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PENNSYLVANIA RECORD

Wednesday, May 1, 2024

Accounting manager accused of embezzlement and payroll fraud sues former employer

Lawsuits
Hughadonaghue

Donaghue | Donaghue & Labrum

MEDIA – A Delaware County woman who formerly served in accounting of a fitness non-profit group for kids and a for-profit company has filed a slander suit against her former employer, alleging that he publicly and falsely accused her of stealing money from the company and committing payroll fraud.

Donna Cifelli-Smith of West Grove filed suit in the Delaware County Court of Common Pleas on May 24 versus Healthy Kids Running Series and its president Kenneth Long, both of Thornton.

“Plaintiff Cifelli-Smith served as the accounting manager from Jan. 7, 2019 until April 5, 2022, for both defendant Healthy Kids Running Series and for Victory Event Series, a for-profit company. Both defendant Healthy Kids Running Series and Victory Event Series shared the same office space and officers until August of 2021, when defendant Long assumed the presidency of Healthy Kids Running Series,” the suit says.

“In October of 2021, Victory Event Series moved its offices, but plaintiff continued to act as the accounting manager for Victory Event Series and defendant Healthy Kids Running Series until April 5, 2022. Plaintiff felt compelled to resign from defendant Healthy Kids Running Series on April 5, 2022, due to the work environment created by the defendant Long, after he joined Healthy Kids Running Series in August of 2021 as its president.”

On or about April 27, 2022, the claims that defendant Long intentionally and maliciously instructed his part time associate executive director, Dan Boal, to announce to those assembled at a staff meeting of employees of Healthy Kids Running Series that plaintiff had been “stealing money from the company,” and had engaged in “payroll fraud.”

Boal added in response to a question that plaintiff had created false vendors and issued checks to herself and that the company was “still uncovering and tallying” the fraud, but did not yet know the total amount stolen by plaintiff. Boal also stated, clearly aware of the falsity of his statement, that the company “could not prosecute her because she no longer works here.”

“Plaintiff believes and therefor avers that defendant Long, knowing the statements were false and with the intent to impugn plaintiff’s professional reputation as well as her character, instructed Boal to announce at the staff meeting that plaintiff was stealing from the company. Defendant Long also told the staff that no one was permitted to speak with plaintiff,” the suit states.

“Defendant Kenneth Long himself stated to Scott Ely, the former Executive Director of Healthy Kids Running Series, that plaintiff had stolen money from the company. As the result of defendant Long’s outrageous conduct, plaintiff has suffered personal and professional humiliation, mental anguish and suffering, lost wages and benefits, and has been unable to seek suitable employment.”

For counts of slander per se and respondeat superior liability, the plaintiff is seeking damages in excess of $50,000, plus interest, costs and punitive damages.

The plaintiff is represented by Hugh A. Donaghue, Kathryn L. Labrum and Tyler J. Therriault of Donaghue & Labrum, in Media.

The defendants have not yet obtained legal counsel.

Delaware County Court of Common Pleas case CV-2022-003566

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com

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