A suspended employee of the Administrative Office of the Courts has filed a whistleblower lawsuit alleging improprieties within the government agency that oversees the operation of the state’s judicial system.
Scott Brown was placed on administrative leave earlier this year after reporting concerns to his supervisor, according to the lawsuit filed Wednesday in Franklin County circuit court. Brown is facing possible termination as the AOC’s executive officer of administrative services.
Brown said in the lawsuit that, between February and May of 2014, he alerted his direct supervisor that he believed an AOC employee who later resigned may have been illegally awarding HVAC contracts without seeking competitive bids, that he may have shown preferential treatment to one HVAC company, and that he may have misused AOC vehicles.
In the lawsuit, Brown raised concerns about a lack of formal lease agreements in the majority of offices occupied by the Court of Justice. He also alleged a long history of non-competitive bidding, and a general lack of policies and procedures.
Brown said in the lawsuit he reported double payments for facility expenses and janitorial contract, and that he also reported questionable spending in an AOC program that covers the cost of attorneys in contentious child custody cases. He said one northern Kentucky county alone received $3.6 million.
In April of this year, Brown said he became the target of an investigation by the attorney general’s office based on an anonymous complaint to Attorney General Andy Beshear and a newspaper and TV station regarding the sale of surplus vehicles at the AOC, including some he purchased.
Brown alleged in the lawsuit that the investigation was in retaliation for the alleged wrongdoing he uncovered, and that he was advised by the AOC’s human resources office to retire or resign by May 15, or face removal from his job.
The AOC said in a statement Wednesday afternoon that it rejects Brown’s whistleblower claims and the allegations in the complaint, saying Brown was put on suspension based on the attorney general’s investigation into Brown’s handling of surplus property sales.
“Mr. Brown’s impending termination is solely the result of a loss of trust and confidence in his management abilities,” AOC Director Laurie K. Dudgeon said. “To characterize this as anything else is completely unfounded.”
Dudgeon said, while the AOC cannot comment on the lawsuit in detail, the allegation that Brown is a whistleblower is without merit and the AOC will aggressively defend itself against the accusations.
“As head of the auditing services and facilities divisions, it was Mr. Brown’s duty and responsibility to report these things to management, which he did,” she said. “Corrective measures were taken immediately to address the issues that were raised.”
Dudgeon said the AOC has taken recent steps to enhance its financial oversight and to adopt new procedures and processes, including for the disposal of surplus property. She said that Chief Justice John D. Minton Jr. issued a new Supreme Court order in April providing guidelines on how the judicial branch is to appropriately dispose of surplus vehicles and property.
The AOC has also asked Auditor of Public Accounts Mike Harmon to examine its financial operations and make recommendations on how to potentially improve internal management controls and to increase transparency and implement best practices in financial management. The audit started June 1.