Informer in Pennsylvania fraud case sues Quincy Township

A former employee is suing Quincy Township, claiming officials retaliated against him for informing law enforcement about alleged fraud.

Corey Kaiser, Waynesboro, says the township violated Pennsylvania's Whistleblower Law by discriminating against him in the workplace and, ultimately, firing him, according to the complaint filed in the Franklin County Court of Common Pleas. He is seeking a jury trial.

Kaiser was among those who were witnesses in the investigation of Kerry Bumbaugh, the complaint states. A Quincy Township supervisor since 1990, Bumbaugh was indicted last year on a long list of charges including theft, insurance fraud, forgery, and tampering with public records for allegedly defrauding the township and taxpayers of about $150,000 by falsifying records to obtain grant money and using township resources for personal projects.

Former township employee Travis Schooley was charged a couple months later for allegedly being involved in Bumbaugh's scheme.

Bumbaugh, 57, was found dead at the Quincy Township municipal office in December.

The complaint states Kaiser, an employee since 2007, learned of "certain conduct ... that wasted the resources of the Township," and that once agencies at the local, state and federal levels began investigations, he "cooperated with law enforcement agencies by making good faith reports" about what he knew.

Township officials began a "campaign of retaliation and harassment" after learning about Kaiser's discussions with investigators, according to the complaint.

Kaiser claims the township "took away or materially modified" his health benefits, underpaid him, overlooked him for promotions, falsely evaluated his work performance, removed privileges he had previously been afforded and created a "harsh, unbearable and stressful work environment." In addition, Kaiser says the township created a new position to supervise him and hired a person less qualified than him for the job.

"Quincy hired personnel into the position it created to construct a pretext so to support Kaiser's retaliatory discharge from employment by Quincy," the complaint states.

The "repeated" harassment also extended outside of work. According to the complaint, township officials spread misinformation around the community that caused third parties to harass Kaiser.

"Ultimately, Quincy terminated Kaiser from his job, without real cause, to retaliate for his good faith efforts to law enforcement," the complaint states.

According to Pennsylvania's Whistleblower Law, employers cannot discharge, threaten, discriminate or retaliate against any employee who reports or is set to report wrongdoing or waste by a public body; this extends to any employee who is asked to provide information to law enforcement.

Kaiser says the township's retaliation campaign and his subsequent firing caused a significant loss in pay and benefits, as well as emotional distress and damage to his reputation professionally and personally.

He is seeking "in excess" of $50,000 and other remedies provided by law, including reinstatement, back pay and benefits, compensatory damages, future loss damages, punitive and other damages, attorney's fees and expenses, and the cost of the bringing the lawsuit.

In response to a request for comment, Quincy Township solicitor Jason Piatt gave this statement:

"It is the policy of Quincy Township not to comment on pending litigation, however, we look forward to putting forth a strong defense in the pending matter."

The township has until Sept. 4 to respond to the lawsuit.

Kaiser is being represented by Stephen D. Kulla of Kulla, Barkdoll and Stewart, P.C., of Waynesboro.

Amber South can be reached at [email protected].