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Press Release
Whistleblower sues MGM for reinstatement
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For more Information Contact: PRESS RELEASE
Attorney Mick Harrison, 812-361-6220, or December 2, 2013
Attorney Robert Gerard, 619-232-2828, 702-251-0093
Whistleblower Seeks Penalties Against Hotel Giant MGM Under Sarbanes – Oxley Act of 2002 for Violation of Order of the United States Department of Labor Ordering Her Immediate Reinstatement
Today Whistleblower Nelly Oberti, a former Residential Services Representative (“RSR”) for The Signature Condominiums, LLC, a subsidiary of MGM Resorts International (“MGM”), filed a motion seeking sanctions, including a default judgment, against MGM in her retaliatory termination case against the hotel giant for its refusal to obey an August 30, 2013 Order issued by the Department of Labor (DOL) to immediately reinstate Ms. Oberti to her former employment status. MGM has now for three months refused to comply with this Order resulting in severe economic hardship to whistleblower Oberti.
The DOL found, after a 5 year investigation, that there was reasonable cause to issue an Order finding MGM in violation of the Sarbanes-Oxley Act of 2002 (“SOX”) for the retaliatory firing of Ms. Oberti, MGM’s “RSR”. MGM’s retaliation was in response to whistleblower Oberti’s action in reporting concerns to her supervisors that representatives of MGM may be engaging in illegal practices in the sale and marketing of their condo/hotel units known as the Signature at MGM Grand located adjacent to the MGM Grand Hotel in Las Vegas, Nevada.
According to the DOL’s findings, Complainant Oberti engaged in protected whistleblowing activity under the SOX when she raised concerns that MGM might be engaging in an illegal practice known as “forecasting” by providing information, through employees who were not properly licensed as securities brokers, to prospective condo/hotel buyers on projected occupancy rates and rental income from the future rental of the condo/hotel units being marketed. The DOL stated that “[g]iven the training on forecasting provided by [MGM], as well as the condominium owners’ lawsuits against [MGM] filed in August 2007 and February 2008 in court, Complainant was objectively reasonable in her belief that her co-workers’ practices were illegal and violated SEC regulations.”
The DOL ruled that the evidence obtained during the investigation established that Complainant Oberti’s protected activity was a contributing factor in her termination and ordered MGM to reinstate Complainant and pay Complainant compensatory damages.
Ms. Oberti’s reaction to MGM’s refusal to obey the DOL Order for her immediate reinstatement was one of shock and disbelief. “As a conscientious employee, all I did was alert my managers that they may be violating the law and to have their lawyers advise us. Most employers would appreciate this opportunity to review the situation and to implement corrective action if needed. Instead, they fired me. I lost my only source of income and critically needed health benefits. As a result of MGM’s refusal to comply with DOL’s reinstatement Order, I am facing the exact hardship situation that Congress intended to protect whistleblowers from when Congress enacted the Sarbanes-Oxley Act.”
Attorney Robert Gerard, co-counsel for Ms. Oberti, added “I am very disturbed by MGM’s lack of compassion for Ms. Oberti, a conscientious employee, who they wrongfully fired and caused extreme economic hardship, but I am not surprised at their disregard for the law given my 7 years of securities litigation experience with them. They are the company in a company town. It took almost 5 years for Ms. Oberti to get this Order from a Federal Agency that normally takes just 120 days. I applaud the DOL investigators and attorneys for their integrity and tenacity to issue this ruling despite MGM’s strong objections and litigation tactics. Justice will prevail and all the facts to support Ms. Oberti’s claims will see the light of day”.
Attorney Mick Harrison, a nationally known whistleblower attorney based in Bloomington, Indiana who serves as Ms. Oberti’s lead counsel, stated “I am honored to represent Ms. Oberti who has been very courageous in exposing potential misconduct and violations of securities law by a huge international corporation. We have brought suit against MGM on Ms. Oberti’s behalf to ensure that she is immediately reinstated, as well as awarded substantial money damages to ‘make her whole,’ as intended by Congress. Ms, Oberti’s case is expected to set important legal precedent regarding the whistleblower protection provisions of the Sarbanes Oxley Act, a law designed to fight financial and corporate fraud.”
