, New York, NY.

JUDGES: DENISE COTE, United States District Judge.

OPINION BY: DENISE COTE

OPINION

OPINION & ORDER

DENISE COTE, District Judge:

Plaintiff Gene Fisch, Jr. ("Fisch") brings this action against defendants New Heights Academy Charter School (the "School"), Stacy Winnitt ("Winnitt"), Gail Grossmann ("Grossmann"), Jennifer Davis ("Davis"), and Joel Rampoldt ("Rampoltd") pursuant to the whistleblower provisions of the False Claims Act ("FCA"), 31 U.S.C. § 3730(h), and New York State law. The defendants have moved to dismiss Fisch's complaint (the "Complaint") in part, pursuant to Rule 12(b)(6), Fed. R. Civ. P. For the following reasons, the motion is granted in part.

BACKGROUND

The following facts are drawn from the complaint and are presumed to be true for purposes of this motion. The School is a charter school in New York City. It submits requests for and receives federal funding to support its operations. Fisch alleges that  [*2] under the relevant federal regulations, the School is required to use proper fiscal control and fund accounting procedures to ensure that expenditures reimbursed by federal funds are authorized in advance, are made for eligible expenditures only, and are actually reported. See 34 C.F.R. Part 80. In order to justify receipt of funds and avoid having to repay them, Fisch claims, the School is required to account for its expenditures accurately and fully. See id. at §§ 80.20, 80.21.

Winnitt, Grossmann, Davis, and Rampoltd (collectively, the "Individual Defendants") are members of the School's Board of Trustees (the "Board"). Winnitt is the School's Executive Director.

In July 2008, Fisch was hired to serve as the School's Chief Operating Officer ("COO") in order to help the School handle its finances. At this time, the School had stated policies on "Separation" and "Code of Ethics and Conduct," as well as a "Whistleblower Policy." Fisch alleges that these policies and other School policies were incorporated into his employment contract. When Fisch began his employment, the School was in the process of providing information to an outside firm for an annual independent audit. Once completed,  [*3] the results of that audit would serve as the School's statement to the federal government justifying its receipt of federal funds.

Upon becoming COO, Fisch conducted his own internal audit of the School's finances. He soon uncovered a number of financial accounting improprieties. Specifically, he discovered that the School had not required the regular use of purchase orders prepared and approved in advance, had not reviewed and separately approved invoices before payments were made, and had falsified, forged, and backdated certain approved purchase orders and invoices at the direction of Winnitt. Fisch also discovered that approximately $250,000 in invoices, many of them past due, had not been paid by the School, and that Winnitt had directed that a demolition take place in relation to a construction project at the School without the requisite permits and authorizations.

In July 2008, Fisch reported these financial improprieties to Winnitt, Grossmann, Rampoltd, and other members of the Board, and argued that the improper practices should be halted and corrected. Winnitt responded that the School was "too small to get caught." Fisch also reported his concerns at a meeting of the Board's  [*4] Finance Committee.

In August and September, Fisch again spoke with Winnitt about the School's improper financial and unauthorized construction practices, and stated his intention to follow up with the Finance Committee. Winnitt responded with hostility. She told Fisch not to worry about the past and repeated her belief that the School was "too small to get caught." She also instructed Fisch not to speak with the Finance Committee about any improprieties and to clear any communications with the Finance Committee with her. She informed him that she would sit in on all his conference calls with the Finance Committee in the future, and threatened his employment.

In September, Fisch informed the Board and the Finance Committee that the School's accounting for federal funds from 2007—08 was inaccurate, that the numbers used for the 2008 audit were not credible, and that he did not want to sign off on the audit without redoing the numbers. That same month, he told Grossmann and Ramboldt that he believed the School was misappropriating funds, that "someone could go to jail," that he had seen a lawyer about the School's practices, and that Winnitt was retaliating against him for investigating  [*5] and reporting these issues. Fisch again expressed his concerns to Winnitt in October, and she again brushed them aside. She instructed him never again to discuss his concerns with the Board and to remove references to improper accounting practices from his Finance and Operations Report to the Board.

