A Lockheed Martin employee who was forced out of her position after she reported that her manager used company funds for inappropriate expenses and which may have been billed to the government, suffered illegal retaliation pursuant to the employee protection provisions of the Sarbanes-Oxley Act, a Department of Labor Administrative Law Judge decides.

The employee had several discussions with the company’s human resources vice president regarding her concerns about her manager’s possible misuse of company funds, which included purchasing a laptop for a soldier with whom the manager was having a personal relationship, renting limousines for soldiers for non-business purposes, renting hotels to spend time with soldier pen pals on non-business matters, purchasing give-away items so one of her pen pals could win an award, and for traveling to pursue her personal relationships. Subsequent to her complaint, the employee lost her office, her parking space, and her position, and she eventually resigned.

The ALJ says that a “preponderance of the evidence” shows that the employee “definitively and specifically communicated” her “reasonable belief that [her manager] had engaged in fraudulent conduct.” Since she satisfies this prong, the ALJ says the complainant “therefore also establishes that she engaged in protected activity under SOX….” The ALJ also determines that the complainant was constructively discharged, and ordered her reinstated to a comparable position to that which she occupied at the time of her employment with back pay and interest, reimbursement for all medical expenses incurred because of termination of medical benefits, including but not limited to health care premiums, compensatory damages of $75,000 for her emotional pain and suffering, attorney fees and costs. Brown v. Lockheed Martin