A former executive at one of the largest Wendy’s franchisees has filed a whistleblower lawsuit accusing the company’s chief executive of misusing federal pandemic relief money. The claims are allegations in a complaint and have not been proven in court.
Sandi, who served as vice president of legal affairs and human resources at Starboard Group, says she was fired on June 1 after raising concerns about the company’s practices. She filed her complaint on June 30 in Broward County, Florida, under the state’s whistleblower statute, according to CNBC.
Starboard operates 101 Wendy’s locations across seven states and employs about 3,200 people. The suit claims the company received about $9 million in Paycheck Protection Program loans meant to cover operations. Sandi alleges that CEO Andrew directed her to list some of his personal employees in Montana as corporate employees, and that about $1 million in loan money ended up paying for a home there. The complaint says the effect was to defraud the United States and the Small Business Administration.
The suit also claims Andrew told her to inform creditors, vendors, suppliers and landlords that Starboard could not meet its financial commitments because it had not received PPP assistance. In addition, the complaint alleges that a supervisor sexually harassed her during her employment and that Andrew ignored her when she came forward. Sandi is seeking lost wages and compensatory damages.
The Paycheck Protection Program was created to help small businesses with fewer than 500 employees, though large restaurant and hotel chains received exemptions after the pandemic hit. The Government Accountability Office has raised concerns about fraud in the program. A response from Starboard Group or its CEO was not included in early reports on the lawsuit.
Made to order and shipped to your door.
