SAN FRANCISCO--(BUSINESS WIRE)--Two whistleblower retaliation lawsuits have been recently filed by Peretz & Associates against The Greenspan Company/Adjusters International, parent company of Greenspan Adjusters International, Inc. and California’s largest public adjuster company. The most recent lawsuit against the company was filed in the Superior Court of California in San Francisco County by Masood Khan, a former Vice President and Assistant General Counsel.
The lawsuit alleges The Greenspan Company/Adjusters International employed a convicted felon, Mark Fratkin, who in 1991 was convicted of embezzlement and related felonies, to engage in insurance- and public adjusting-related transactions for the company, thereby violating many California and federal laws. The Greenspan Company/Adjusters International, it is alleged, allowed Mr. Fratkin to engage in the unauthorized practice of public adjusting, which requires a license to practice in California. Among other things, Mr. Fratkin is alleged to have acted as a de facto officer and director of The Greenspan Company/Adjusters International, in charge of operating its entire sales, claims, and operational departments. The lawsuit also claims that The Greenspan Company/Adjusters International allowed Mr. Fratkin to impersonate other Greenspan sales employees, including Masood Khan, on external communications in an attempt to cover up Mr. Fratkin’s unlawful activity and role at the company from insurance companies, other outside entities, and clients.
Mr. Khan is claiming he complained to senior management numerous times regarding Mr. Fratkin’s illegal activities, and that Mr. Fratkin’s ongoing illegal conduct put Mr. Khan and other employees at risk of liability or the loss of their own public adjusting licenses. Nevertheless, Greenspan’s management ignored or dismissed Mr. Khan’s complaints and instructed Mr. Khan to carry on with his work.
Mr. Khan also claims that he was subjected to a discriminatory, harassing and hostile work environment in which he was routinely subjected to numerous racist slurs, bigoted comments, harassing conduct and abusive conditions due to his race, national origin and skin color. Senior management routinely referred to Mr. Khan by racially based slurs and insults according to the suit. Mr. Khan is also claiming that he received work assignments on the basis of his race, national origin, and skin color. He claims he was specifically told by two directors and officers of Greenspan named in the lawsuit, Paul Migdal and Steve Severaid, that Mr. Khan would be assigned to service major flood losses in Thailand because Mr. Khan is “brown just like everyone there, you’ll blend in.” Mr. Khan alleges that Greenspan assigned him to other locales, such as Guam and Puerto Rico, for the same reasons.
Mr. Khan also claims that his superiors failed to pay him numerous sales commissions he rightfully earned. His work environment became so intolerable, Mr. Khan claims he felt he had no choice but to resign from his employment. A link to the lawsuit can be found by clicking HERE (CGC-19-581129).
The second lawsuit was filed by former employee Gary Johnson. Mr. Johnson was hired by The Greenspan Company/Adjusters International’s founder in 1982 as an Executive General Adjuster, and later became a Public Adjuster. Mr. Johnson became a full partner by 1990, and served as Greenspan Adjuster International, Inc.’s CEO and President from 2003 to 2005 before that entity merged with sister entity Adjusters International Pacific Northwest, Inc. Mr. Johnson claims he was wrongfully terminated in 2018, after 36 years of service, and has filed claims relating both to his termination and for claims relating to his status as a minority shareholder of Greenspan.
Mr. Johnson claims that certain directors, officers, and shareholders of Greenspan—Gordon Scott, Steve Severaid, Paul Migdal, James Warren, Clay Gibson, Drew Lucurell, and Chris Lucurell—acted in concert to create a pretext for Mr. Johnson’s termination and forced Mr. Johnson out of the company by illegitimate means, failed to compensate Mr. Johnson for wages and commissions owed, and conspired with one another to misappropriate Greenspan’s corporate funds. The misappropriated funds were used by these individuals to finance personal trips and vacations, to pay for extravagant parties in strip clubs, and even to compensate sex workers for illicit sexual acts. Like Mr. Khan, Mr. Johnson also alleges that Greenspan and its directors improperly permitted Mr. Fratkin to serve as a public adjuster for the company despite lacking the required licensing and being ineligible to obtain a license due to his prior felony convictions. A link to the lawsuit can be found by clicking HERE (CGC-20-583239).
For more information concerning these lawsuits, contact Yosef Peretz at (415) 732-3777 or via email at yperetz@peretzlaw.com.