The 2008 audit by the outside firm was produced in October. It found a number of deficiencies in the School's fiscal control and accounting practices, which supported many of Fisch's findings. The deficiencies included a lack of approval signatures on purchase orders and invoices, and the School's inability to locate certain purchase invoices.

Fisch continued to voice his concerns about the School's financial practices from October to December. He received a negative mid-year performance review from Winnitt on December 29. Winnitt said that she would provide Fisch with an improvement plan for him to follow, but failed to do so.

From January through March 2009, Fisch prepared a synopsis of the 2008 audit findings. During this period, he informed Winnitt of his discomfort with the figures in the audit and with submitting those figures to the federal government. Nevertheless, the audit was submitted [*6] to the federal government with Winnitt's signature. Fisch alleges that this submission, along with the submission of other statements regarding amounts to be paid or reimbursed to the School with federal funds, violated the FCA, 31 U.S.C. § 3729(a)(1).

In mid-March, after Fisch informed the Finance Committee that expenditures did not match grant budgets, Winnitt became angry with him. On March 18, the Board's treasurer agreed with Fisch regarding certain of the School's financial improprieties and indicated that he would raise the matter with the Board. On March 20, 2009, Winnitt terminated Fisch's employment in retaliation for his investigation and reports, stating that he was "not a good fit" at the School. Fisch's last day at work was May 15 and his last day on payroll was May 31.

Fisch filed the Complaint on March 19, 2012, alleging claims against the School and the Individual Defendants for violations of the whistleblower provisions of the FCA, 31 U.S.C. § 3730(h), and for breach of his employment contract with the School. On May 15, the defendants moved to dismiss the FCA claims against all defendants and the breach of contract claims against the Individual Defendants only. The  [*7] motion to dismiss was fully submitted on July 10.

DISCUSSION

On a motion to dismiss under Fed. R. Civ. P. 12(b)(6), the court must "accept all allegations in the complaint as true and draw all inferences in the non-moving party's favor." LaFaro v. New York Cardiothoracic Grp., PLLC, 570 F.3d 471, 475 (2d Cir. 2009) (citation omitted). To survive a motion to dismiss, "a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L. Ed. 2d 868 (citation omitted). The court is "not bound to accept as true legal conclusions couched as factual allegations." Id. at 1950-51.

Applying this plausibility standard is "a context-specific task that requires the reviewing court to draw on its judicial experience and common sense." Id. at 1950. There must be a "reasonably founded hope that the discovery process will reveal relevant evidence." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 563 n.8, 127 S. Ct. 1955, 167 L. Ed. 2d 929 (2007) (citation omitted). "Plausibility thus depends on a host of considerations: the full factual picture presented by the complaint, the particular cause of action and its elements, and the existence of alternative explanations  [*8] so obvious that they render plaintiff's inferences unreasonable." L-7 Designs, Inc. v. Old Navy, LLC, 647 F.3d 419, 430 (2d Cir. 2011).

I. FCA Claims

The FCA "authorizes private citizens to sue on behalf of the United States to recover treble damages from those who knowingly make false claims for money or property upon the Government or who knowingly submit false statements in support of such claims or to avoid the payment of money or property to the Government." U.S. ex rel. Lissack v. Sakura Global Capital Mkts., Inc., 377 F.3d 145, 146 (2d Cir. 2004). The wrongful activity must be linked "to the government's decision to pay" a claim. Mikes v. Straus, 274 F.3d 687, 696 (2d Cir. 2001).

The Complaint alleges violations of the FCA's whistleblower provision, 31 U.S.C. § 3730(h) ("Section 3730(h)"), which, at the time of the events at issue in the Complaint, provided as follows:

Any employee who is discharged . . . by his or her employer because of lawful acts done by the employee on behalf of the employee or others in furtherance of an action under this section, including investigation for, initiation of, testimony for, or assistance in an action filed or to be filed under this section,  [*9] shall be entitled to all relief necessary to make the employee whole. Such relief shall include reinstatement with the same seniority status such employee would have had but for the discrimination, 2 times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorneys' fees.

