Former Aerospace Supplier Executive Claims She Was Fired for Reporting Fraud

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A former vice president of finance at Transdigm, a Washington aerospace supplier, has accused the company of retaliatory termination after she reported financial fraud. The discrimination suit alleged that Transdigm Group Inc. and AvtechTyee Inc. fired her for being an “emotional” and “aggressive” Latina woman who lacked tact and would not collaborate with others. The plaintiff, Phyllis Santistevan-Sullivan, said the companies were “fostering a retaliatory culture that discourages employees from reporting alleged fraudulent financial schemes.”

Case background

Sullivan was the only person of color on her executive team, and one of two women. Starting in 2018, she became AvtechTyee’s vice president of finance, which required her to ensure the company’s financial reporting was accurate. However, Sullivan says both companies were repeatedly “manipulating revenue.” This included one incident where they recorded revenue in the wrong period, pointing to improper accounting practices. When Sullivan reported that the company intentionally inflated and misstated revenue, her boss prohibited her from speaking about the alleged financial misconduct.

Weeks after speaking up, Sullivan received her first negative performance review, including criticism about how she reported concerns. Sullivan was hit with gendered and discriminatory terms like “aggressive and overly emotional.” Days after that review, her job was posted online. She was fired a few months later.

The lawsuit accuses both employees of race and gender discrimination, wrongful discharge and retaliation, which violates the Sarbanes-Oxley Act. Sullivan is asking for the companies to remove negative and derogatory information from her personnel and employment files, in addition to compensation for lost pay, benefits and other punitive and compensatory damages.

If you’ve suffered discrimination at work or were fired in retaliation for reporting misconduct, help is available. Contact an experienced whistleblower attorney at Kardell Law Group to learn more about your legal options.

By Steve Kardell | Published May 25, 2023 | Posted in Employee Rights, Fraud, Whistleblower Litigation | Tagged employer retaliation, employment discrimination, financial fraud

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