Karen R. Miniex, vice president and general counsel, Houston Housing Authority/photo by John Everett

A jury awarded Houston Housing Authority's former general counsel $1.87 million late Thursday in a whistleblower suit against the agency.

The $1.87 million covers back pay, front pay and past and future mental anguish for Karen Miniex, who served as the agency's general counsel for four years, her representative, Berg & Androphy partner Zenobia Harris Bivens, told Corporate Counsel. In her suit, filed in the U.S. District Court for the Southern District of Texas, Miniex claimed she was fired from the agency in December 2016 for raising concerns of employee voucher fraud.

“Nobody should be punished for doing the right thing and trying to stop fraud,” Bivens said. “One would hope the Houston Housing Authority would take this as a sign things need to change.”

The agency told Miniex she was terminated for unexcused absences, tardiness and decreased productivity.

Brian Begle, the managing partner of Houston's Olson & Olson, represented the agency.

“Houston Housing Authority counsel is working to determine our next step,” an agency spokesperson emailed in a statement. “At this time, we are considering all available legal options including an appeal, if necessary. We appreciate the time and consideration given by the court and jury during our case.”

According to Miniex's complaint, she received a tip that an agency employee was selling Section 8 vouchers for profit in March 2016. The following month, another tip claimed an employee was selling Veterans Affairs Supportive Housing vouchers, which are reserved for homeless veterans.

She instructed fraud investigator Ben Skalka to look into the claims. In June 2016, he informed her one employee had sold Veterans Affairs Supportive Housing vouchers to nonveterans for personal profit and that further investigation would likely unearth “additional, more pervasive acts of fraud.”

When Miniex informed the agency's chief executive officer and president Tory Gunsolley, her complaint alleges he dismissed her, saying, “Well, it is not like we don't have more vouchers than veterans anyway.”

Miniex claims Gunsolley continued to dismiss her reports of fraud and refused to take action against impacted department managers. As she continued to raise concerns, the CEO said she should “consider whether she wanted to be at HHA” because she was not being a “team player.”

After she raised the issue with the agency's board, Miniex said she faced increased retaliation from leaders, who concealed information from her and closely monitored her in-office hours. In December 2016, she was fired without first receiving a formal written warning or paid administrative leave “in direct contravention of HHA's time-honored, well-documented progressive disciplinary policy.”

Bivens said Thursday's verdict highlights the importance of taking general counsel recommendations and investigations seriously at all organizations.

“It's very important everybody from the top to the bottom understands that there are rules that have to be followed, and they all have to help each other follow the rules,” Bivens said. “I really hope that the city of Houston, the board of commissioners, and the board that has oversight of the housing authority will make some changes.”

Read Miniex's complaint in full here:

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