Allegations of workers drug use, misuse of funds among contentions

Thursday, August 26, 2004

Amidst allegations of drug use, sexual harassment and misappropriation of company funds, two co-owners of Firehouse Pizza on U.S. 31-W By-Pass are embroiled in a lawsuit in Warren Circuit Court that could result in the dissolution of the company.

Attorneys for James Anthony Scott, vice president and co-owner of Firehouse Pizza, filed a complaint Aug. 4 alleging misuse of funds by James Eric Sublett, a co-owner who is listed as the companys president, according to the Kentucky Secretary of States Office.

The lawsuit asks the court to appoint a receiver to dissolve Firehouse Pizza due to mismanagement of funds.

We are saying a receiver is not needed because (James Eric and Tasha Sublett) are more than capable of operating the business. Thats our position right now, said David Broderick, attorney for the Subletts. Should the assets be liquidated? We think not.

Numerous calls to Scotts attorney, Currie Milliken, were not returned.

Since mid-April, bank records show Scott, former part-owner of Scott Waste Management, pulled from his own bank account and personal line of credit and put into the Firehouse Pizza bank account a total of $219,500 money the lawsuit claims is largely unaccounted for.

Scott no longer has access to Firehouse Pizza funds. Sublett testified that he funneled all the money into other accounts for which he is the sole signatory after learning that, allegedly without Subletts knowledge or consent, Scott withdrew $2,000 from the Firehouse Pizza bank account in early August.

Bank records, which have been entered into evidence, reflect that Scott did withdraw the money, which Sublett testified was intended to be used for the rent payment, payroll and other business expenses.

In an Aug. 20 hearing in the case, former Firehouse manager Travis West testified that there was rampant drug use among employees during business hours.

West testified everyone but Eric almost everyone that worked there used marijuana and cocaine on a regular basis. In recounting those he had seen use drugs at the restaurant, West included James Eric Subletts wife, Tasha, who helped manage the companys finances.

West was fired during the first week of August, after being accused of stealing a $20 bill from a delivery mans cash bag. West denied the allegation in court and said he was never allowed to view the security video footage that supposedly incriminated him and led to his termination.

In subsequent testimony, James Eric Sublett denied any knowledge of drug use at the company.

Sublett also denied misuse of funds.

Im sure with extensive review of the records, we could trace every dollar, he said, adding that business costs such as payroll and advertising consumed much of the funds.

Subletts personal Cadillac Eldorado, which is sometimes used to make pizza deliveries for the business, recently received an approximate $2,500 update with a stereo system, television, DVD player and a vinyl Firehouse Pizza sign along the side all with Firehouse Pizza funds, according to Subletts testimony.

Sublett testified that Scott paid for the car with a Firehouse Pizza business check, using money that stemmed from Scotts personal line of credit.

That was a salary bonus, Sublett testified in the Aug. 20 hearing.

In two unrelated lawsuits, Scott is a defendant in sexual harassment allegations by one former and one current employee of Firehouse Pizza.

Amelia Spillman, whose last day with the company was March 17, claims the acts of sexual harassment were egregious and is seeking at least $1,340 for past lost income and benefits, as well as compensation for humiliation, stress, attorneys fees and damages caused by the assault on her person.

A complaint filed by Jessica Jones, who began working at the company in September, claims that Scott had physical contact with her while in the conduct of acts of sexual harassment and that such contact constitutes illegal assault. Jones is also seeking attorneys fees and punitive damages.

Answers from Scotts attorney, Matt Baker, in those cases say Jones and Spillman suffered no damages as a result of any alleged conduct by Scott. Firehouse Pizza is also named in the suit for failure to remedy the situation.

Jones and Spillmans cases are set to appear in Warren Circuit Court on Sept. 7. Scotts lawsuit against Firehouse Pizza is scheduled for a court hearing Tuesday.

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