PA Housing Authority dismissed from wrongful termination suit

An order of dismissal has been entered in a suit filed by a former employee of the Port Arthur Housing Authority who claimed the director and board members fired him after reporting alleged misappropriations.

According to the complaint filed Oct. 30, 2012, in Jefferson County District Court, Joseph Ray Guillory alleges he was working for the PAHA when he became aware that the executive director, Seledonio Quesada, and other members of the authority were misappropriating thousands of dollars that belonged to the agency.

Court records show that Guillory and the Port Arthur Housing Authority filed a joint motion for final order of dismissal on July 22, stating all claims have been resolved.

That same day, Judge Bob Wortham, 58th District Court, granted the motion.

After discovering the alleged misappropriation, Guillory reported his findings to the Office of the Inspector General, the suit states.

“The Authority charged in excess of $199,000 to its American Express charge card account, $23,205 to its gasoline charge card account, and $5,352 to its Lowe’s charge account during the audit period,” the suit states.

“Plaintiff informed OIG that the majority of charge card transactions did not fulfill a housing authority mission or business purpose. The Authority incurred $8,410 in ineligible and $47,916 in unsupported charges that it allocated to its HUD programs and at least $9,595 in travel costs incurred by the commissioners that it charged to its non-HUD programs. Its (credit card) statements reflected at least $66,000 in travel charges for its commissioners, management, employees and contractors.”

An audit also revealed that the Housing Authority had paid Quesada $51,821 in sick pay leave and had provided 14 laptops for six commissioners, the complaint alleged.

In his suit, Guillory claimed that during the next audit, Quesada warned him not to cooperate with the Office of the Inspector General. In fact, Quesada attempted to prevent the office from obtaining certain documents and to block it from interviewing certain Housing Authority staff.

Despite Quesada’s warnings, Guillory informed special agents that the Housing Authority consistently violated financial responsibilities, including proceeding with a project without the proper environmental clearance.

For the project, the Housing Authority had received $657,906 from the Recovery Act Grant, the suit states. It needed to spend the money by a certain deadline and proceeded with a project without first obtaining environmental clearances, the complaint says.

“Indeed after the defendant began construction illegally on the site, underground gas tanks were discovered on the property,” the suit states. “It was later confirmed that much of the soil was contaminated.”

Guillory claims he was terminated on April 17, 2012, after providing information that triggered an audit.

Guillory was seeking actual damages, including front and back pay, compensatory damages, mental anguish damages, exemplary damages, pre-judgment interest, attorney’s fees, costs and other relief the court deems just.

Cade Bernsen, David E. Bernsen and Christine L. Stetson of The Bernsen Law Firm in Beaumont represent him.

Case No. A193-500