FILED IN MY OFFICE DISTRICT COURT CLERK 2110/2014 4:48:01 PM FIRST JUDICIAL DISTRICT STEPHEN T. PACHECO STATE OF NEW MEXICO iam COUNTY OF SANTA FE ja Case No,; D-101-CV-2014-00359 A. KURT SAENZ, and BRENT M. EASTWOOD, Plaintiffs, vs. NEW MEXICO ECONOMIC DEVELOPMENT DEPARTMENT; and JONATHAN (‘JON") BARELA, CABINET SECRETARY, in his official capacity; And BARBARA G. BRAZIL, DEPUTY CABINET SECRETARY, in her official capacity; Defendants. Plaintiffs, A. KURT SAENZ and Dr. BRENT M. EASTWOOD, state as their Complaint: L PARTIES, JURISDICTION and VENUE 1. Plaintiff A. KURT SAENZ, (hereinafter “SAENZ’) resides in Santa Fe County, New Mexico. SAENZ was hired as the Administrative Services Division Director “ASD Director” / Chief Financial Officer (“CFO”) of the New Mexico Economic Development Department on April 1, 2011. SAENZ, without cause or reason, was demoted from CFO of ASD to “Interdepartmental Affairs Liaison” which reported directly to the Defendant, Cabinet Secretary Jonathan “Jon” Barela. Defendants wrongfully terminated SAENZ on August 6, 2012. 2, Plaintiff Dr. BRENT M. EASTWOOD, Ph.D. (hereinafter “Dr, EASTWOOD") resides in Santa Fe County, New Mexico. Dr, EASTWOOD was an employee of the Economic Development Department {hereinafter “EDD”) and the Division Director of International Trade Director of Business Advocacy ijPageOffice from January 10, 2011 until Defendants wrongfully terminated him on April 11, 2012. 3. Defendant, NEW MEXICO ECONOMIC DEVELOPMENT DEPARTMENT [hereinafter “EDD”] is, a duly organized governmental department of the State of New Mexico, constituted in accordance with the laws, statutes and regulations of the State of New Mexico. EDD is amendable to suit as a governmental entity under the State statutes which Plaintiffs rely upon in bringing this lawsuit, Defendant EDD was the employer of SAENZ and Dr. ‘ASTWOOD and is a “Public Employer” as defined under the Whistle Blower Protection Act (hereinafter WPA”). See, N.M.S.A 1978, § 10-16C-2(C)(1). 4. Defendant JONATHAN (‘Jon") BARELA (hereinafter “BARELA’) is, upon information and belief, a resident of the City of Albuquerque, County of Bernalillo, State of New Mexico. Defendant BARELA is sued in his official capacity. Defendant BARELA is an “Officer” of EDD and a “Public Employer” as those terms are defined under the Whistle Blower Protection Act (hereinafter referred to as “WPA"). See, N.M.S.A 1978, § 10-16C-2(C\(4) et seq. 5. Defendant BARBARA G. BRAZIL (hereinafter “BRAZIL’) is, upon information and belief, a resident of the, City of Albuquerque, County of Bernalillo, State of New Mexico. Defendant BRAZIL is sued in her official capacity. Defendant BRAZIL is a ‘Public Employer’ as that term is defined under the WPA. See, N.M.S.A 1978, § 10-16C-2(C)(4). 2jPage6. The Court has subject matter jurisdiction under Article VI § 13, NMSA 1978, § 10-16C-4 et seg. (‘Whistleblower Protection Act” hereinafter referred to as WPA”). 7. SAENZ and Dr. EASTWOOD seek damages under WPA, N.M.S.A 1978, § 10-16C-4, et seq. 8. At all material times SAENZ and Dr. EASTWOOD were “Public Employees” as that term is defined under the WPA, N.M.S.A 1978, § 10-16C- 20B). 9. SAEN2’s employment was terminated on August 6, 2012. SAENZ was an ‘exempt employee as that term is defined under the State of New Mexico’s Personnel Board’s Ruies and Regulations, 10. Dr. EASTWOOD’s employment was terminated on April 11, 2012. Dr. EASTWOOD was an “exempt” employee as that term is defined under the State of New Mexico's Personne! Board’s Rules and Regulations, I. FACTS COMMON TO ALL COUNTS 1. SAENZ and Dr. EASTWOOD incorporate paragraphs 1 through 9 above. SAENZ was hired as the Chief Financial Officer (hereinafter referred to as CFO / ASD Director for the New Mexico EDD on April 1, 2011. 3. Dr. STWOOD was hired on January 10, 2011 and was the Division Director of International Trade and Director of the Office of Business Advocacy. 3\Page4. During SAENZ and Dr. EASTWOOD’s employment they witnessed unlawful and/or improper acts in the EDD and reported these matters to superior officers in New Mexico EDD which include but were not limited to the Defendants BARELA and Deputy Cabinet Secretary Barbara Brazil. Rather than investigate the matters which both SAENZ and Dr. EASTWOOD reported, the Defendants were more concerned about their own personal interests, personal financial gains and chose to terminate both SABNZ and Dr. EASTWOOD along with the EDD’s Finance Manager who also brought many of these matters to their attention. 