The DOL’s press release announcing its reinstatement order can be found here:
https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=NEWS_RELEASES&p;_id=24744
-END-
Attorney Mick Harrison, 812-361-6220, or December 2, 2013
Attorney Robert Gerard, 619-232-2828, 702-251-0093
Whistleblower Seeks Penalties Against Hotel Giant MGM Under Sarbanes – Oxley Act of 2002 for Violation of Order of the United States Department of Labor Ordering Her Immediate Reinstatement
Today Whistleblower Nelly Oberti, a former Residential Services Representative (“RSR”) for The Signature Condominiums, LLC, a subsidiary of MGM Resorts International (“MGM”), filed a motion seeking sanctions, including a default judgment, against MGM in her retaliatory termination case against the hotel giant for its refusal to obey an August 30, 2013 Order issued by the Department of Labor (DOL) to immediately reinstate Ms. Oberti to her former employment status. MGM has now for three months refused to comply with this Order resulting in severe economic hardship to whistleblower Oberti.
The DOL found, after a 5 year investigation, that there was reasonable cause to issue an Order finding MGM in violation of the Sarbanes-Oxley Act of 2002 (“SOX”) for the retaliatory firing of Ms. Oberti, MGM’s “RSR”. MGM’s retaliation was in response to whistleblower Oberti’s action in reporting concerns to her supervisors that representatives of MGM may be engaging in illegal practices in the sale and marketing of their condo/hotel units known as the Signature at MGM Grand located adjacent to the MGM Grand Hotel in Las Vegas, Nevada.
According to the DOL’s findings, Complainant Oberti engaged in protected whistleblowing activity under the SOX when she raised concerns that MGM might be engaging in an illegal practice known as “forecasting” by providing information, through employees who were not properly licensed as securities brokers, to prospective condo/hotel buyers on projected occupancy rates and rental income from the future rental of the condo/hotel units being marketed. The DOL stated that “[g]iven the training on forecasting provided by [MGM], as well as the condominium owners’ lawsuits against [MGM] filed in August 2007 and February 2008 in court, Complainant was objectively reasonable in her belief that her co-workers’ practices were illegal and violated SEC regulations.”
The DOL ruled that the evidence obtained during the investigation established that Complainant Oberti’s protected activity was a contributing factor in her termination and ordered MGM to reinstate Complainant and pay Complainant compensatory damages.
Ms. Oberti’s reaction to MGM’s refusal to obey the DOL Order for her immediate reinstatement was one of shock and disbelief. “As a conscientious employee, all I did was alert my managers that they may be violating the law and to have their lawyers advise us. Most employers would appreciate this opportunity to review the situation and to implement corrective action if needed. Instead, they fired me. I lost my only source of income and critically needed health benefits. As a result of MGM’s refusal to comply with DOL’s reinstatement Order, I am facing the exact hardship situation that Congress intended to protect whistleblowers from when Congress enacted the Sarbanes-Oxley Act.”
Attorney Robert Gerard, co-counsel for Ms. Oberti, added “I am very disturbed by MGM’s lack of compassion for Ms. Oberti, a conscientious employee, who they wrongfully fired and caused extreme economic hardship, but I am not surprised at their disregard for the law given my 7 years of securities litigation experience with them. They are the company in a company town. It took almost 5 years for Ms. Oberti to get this Order from a Federal Agency that normally takes just 120 days. I applaud the DOL investigators and attorneys for their integrity and tenacity to issue this ruling despite MGM’s strong objections and litigation tactics. Justice will prevail and all the facts to support Ms. Oberti’s claims will see the light of day”.
Attorney Mick Harrison, a nationally known whistleblower attorney based in Bloomington, Indiana who serves as Ms. Oberti’s lead counsel, stated “I am honored to represent Ms. Oberti who has been very courageous in exposing potential misconduct and violations of securities law by a huge international corporation. We have brought suit against MGM on Ms. Oberti’s behalf to ensure that she is immediately reinstated, as well as awarded substantial money damages to ‘make her whole,’ as intended by Congress. Ms, Oberti’s case is expected to set important legal precedent regarding the whistleblower protection provisions of the Sarbanes Oxley Act, a law designed to fight financial and corporate fraud.”
The DOL’s press release announcing its reinstatement order can be found here:
https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=NEWS_RELEASES&p;_id=24744
-END-