31 U.S.C. § 3730(h) (subsequently amended in 2009).

In order to sustain an action under 31 U.S.C. § 3730(h), Fisch must prove that: 1) he engaged in conduct protected under the statute; 2) his employer knew that he was engaged in such conduct; and 3) he was terminated in retaliation for the protected conduct. See, e.g.,Mendiondo v. Centinela Hosp. Med. Center, 521 F.3d 1097, 1104 (9th Cir. 2008). Fisch has adequately pled each of the above elements with respect to the School. He has not done so with respect to the Individual Defendants, however, because they do not qualify as "employers" within the meaning of the statute.

A. The Individual Defendants' Liability

The Individual Defendants, which consist of the School's Executive Director and other members of the Board, cannot be liable under Section 3730(h)  [*10] because they do not qualify as employers for purposes of the statute. Section 3730(h) imposes liability only on employers. See, e.g., U.S. ex rel. Siewick v. Jamieson Sci. & Eng'g, Inc., 322 F.3d 738, 740, 355 U.S. App. D.C. 278 (D.C. Cir. 2003). Because the FCA does not define the term "employer," it is given its ordinary common law meaning. See United States v. Texas, 507 U.S. 529, 534, 113 S. Ct. 1631, 123 L. Ed. 2d 245 (1993). Accordingly, it is the corporation only, not its officers, that is the employer of the corporation's employees. See Meyer v. Holley, 537 U.S. 280, 286, 123 S. Ct. 824, 154 L. Ed. 2d 753 (2003); cf. Tomka v. Seiler Corp., 66 F.3d 1295, 1313-17 (2d Cir. 1995) (holding that the word "employer" does not cover a supervisor in his personal capacity for cases arising under Title VII). The motion to dismiss thus successfully disposes of Fisch's FCA whistleblower claims against the Individual Defendants.

Fisch points to a handful of out-of-Circuit cases in which district courts allowed Section 3730(h) claims to go forward against individual defendants. In light of the clear language of the statute, however, this Court joins the overwhelming balance of authority holding otherwise. See, e.g., Yesudian ex rel. U.S. v. Howard Univ., 270 F.3d 969, 972, 348 U.S. App. D.C. 145 (D.C. Cir. 2001)  [*11] ("Section 3730(h) plainly mentions only the 'employer' as incurring liability, and the word 'employer' does not normally apply to a supervisor in his individual capacity.").

Fisch notes that Congress amended Section 3730(h) on May 20, 2009 to exclude the word "employer," see Pub. L. 111-21, § 4(f)(1), (2), effective May 20, 2009, and that at least one court in this Circuit has held that this amendment allows for FCA retaliation claims against individual defendants. See U.S. ex rel. Moore v. Cmty. Health Servs., Inc., 3:09 CV 1127 (JBA), 2012 U.S. Dist. LEXIS 43904, 2012 WL 1069474, at *9 (D. Conn. Mar. 29, 2012). Fisch urges this Court to hold the same. Fisch concedes, however, that the 2009 amendments to Section 3730(h) do not apply retroactively. See id. Fisch was terminated on March 20, 2009 and his last day at work for the School was May 15, 2009. He does not allege that the defendants engaged in any form of retaliatory conduct after May 20, 2009 that might give rise to liability under Section 3730(h). Thus, even if the 2009 amendments to the FCA had the requisite effect on individual liability, they have no impact on the individual liability of these defendants.

B. Protected Conduct

In order for an employee's  [*12] actions to constitute "protected conduct" under Section 3730(h), they must have been "in furtherance of an action under the FCA." Garcia v. Aspira of New York, Inc., 07 Civ. 5600 (PKC), 2011 U.S. Dist. LEXIS 41708, 2011 WL 1458155, at *4 (S.D.N.Y. Apr. 13, 2011) (citation omitted). In other words, the employee "must have been investigating matters that were calculated, or reasonably could lead, to a viable FCA action." Shekoyan v. Sibley Int'l, 409 F.3d 414, 423, 366 U.S. App. D.C. 144 (D.C. Cir. 2005) (citation omitted). Although it is not necessary for the plaintiff actually to file a qui tam lawsuit, or even "to know that the investigation could lead to" such a suit, id. (citation omitted), mere investigation of an employer's non-compliance with federal regulations is not enough. See Faldetta v. Lockheed Martin Corp., 98 Civ. 2614 (RCC), 2000 U.S. Dist. LEXIS 16216, 2000 WL 1682759, at *12 (S.D.N.Y. Nov. 9, 2000). The plaintiff's investigation must be "directed at exposing a fraud upon the government." Moor-Jankowski v. Bd. Of Trustees of New York Univ., 96 Civ. 5997 (JFK), 1998 U.S. Dist. LEXIS 12305, 1998 WL 474084, at *10 (S.D.N.Y. Aug. 10, 1998) (citation omitted).

