Washington Blade - July 19, 2002
Rhonda Smith

Sundiata N. Alay , who began working as HCC's director in September 2000, contends in the lawsuit that he was wrongfully terminated two months ago by the agency's 13-member board of directors. He is suing HCC as well as individual board members for "breach of contract, tortious interference with the contract, wrongful termination, negligent infliction of emotional distress, and intentional infliction of emotional distress."

Neither Alay nor his attorney, Mark R. Raddatz, would comment on the record about the legal dispute.

Jesse Gadson, a lawyer and a member of HCC's board, told the Blade this week: "People file frivolous lawsuits on a daily basis."

The financial dispute between Alay and the HCC board began earlier this year when Charles Nelson, the organization's board chair, requested an explanation from Alay about $16,665 in reimbursements the former executive director paid himself with HCC funds.

Alay , who was hired with a starting annual salary of $60,000, contends that he was granted the power to make financial transactions for HCC and that the reimbursement was for personal funds he used on behalf of the agency. Nelson declined to comment when reached by the Blade this week.

Robert Seigel, an HCC board member and the organization's treasurer, said that Alay was supposed to work with the agency's board of directors to conduct financial transactions for the organization but he failed to do so.

"Sundiata was discharged because of a lot of things. That lawsuit doesn't say all of that," Seigel said. "He didn't do everything he was supposed to do. He spent money like a sieve."

Seigel is described in the lawsuit, which Alay filed in June, as "an 'absentee' party to the HCC." Alay contends that this forced him to "exercise his delegated check-writing authority to pay both day-to-day and ongoing expenses of the HCC."

The lawsuit notes that the D.C. Department of Consumer & Regulatory Affairs revoked the HCC's corporate charter in Sept. 11, 2000. Court documents filed with it also state that the agency's total income from January to December 2001 was $1.09 million.

'Irregular' transactions cited

In a letter to Alay in March, Nelson said HCC board members had discovered "a series of highly irregular banking activities" made on the agency's Citibank account.

"As a result of our short review of the supporting documentation you provided the agency and two memorandums from our director of finance," Nelson said, "your signatory authorization on all HCC accounts [has] been removed, pending further investigation."

Nelson also notified Alay in the letter that he would be suspended "until a further investigation can be completed."

The court documents state that Alay sent the agency's finance director initial documentation about the reimbursement and expected to review the expense items at a March 25 meeting. On the day of the scheduled meeting, Raddatz said in the letter, he and Alay were told that the discussion would not take place because the board members were not accompanied by their lawyer.

"Such declaration was quickly followed by the presentation of a written 'board resolution' à advising that Mr. Alay was placed upon suspension with pay 'until a further investigation can be completed.'"

Raddatz said in the letter that the HCC board members made no effort to review or discuss the documentation Alay had prepared "and no date was set for a further meeting to discuss the underlying reimbursement matter."

FOR MORE INFO

HIV Community Coalition of Metropolitan Washington, D.C. 813 L St. SE Washington, DC 20003 202-543-6777 www.hccmetro.org

Nelson notified Alay in a letter May 20 that his employment agreement with the HCC would be terminated "effective immediately." The letter did not state a reason for Alay 's dismissal.

Alay , who has requested a jury trial, is seeking $300,000 in compensatory damages and $1 million in punitive damages. The D.C. Superior Court judge assigned to the case is Judge Anna Blackburne-Rigsby.

In addition to Nelson, Seigel and Gadson, the other HCC board members named in the lawsuit are Charles Debnam, Tyrone Beckwith, Jacqueline Coleman, Jose Guitierrez, Yvonne Green, Jim Harvey, James Wesley Hawkins, Milton Mills, David Peterson and Michael Sainte-Andress.

News reporter Rhonda Smith can be reached at rsmith@washblade.com.

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