Sistek v. DVA

CourtCourt of Appeals for the Federal Circuit
DecidedApril 8, 2020
Docket19-1168
StatusPublished

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Bluebook
Sistek v. DVA, (Fed. Cir. 2020).

Opinion

Case: 19-1168 Document: 47 Page: 1 Filed: 04/08/2020

United States Court of Appeals for the Federal Circuit ______________________

LEONARD A. SISTEK, JR., Petitioner

v.

DEPARTMENT OF VETERANS AFFAIRS, Respondent ______________________

2019-1168 ______________________

Petition for review of the Merit Systems Protection Board in No. DE-1221-18-0100-W-1. ______________________

Decided: April 8, 2020 ______________________

ANDREW BAKAJ, Mark S. Zaid, P.C., Washington, DC, argued for petitioner.

STEVEN MICHAEL MAGER, Commercial Litigation Branch, Civil Division, United States Department of Jus- tice, Washington, DC, argued for respondent. Also repre- sented by JOSEPH H. HUNT, ELIZABETH MARIE HOSFORD, ROBERT EDWARD KIRSCHMAN, JR. ______________________

Before DYK, TARANTO, and STOLL, Circuit Judges. STOLL, Circuit Judge. Case: 19-1168 Document: 47 Page: 2 Filed: 04/08/2020

Petitioner Leonard Sistek, Jr. appeals the final deci- sion of the Merit Systems Protection Board denying correc- tive action in his claim filed under the Whistleblower Protection Act. Mr. Sistek, now retired, was a director at the Department of Veterans Affairs who made multiple protected disclosures over the course of several years. He alleged that certain individuals at the agency launched an investigation against him in retaliation for his whistle- blowing activities, ultimately resulting in a letter of repri- mand filed against him. The Board denied corrective action for the allegedly retaliatory investigation based on its view that a retaliatory investigation, in and of itself, does not qualify as a personnel action within the meaning of the WPA. For the reasons explained below, we affirm the Board’s decision. BACKGROUND I In April 2011, Mr. Sistek was appointed to a director role at the VA’s Chief Business Office Purchased Care in Denver, Colorado. While serving in that role, Mr. Sistek made several protected disclosures to the VA’s Office of the Inspector General (OIG) questioning various financial practices at the VA. For example, Mr. Sistek raised con- cerns in August 2012 regarding the “parking” of certain ap- propriated funds. Mr. Sistek also contacted the OIG in October 2013 regarding certain perceived contractual anomalies. During a conference call with agency staff on Janu- ary 17, 2014, Mr. Sistek expressed his concerns regarding the VA’s use of certain funds that were purportedly appro- priated for a different purpose. Mr. Sistek’s second-line su- pervisor, Cynthia Kindred, participated in that call. Shortly thereafter, Ms. Kindred appointed an Administra- tive Investigation Board (AIB) to investigate alleged mis- conduct in the organization, including certain allegations Case: 19-1168 Document: 47 Page: 3 Filed: 04/08/2020

SISTEK v. DVA 3

relating to inappropriate relationships with subordinate staff. The AIB interviewed Mr. Sistek several weeks later on February 4, 2014. According to Mr. Sistek, he received no- tification that he would be interviewed by the AIB as a wit- ness, and he first realized that he was a subject of the investigation during questioning by the AIB members. Shortly after the interview, Mr. Sistek sent an email to the OIG expressing concern that he was being subjected to an investigation in retaliation for his prior whistleblowing ac- tivities. On the following day, Ms. Kindred formally added Mr. Sistek as a subject of the investigation. On April 21, 2014, the AIB issued a report detailing its findings regarding a number of allegations, among them a “failure to act and/or investigate allegations of a hostile work environment” by the management team, which in- cluded Mr. Sistek. J.A. 64, 73–76. The investigation cul- minated in a July 2014 report concluding that Mr. Sistek had failed to properly report information and allegations regarding an inappropriate sexual relationship between a director and that director’s subordinate staff member. The July 2014 report recommended that Mr. Sistek receive “an admonishment or reprimand” on that basis. J.A. 85. In August 2014, Mr. Sistek’s immediate supervisor, Lori Amos, issued a letter of reprimand consistent with that rec- ommendation. Mr. Sistek filed a formal grievance in response to the letter of reprimand. The assigned grievance examiner is- sued a report in December 2014 substantiating the conduct supporting the reprimand and recommending that Mr. Sis- tek’s grievance and requested relief be denied. In Janu- ary 2015, Ms. Amos’s supervisor Stan Johnson rescinded the letter of reprimand and expunged it from Mr. Sistek’s record. Mr. Johnson did not provide a reason for the rescis- sion and expungement. Case: 19-1168 Document: 47 Page: 4 Filed: 04/08/2020

In March 2015, the OIG confirmed that the concerns raised by Mr. Sistek on the conference call in January 2014 were justified: the VA had violated appropriations law by improperly reallocating certain funds. In June 2015, the OIG confirmed that the “parking” of appropriated funds, as flagged by Mr. Sistek in August 2012, was unauthorized. Mr. Sistek retired from the VA in January 2018. II Following the issuance of the April 2014 report from the AIB investigation, Mr. Sistek filed a complaint with the U.S. Office of Special Counsel (OSC) alleging whistleblower reprisal based on several personnel actions, including the letter of reprimand. After the OSC issued a closure letter, Mr. Sistek filed an individual right of action appeal with the Board, alleging that certain VA officials had retaliated against him for certain disclosures and activities protected under the Whistleblower Protection Act. Before the Administrative Judge, Mr. Sistek originally identified four reviewable personnel actions, including the letter of reprimand. The Administrative Judge later added retaliatory investigations to the list of alleged personnel ac- tions. The Administrative Judge ordered the parties to submit supplemental briefing on whether the alleged retal- iatory investigations could qualify for corrective action un- der the WPA. In his supplemental brief, Mr. Sistek argued that the investigation at issue merited corrective action be- cause it was launched against him in retaliation for his whistleblowing, resulting in the letter of reprimand and the creation of a hostile work environment. After evaluating Mr. Sistek’s various whistleblower claims, the Administrative Judge declined to order any cor- rective action in favor of Mr. Sistek. See generally Sistek v. Dep’t of Veterans Affairs, No. DE-1221-18-0100-W-1, 2018 MSPB LEXIS 3010 (M.S.P.B. Aug. 8, 2018) (Deci- sion). Relevant here, the Administrative Judge deter- mined that a retaliatory investigation, in and of itself, does Case: 19-1168 Document: 47 Page: 5 Filed: 04/08/2020

SISTEK v. DVA 5

not qualify as a personnel action eligible for corrective ac- tion under the WPA. And when evaluating the remainder of Mr. Sistek’s whistleblower claims, the Administrative Judge did not consider the allegedly retaliatory investiga- tion any further. For example, the Administrative Judge considered only Ms. Amos’s knowledge—and not Ms. Kin- dred’s knowledge even though she initiated the investiga- tion—in evaluating Mr. Sistek’s claim based on the letter of reprimand. The Administrative Judge rejected that claim after finding that Ms. Amos, the official who issued the reprimand, had no actual or constructive knowledge of Mr. Sistek’s protected disclosures to the OIG. The Administrative Judge’s initial decision became the final decision of the Board. Mr. Sistek now petitions for review. We have jurisdiction under 28 U.S.C. § 1295(a)(9). DISCUSSION On appeal, Mr. Sistek challenges the Board’s final de- cision denying corrective action for the allegedly retaliatory investigation. 1 The Board reasoned that a retaliatory

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