The allegations in the Complaint more than meet this standard. Fisch claims that he investigated a variety of financial improprieties  [*13] in connection with the School's submission of the 2008 audit and other statements regarding amounts to be paid or reimbursed to the School with federal funds. He alleges that he uncovered widespread accounting irregularities, including the School's failure to use purchase orders prepared and approved in advance, its failure to review and separately approve invoices before making payments, and its falsification, forgery, and backdating of certain approved purchase orders and invoices at the direction of Winnitt.

Drawing all inferences in Fisch's favor, he plausibly alleges that he gathered facts and information about defendant's conduct that reasonably could have led to a viable FCA action, and that his actions were directed at exposing fraud upon the government. Fisch's activities went beyond mere investigation of his employer's failure to comply with federal regulations. He informed members of the Board that "someone could go to jail" if the relevant financial information was submitted to the government, and went so far as to tell Board members that he had consulted with an attorney. Although Fisch did not actually file a qui tam action against the School, the Complaint alleges violations  [*14] of accounting and fiscal control regulations intimately associated with the payment of federal grants. See 34 C.F.R. §§ 80.20, 80.21. And it alleges that these violations included fraudulent submissions, including intentionally falsified, forged, and backdated approved purchase orders and invoices.

The defendants argue that Fisch's actions do not constitute "protected conduct" because, in investigating the School's finances and audit procedures, he was simply acting in his capacity as COO. They note that the Complaint states that Fisch was hired "to help the School handle its finances," and that "sign[ing] off" on the audit was one of his job responsibilities. They further note that the Complaint does not cite any discrete false statements submitted to the government for payment or reimbursement, or allege that the School's purchase orders and invoices did not correspond to actual School expenditures. The sum total of the allegations in the Complaint, defendants argue, amount to a claim that Fisch investigated the School's failure to abide by the relevant accounting regulations.

These arguments misconstrue the standard for pleading a Section 3730(h) violation and the nature of the allegations  [*15] in the Complaint. To state a viable claim under Section 3730(h), the plaintiff need not plead his fraud allegations with particularity. See Mendiondo, 521 F.3d at 1103. It is necessary only that he be "investigating matters that were calculated, or reasonably could lead, to a viable FCA action." Shekoyan, 409 F.3d at 423 (citation omitted). The investigation of large-scale financial irregularities and accounting failures addressed in the Complaint, which were allegedly included in submissions filed with the federal government to justify payment or reimbursement of federal funds, more than meet this standard.

C. Notice

To satisfy the second element of an FCA retaliation claim, Fisch must adequately plead that the School knew he was engaged in protected conduct. "Absent such notice, then a fortiori, [the School's] actions could not constitute retaliation." Faldetta, 2000 U.S. Dist. LEXIS 16216, 2000 WL 1682759, at *13 (citation omitted). Naturally, an employee who simply engages in behavior wholly consistent with his job description will not, without more, provide notice that he is acting "in furtherance" of an FCA action. See Eberhardt v. Integrated Design & Constr., Inc., 167 F.3d 861, 868-69 (4th Cir. 1999). Accordingly,  [*16] an employee assigned the task of investigating fraud within a company must go beyond the assigned task and put his employer on notice that an FCA action is "a reasonable possibility." Id. at 869.

