Aryai v. Forfeiture Support Associates, LLC

25 F. Supp. 3d 376, 2012 U.S. Dist. LEXIS 125227, 2012 WL 10911406
CourtDistrict Court, S.D. New York
DecidedAugust 27, 2012
DocketNo. 10 Civ. 8952(LAP)
StatusPublished
Cited by20 cases

This text of 25 F. Supp. 3d 376 (Aryai v. Forfeiture Support Associates, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aryai v. Forfeiture Support Associates, LLC, 25 F. Supp. 3d 376, 2012 U.S. Dist. LEXIS 125227, 2012 WL 10911406 (S.D.N.Y. 2012).

Opinion

MEMORANDUM AND ORDER

LORETTA A. PRESEA, Chief Judge.

This motion by Defendants United States Marshals Service (“USMS”) and Eben Morales (“Morales”) (collectively, the “Moving Defendants”) to ■ dismiss the claims of Plaintiff Brian Aryai (“Plaintiff’) presents, inter alia, two questions of first impression in this district: (1) whether the amended whistleblower provision of the False Claims Act (“FCA”) provides a cause of action against individual defendants; and (2) whether to recognize an action pursuant to Bivens v. Six Unknown Federal Narcotics Agents, 403 U.S. 388, 91 S.Ct. 1999, 29 L.Ed.2d 619 (1971), on behalf of an employee of a government contractor who experiences retaliation for engaging in speech protected by the First Amendment. For the reasons set forth below, the Court answers both questions in the negative and grants the Moving Defendants’ motion to dismiss [Dkt. No. 15].1

I. BACKGROUND

The Court takes as true the following factual allegations in the amended complaint and draws all reasonable inferences in favor of Plaintiff. See Goldstein v. Pataki, 516 F.3d 50, 56 (2d Cir.2008).

Plaintiff was employed as a Senior Forfeiture Financial. Specialist' by Forfeiture Support Associates, LLC (“FSA”), a company that “provides staffing and support solutions to government agencies.” (Am. Compl. ¶¶ 4-5.) One of those agencies is USMS, an agency responsible for, as relevant here, managing and disposing forfeited properties the Government has seized as proceeds of criminal activities. (Id. ¶ 6.) USMS performs that function pursuant to the Asset Forfeiture Program (“AFP”) of the Department of Justice. (Id.) At all relevant times, Morales served as Acting Assistant Director of the AFP. (Id. ¶ 7.) One division within the AFP is the Complex Assets Group (“CAG”), “which is responsible for the disposition of seized and forfeited financial instruments, businesses; majority and minority business interests and substantial real estate.” (Id. ,1111.)

A core aspect of FSA’s business is providing support services to the AFP pursuant to an Asset Forfeiture Support Contract (“AFSC”). (Id. ¶¶ 4-5.) “Pursuant to the [AFSC], the Government purportedly has the contractual right to require FSA to remove any of its employees from performance under the contract.” (Id. ¶ 56.) “However, in instances where the removal of an employee is for substandard performance or behavior negatively impacting [380]*380delivery of services, the [AFSC] provides FSA an opportunity to resolve the situation so as to allow the employee to remain on the contract.” {Id. ¶ 57.)

Plaintiff began working with the AFP in New York City on October 13, 2009. {Id. ¶¶ 8-9.) Plaintiff claims that, in early 2010, he discovered that CAG Program Manager Len Briskman (“Briskman”) “would unilaterally place a substantially low monetary value on a particular complex asset and then proceed to negotiate with and select buyers for the asset without providing any public notice.” {Id. ¶¶ 12-14.) According to Plaintiff, Brisk-man told him that “he often fpund buyers through his ‘business contacts’ ” and that “there was no public notice mechanism in place at the CAG for soliciting buyers for minority interests in privately held companies.” {Id. ¶¶ 15-16.) Believing this protocol “ran the significant risk of defrauding the United States government,” on February 19, 2010, Plaintiff met with Pam Bass (“Bass”), the program manager of Internal Controls at USMS, and Yolanda Lopez (“Lopez”), his supervisor at FSA, to discuss his concerns. {Id. ¶¶ 17-18.) Either at this meeting or sometime thereafter, Plaintiff suggested Morales should be informed about what he had discovered regarding Briskman. {Id. ¶ 21.)

