Court Digest

New York
Judge: Former mayor can run again despite federal conviction
SPRING VALLEY, N.Y. (AP) — Two candidates who have been convicted on corruption charges want to be mayor of the suburban New York village of Spring Valley, but a judge ruled that only one is eligible to run.

Wednesday's ruling by State Supreme Court Justice Paul Marx means that former Spring Valley mayor Noramie Jasmin can run for her old seat in the June 22 Democratic primary even though she was found guilty of federal mail fraud and extortion charges in 2015 and served four years in prison.

But former village trustee Vilair Fonvil, who was convicted on state charges for stealing $11,000 from a summer camp run by the village, cannot run, the judge ruled.

Fonvil had sued to knock Jasmin off the ballot. She countersued and won because her conviction was in federal court and his was in state court.

Fonvil "is clearly and unequivocally ineligible" to hold office because of his conviction on state charges even though he has appealed that conviction, the judge ruled. But Jasmin's federal felony convictions "do not disqualify her from running for office" under the same statute that bars Fonvil from running, Marx ruled.

"This case illustrates the current state of the Public Officers Law and the difference between a federal conviction and state conviction on one's eligibility for public office," Ali Najmi, an attorney for Jasmin, said in an email.

A message seeking comment was left with an attorney for Fonvil.

Spring Valley is a village of about 31,000 people located some 35 miles (56 kilometers) north of New York City. The winner of the June 22 Democratic primary will almost certainly be the next mayor of the overwhelmingly Democratic community.
Other candidates include incumbent Alan Simon and former mayor Demeza Delhomme, who was jailed for contempt in 2014  in a dispute over a day camp.

New Mexico
State settles retaliation lawsuit by whistleblower
SANTA FE, N.M. (AP) — The state of New Mexico has reached a $260,000 settlement with a whistleblower who alleged retaliation by state insurance regulators after she reported that a major health care insurer was allegedly avoiding tax payments.

An attorney for Shawna Maestas confirmed the financial settlement Wednesday after the terms were published on a state clearinghouse website. The agreement ensures that Maestas can seek work at other state agencies.

State Insurance Superintendent Russell Toal says that both parties in the litigation agreed that it made sense to reach a settlement. His leadership at the agency began in January 2020, more than a year after Maestas left in April 2018.

Maestas, who previously oversaw the state's financial audit bureau, and two former colleagues at the Office of the Superintendent of Insurance are still pursuing the state for a 20% share of a roughly $18 million settlement with Presbyterian Health Plan for alleged underpayment of taxes on insurance premiums.

That case before the state Court of Appeals hinges on provisions of the Fraud Against Taxpayers Act that can provide whistleblowers who report wrongdoing between 15% and 25% of funds recovered by state prosecutors — an incentive designed by legislators to root out fraud.

Kate Ferlic, an attorney for Maestas and co-plaintiffs, said the outcome has implications for other public employees who witness corruption.

When "the Office of the Superintendent of Insurance refuses to make good on an agreement with the state, it really does have a chilling effect on other folks coming forward with valuable information that leads to the recovery of money for taxpayers," she said.

Toal said that payment of about $1 million already was provided to the three whistleblowers for bringing insurance underpayments to light.

"Our view — which includes me — is they are not owed the money and the court ruled ... in the state's favor," he said of the additional payment sought on appeal.

Maestas says she first brought concerns about the alleged tax underpayments in 2015 to then-superintendent of insurance John Franchini and eventually to the attorney general's office.

She claimed in her retaliation lawsuit that insurance regulators "overtly and covertly" attempted to stop her from exposing tax fraud and created a hostile work environment by assigning her menial tasks and an overwhelming workload.

Presbyterian Health Plan agreed in 2017 to pay a $18.5 million to resolve claims of unpaid premium taxes that dated back more than a decade. Presbyterian did not acknowledge wrongdoing, and fraud charges were dismissed.

The events stoked concern that state insurance regulators favored the industry over public interests.

