Jorge Aviles v. Merit Systems Protection Board

799 F.3d 457, 2015 U.S. App. LEXIS 14905, 2015 WL 5010031
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 24, 2015
Docket14-60645
StatusPublished
Cited by20 cases

This text of 799 F.3d 457 (Jorge Aviles v. Merit Systems Protection Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jorge Aviles v. Merit Systems Protection Board, 799 F.3d 457, 2015 U.S. App. LEXIS 14905, 2015 WL 5010031 (5th Cir. 2015).

Opinion

EDWARD C. PRADO, Circuit Judge:

Former IRS agent Jorge Aviles asserts that he was fired in retaliation for protected whistleblowing. Aviles alleges that he uncovered that ExxonMobil Corporation (“Exxon”) had perpetrated a $500 million tax fraud and that IRS officials covered it up. Aviles claims he disclosed this information to his supervisors and that he was ultimately fired in retaliation for this protected disclosure in violation of the Whistleblower Protection Act. An administrative law judge (ALJ) dismissed Aviles’s appeal. The ALJ found that — aside from Aviles’s “vague and conclusory” allegations of a cover-up — Aviles failed to allege that the government was involved in Exxon’s alleged wrongdoing. Over a dissent, the Merit Systems Protection Board (“MSPB” or “the Board”) affirmed. Because we agree with the Board’s finding that Aviles failed to make a nonfrivolous allegation of government involvement in Exxon’s alleged wrongdoing, we conclude that Aviles’s disclosure was not protected and deny his petition.

I. BACKGROUND

This is the first direct appeal to the Fifth Circuit from a Merit Systems Protection Board adjudication in the wake of the 2012 amendments to the Whistleblower Protection Act. Aviles grounds his petition for review in the drafting history of the Whistleblower Protection Act; he argues that Congress has repeatedly expanded the definition of protected whistleblowing activities. Accordingly, before reviewing the underlying facts and procedural background, we provide a brief overview of the drafting history and the statutory scheme governing Aviles’s claim.

A. Legal Background and Statutory Framework

The Civil Service Reform Act of 1978 established statutory protections to encourage federal employees to disclose government illegality, waste, fraud, and abuse; and also established the Merit Systems Protection Board as an independent agency to adjudicate these claims. Pub.L. No. 95-454, §§ 101, 202, 92 Stat. 1111,1113-14, 1121-31. Congress later passed the Whistleblower Protection Act (WPA) of 1989, Pub.L. No. 101-12, 103 Stat. 16. The WPA proscribes retaliation against a federal employee who discloses what the employee reasonably believes evidences a violation of any law, rule, or regulation, gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety. See 5 U.S.C. § 2302(b)(8).

From its inception in 1982 until recently, the Federal Circuit exercised exclusive jurisdiction over petitions for review of MSPB adjudications that involved only federal-employee whistleblower claims. King v. Dep’t of the Army, 570 Fed.Appx. 863, 864 (11th Cir.2014) (per curiam). These claims were directly appealable to the Federal Circuit and reviewed for arbitrariness or capriciousness and for substantial evidence. Id. at 865; see also 5 U.S.C. § 7703(c).

Concerned that the Federal Circuit and the MSPB had interpreted the WPA’s definition of protected disclosures too narrowly, Congress amended the statute in 1994. See Act of Oct. 29, 1994, Pub.L. No. 103-424,108 Stat. 4361; S.Rep. No. 103-358, at 8-10 (1994) (criticizing the Federal Circuit’s “construction of the legislative history” and declaring that “the Board and the courts should not erect barriers to disclosures which will limit the necessary flow of information from employees who have knowledge of government wrongdoing”). *460 In 2012, Congress again significantly-amended the WPA through the Whistle-blower Protection Enhancement Act (WPEA) to address similar concerns. This time, to encourage diverse appellate review — which leads to circuit splits (facilitating Supreme Court review), S.Rep. No. 112-155, at 11 (2012) — Congress also expanded judicial review to all circuits, with this provision of the law scheduled to “sunset” five years later, 5 U.S.C. § 7703(b)(1)(B); see also All Circuit Review Extension Act, Pub.L. No. 113-170, 128 Stat. 1894 (extending the sunset of all-circuit review to five years instead of two years after enactment).

B. Factual and Procedural Background

The following factual background is essentially undisputed and is drawn from the administrative record of the MSPB adjudication. Aviles worked as an International Examiner at the IRS’s Large and MidSized Business Division in Houston, Texas. As part of his duties, Aviles worked onsite at Exxon’s facility auditing its international tax filings. In September 2010, Aviles received a letter from the Acting Territory Manager proposing that he be “removed from his position for: 1) absence without leave for a total of 552 hours; 2) failure to follow a managerial directive to report to work; and 3) providing misleading statements in matters of official interest.” Later that year, the proposal for Aviles’s removal was sustained, and Aviles’s employment with the IRS ended.

In 2013, Aviles filed an individual right of action (IRA) appeal with the MSPB, asserting that he was removed in retaliation for protected whistleblowing. Specifically, Aviles alleged that he filed a complaint with the Office of Special Counsel (OSC) 1 in which he explained that he had disclosed to his supervisor on February 2, 2010, “[fincóme tax fraud and blockage of computer committed by ExxonMobil Corporation and[] the involvement by IRS management team in helping to cover it up.” Aviles also alleged that on February 16, 2010, he disclosed “income tax fraud in excess of US$ 500 million for the tax years 2006 and 2007” on the part of Exxon to the Commissioner of the IRS and other IRS officials. Aviles’s removal process started months later in September 2010, and he was removed in November of that year.

1. MSPB Proceeding

The ALJ found that 5 U.S.C. § 2302(b)(8)’s protections “safeguard whistleblowers against retaliation for the disclosure of governmental wrongdoing,” and dismissed Aviles’s claim because he only alleged “tax fraud by a private entity.” Importantly, the ALJ relied in part on the Federal Circuit’s decision in Willis v. Department of Agriculture, 141 F.3d 1139 (Fed.Cir.1998) in making this ruling. The ALJ noted that “[allegations that particular government officials allowed or facilitated wrongful conduct by a private organization” may be protected. But the ALJ found that Aviles’s “vague and speculative assertion of possible unspecified ‘involvement’ by unidentified agency officials in alleged private misconduct by a taxpayer does not constitute a nonfrivolous allegation of whistleblowing activity.” Accordingly, the ALJ dismissed Aviles’s claim for *461 lack of jurisdiction, and the MSPB affirmed 2-1 over a dissent in a short, nonprecedential final order.

2.

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799 F.3d 457, 2015 U.S. App. LEXIS 14905, 2015 WL 5010031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jorge-aviles-v-merit-systems-protection-board-ca5-2015.