In early March 2010, Plaintiff was working on the disposition of a “minority held interest in a private equity position known as the ‘Delta Fund.’ ” {Id. ¶ 22.) During the course of his work, Plaintiff discovered that Briskman had set a sale price for the asset well below fair market value and had not sought multiple buyers in the open market. {Id.) Plaintiff contacted Lopez and Barbara Ward (“Ward”), an Assistant United States Attorney for the Southern District of New York, regarding his concerns about Briskman and the Delta Fund pricing. {Id. ¶¶ 23, 29.) On March 5, 2010, Lopez sent Plaintiff an e-mail with the following language: “Be careful. Len is the Senior [United States Marshal] for Business and Complex assets. We are contractors and must cover for him, present a united front. US Attorneys should not get the impression that we are in differing levels.” {Id. ¶ 24.) Subsequently, on March 24, 2010, Plaintiff was transferred to the CAG to work directly under Briskman. {Id. ¶ 25.) Plaintiff does not specify who was responsible for this transfer.

Shortly thereafter, Plaintiff attempted to connect with Briskman on the professional networking website, Linkedln. {Id. ¶ 26.) Plaintiff claims Briskman listed himself on the website as CEO of Asset Valuation Advisors, LLC, which “held itself out as a business with experience in the disposition of distressed assets,” including assets related to forfeiture proceedings over which USMS presided. {Id. ¶¶ 26-27.) Plaintiff reported these findings to Ward, and “it was agreed that Plaintiffs findings would be confidentially referred to the Office of the Inspector General” (“OIG”). {Id. ¶¶ 29, 31.) Despite the purported agreement concerning confidentiality, Plaintiff claims that in response to Morales’s contacting Ward regarding the OIG referral, Ward told Morales Plaintiff had brought the matter to light. {Id. ¶¶ 32-33.)

On April 8, 2010, Plaintiff received several e-mails from Bass via FSA Regional Director William Wolf (“Wolf’) demanding that he answer by the close of business several questions posed by Morales about Plaintiffs research into and subsequent reporting of Briskman’s activities. {Id. ¶¶ 37-39.) Plaintiff did so and claims that his response was forwarded to Morales. {Id. ¶¶ 40-41.) Shortly thereafter, Plaintiff received a call from Wolf to the effect that Morales had canceled Plaintiffs scheduled trip to Miami and ordered Plain[381]*381tiff and Wolf to appear at Morales’s office in Washington, D.C., on April 12, 2010. (Id. ¶ 41.) When Plaintiff and Wolf met with Morales, “Morales expressed extreme anger and agitation with Plaintiff for having disclosed Briskman’s conduct” and “angrily told Plaintiff that Briskman was part of the ‘family’ and that Plaintiff should have never looked- into his activities.” (Id. ¶¶ 42-43.) Morales also purportedly told Plaintiff, “[Ijnstead of letting the [United States Attorney’s Office] find out about this, you should have come to me and I would have quietly forced [Brisk-man] into retirement....” (Id. ¶44.) Plaintiff claims Morales then threatened him with the following: “[Y]ou are talking yourself out of a job; I am not sure if there is a place for you here after this; I can get rid of you any time.” (Id. ¶ 45.)

Plaintiff alleges that, after this meeting, Morales “subjected [him] to micromanagement and a pattern of harassment and abuse.” (Id.

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25 F. Supp. 3d 376, 2012 U.S. Dist. LEXIS 125227, 2012 WL 10911406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aryai-v-forfeiture-support-associates-llc-nysd-2012.