Fisch has satisfied this element. He alleges not only that he helped the School handle its finances and prepare its 2008 audit and other submissions in accordance with his job responsibilities as COO, but also that he warned the members of the Board of possible legal consequences of the financial improprieties he uncovered. Fisch told Board members that "someone could go to jail" as a result of the School's improper accounting practices, and that he had consulted with an attorney. Fisch further alleges that Winnitt explicitly acknowledged that the School's actions were improper or illegal by stating that the School was "too small to get caught." Irrespective of the nature or scope of Fisch's assigned job responsibilities, a reasonable factfinder could conclude that the School was on notice of a potential FCA action. "[C]haracterizing the employer's conduct as illegal . . . or recommending that legal counsel become involved" is sufficient to provide notice to an employer of a potential qui tam  [*17] lawsuit, even if these statements come from an employee "tasked with the internal investigation of fraud against the government." 

D. Retaliation

Fisch has adequately pled facts that, if proven, would permit a jury to conclude that his employment was terminated in retaliation for his protected conduct. Fisch claims that he was fired mere days after Winnitt became angry with him for informing members of the Finance Committee that expenditures did not match grant budgets. The Complaint describes a pattern of retaliatory behavior by Winnitt that culminated in Fisch's firing: Winnitt initially resisted Fisch's efforts to investigate financial and accounting practices at the School, then she limited his authority to speak independently with the Board and the Finance Committee and threatened his employment. Next, she punished him through a poor performance review, and finally she fired him. These allegations are sufficient to allow Fisch's claim to go forward.

II. Breach of Contract Claims

Fisch alleges that the defendants breached his contract with the School by, inter alia, violating the School's stated policies on "Separation" and "Code of Ethics and Conduct," and its "Whistleblower  [*18] Policy." The defendants seek dismissal of the breach of contract claims against the Individual Defendants only. The parties do not argue that any law other than New York law applies. "[W]here the parties agree that New York law controls, this is sufficient to establish choice of law." Federal Ins. Co. v. American Home Assurance Co., 639 F.3d 557, 566 (2d Cir. 2011).

To state a claim for breach of contract under New York law, "a complaint need only allege (1) the existence of an agreement, (2) adequate performance of the contract by the plaintiff, (3) breach of contract by the defendant, and (4) damages." Eternity Global Master Fund Ltd. v. Morgan Guar. Trust Co. of N.Y., 375 F.3d 168, 177 (2d Cir. 2004) (citation omitted). It is black letter law, however, that generally "one who is not a party to a contract cannot be held liable for a breach of that contract." Underdog Trucking, LLC, Reggie Anders v. Verizon Servs. Corp., 09 Civ. 8918 (DLC), 2010 U.S. Dist. LEXIS 72642, 2010 WL 2900048, at *3 (S.D.N.Y. July 20, 2010). It is undisputed that the Individual Defendants did not enter into a contract with Fisch in their individual capacities. Accordingly, the breach of contract claims against them must be dismissed.

Fisch  [*19] argues that the Individual Defendants may be held individually liable for aiding and abetting breach of contract, inducing a breach of contract, tortious interference of contract, fraud, and various other torts. Although Fisch did not plead any of these causes of action, he argues that the Court should liberally construe the Complaint to allow these claims to go forward. These arguments are unavailing. The Complaint wholly fails to plead the elements of any of the above causes of action with respect to any of the Individual Defendants. It fails to plead fraud with sufficient particularity to survive the pleading requirements of Rule 9(b), Fed. R. Civ. P., or the facts necessary to support individual liability under a theory of piercing the corporate veil. See De Jesus v. Sears, Roebuck & Co., Inc., 87 F.3d 65, 69-70 (2d Cir. 1995) (addressing the pleading requirements for piercing the corporate veil under New York law). And there is no cause of action for aiding and abetting breach of contract under New York law. See Purvi Enterprises, LLC v. City of New York, 62 A.D.3d 508, 509, 879 N.Y.S.2d 410 (N.Y. App. Div. 2009).

CONCLUSION
 

The defendants' May 15, 2012 motion to dismiss is granted as to Fisch's  [*20] claims against the Individual Defendants, and denied as to Fisch's claim against the School under the whistleblower provisions of the FCA. This ruling disposes of all claims against the Individual Defendants. The Clerk of Court shall remove defendants Winnitt, Grossmann, Davis, and Rampoltd from the case.

SO ORDERED:

Dated: New York, New York
September 13, 2012
/s/ Denise Cote

DENISE COTE
United States District Judge