Reforms approved by the Legislature in 2018 and 2019 transferred oversight of insurance premium tax collections and enforcement provisions to the Taxation and Revenue Department, starting in 2020.

New York
Judge: R. Kelly to be moved to NYC for sex-trafficking trial
NEW YORK (AP) — A federal judge gave the green light Thursday to move jailed R&B singer R. Kelly to New York City to go on trial this summer after several delays.

Kelly has been held in Chicago, where he's facing a potential second trial in the fall in a separate federal case related to  a sprawling sex crimes investigation.

The trial in Brooklyn federal court had been put off because of the pandemic. But at a virtual hearing, U.S. District Judge Ann Donnelly told lawyers that there are courthouse protections in place that would allow it to finally go forward on Aug. 9.

The judge also said the government should start preparations to move Kelly to a New York jail, most likely the Metropolitan Detention Center in Brooklyn. The exact timing was unclear.

Prosecutors in Brooklyn allege Kelly led an enterprise made up of his managers, bodyguards and other employees who helped him recruit women and girls for sex. A jury is expected to hear testimony from alleged victims, each identified in court papers only as "Jane Doe."

Kelly has denied the sex trafficking allegations. One of his attorneys, Steve Greenberg, said on Thursday that his client is looking forward to the trial.

Florida
Lawsuit targets pay practices at Olive Garden's parent
A group that seeks higher guaranteed wages for restaurant workers is suing Olive Garden's parent company, saying its pay policies make workers more likely to ensure harassment and discrimination.

One Fair Wage filed the lawsuit Thursday against Orlando, Florida-based Darden Restaurants. Darden employs more than 167,000 hourly workers at 1,800 restaurants in the U.S. and Canada. In addition to the Olive Garden chain, it owns Longhorn Steakhouse, Cheddar's Scratch Kitchen, Yard House and The Capital Grille.

The lawsuit says Darden has a policy of paying its tipped workers subminimum wages as low as $2.13 per hour in the 43 states that allow that practice. Tips are added to those wages to ensure employees make minimum wages; if wages and tips don't equal the state or federal minimum, Darden must make up the difference.

One Fair Wage says Darden's policy forces workers to put up with harassment and discrimination because if they complain they might get lower tips. Seventy percent of tipped workers are women, the group says, and restaurant workers report higher levels of sexual harassment than any other profession.

"The racism and discrimination is so vast in my restaurant," said Ptorsha Cozart, who works at a Cheddar Scratch Kitchen in Kenosha, Wisconsin. Cozart, who is Black, said customers will sometimes request a white server or ask her to pull down her mask so they can decide if she's attractive before they tip her.

In the remaining seven states, including California and Oregon, Darden is required to pay workers a minimum wage and then add tips on top of it. One Fair Wage says that system makes workers significantly less likely to have to ensure harassment.

One Fair Wage's Executive Director Saru Jayaraman said that while subminimum wages for tipped workers are widespread, the group is targeting Darden because it's one of the largest employers of tipped workers in the U.S.

"Darden lobbies to ensure this is the law. Darden makes it the law," Jayaraman said.

In a statement, Darden said One Fair Wage's dispute is with federal and state wage laws, not Darden itself.

Darden said its tipped workers earn an average of $20 per hour. Darden also recently raised its minimum wage in an effort to better compete for scarce workers as it emerges from the pandemic. The company said last month it will pay workers at least $10 per hour __ including tips __ this year, rising to $12 per hour in 2023.

One Fair Wage is also backing federal legislation that would raise the minimum wage to $15 per hour and gradually raise subminimum wages for tipped workers.

Carisa Shade, 37, who works for $2.13 per hour plus tips as a bartender at an Olive Garden in North Carolina, said she sometimes has to endure hours of harassment with a smile on her face so she can bring home enough money to support her four children.

"I deserve, and my kids deserve, a lot more than that," she said. "It's just not enough. It's never going to be enough unless this gets fixed."

The lawsuit was filed with the U.S. District Court in Northern California. It seeks a ruling that Darden's practices are illegal.