5. On or about March 30, 2012, Dr. EASTWOOD was approached by both SAENZ and the EDD’s Finance Manager, with questions concerning an internal New Mexico EDD Spreadsheet that listed certain companies for “Angel” investments through a program administered by the New Mexico EDD. The program came directly under the supervision and control of the Defendants including BARELA. 6. Dr. EASTWOOD recognized the name *Cerelink” which was one of the companies listed on the Angel investments’ Spreadsheet. Dr. EASTWOOD knew that the Defendant BARELA was a shareholder and/or investor in Cerelink. Dr. EASTWOOD was advised that neither SAENZ nor the EDD Finance Manager were able to locate any EDD financial documents, via the State of New Mexico’s “SHARE” system, showing the information contained on the Spreadsheet. 4[Page7. Dr. EASTWOOD had knowledge that the Defendant BARELA had made conflicting statements concerning his interests in Cerelink which was reported in the local newspapers. Additionally, when Defendant BARELA ran. for U.S. Congress his interests in Cerelink was reported in both print and broadcast media. 8. Upon information and belief, Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil conspired to recruit investors to invest in Cerelink throughout 2011. These investors were promised a tax credit for their Angel investment. There is at least $134,000 in Angel investments to Cerelink from 2011 that was unaccounted for. These four investors received at least $34,000 in tax credits. Some of the investors donated to Barela’s 2010 Congressional Campaign. From the beginning of 2011, Barela and Brazil knew that Cerelink had lost its main client and owed nearly $1 million in unpaid bills to the State “Encanto” Supercomputer (New Mexico Computer Application Center}, plus Cerelink had not paid other creditors. Since Cerelink was struggling financially, Defendant BARELA and Deputy Cabinet Sccretary Barbara Brazil knew that in 2011 they needed more investors to help keep Cerelink afloat. Cerelink ended its operations in December, 2011. During that same month Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil approved applications for Cerelink Angel investments. Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil had lobbied for the passage of a bill that would extend the Angel Investment Tax Credit that was to sunset in January 2012, Governor Susana Martinez later announced in July, 2012, that SiPagethe state would be repossessing the Encanto State Supercomputer, effectively climinating the debt Cerelink owed the state. 9. Dr. EASTWOOD had a good faith belief that Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil were improperly, unethically and/or illegally seeking Angel investment tax credits through New Mexico EDD and related to Cerelink, 10. Dr. EASTWOOD in the summer of 2012 anonymously reported his good faith beliefs concerning the Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil's conduct regarding Cerelink, procurement code violations, “bid rigging’, contract violations and attempted cover-up to the New Mexico Attorney General’s Office, New Mexico Regulations and Licensing Department’s Security Division and the State Auditor’s Office. SAENZ and the New Mexico EDD Finance Manager brought these matters to the attention of New Mexico Department of Finance and Administration. 11, On or about November 12, 2012, Dr. EASTWOOD was interviewed by a federal agency regarding public corruption, money laundering, money funneling and Defendant BARELA and Deputy Secretary Barbara Brazil’s activities with Cerelink. SAENZ was contacted approximately two weeks after EASTWOOD, by the same federal agency. 12. On December 2, 2011, Dr. EASTWOOD became aware of certain departmental procurement code violations that occurred on November 29, 2011; December 1, 2011; December 2, 2011; and January 13, 2012. Dr. 6[PageEASTWOOD also became aware of three (3) improper New Mexico EDD contracts. 13. On December 2, 2011, SAENZ and the New Mexico EDD Financial Manager came to Dr. EASTWOOD, who was a member of the departmental management team, and said that during the previous several days that Deputy Cabinet Secretary Barbara Brazil repeatedly told them to not speak the words “procurement code violations” to other employees and to not use the words “procurement code violations” in government emails, SAENZ, sometime in late August of 2011 or early September 2011, was made aware of a procurement code violation with a company called “Real Time Sites” or ‘Real Time Solutions’. At a meeting with Deputy Cabinet Secretary Barbara Brazil, General Counsel Wade Jackson, Brent Eastwood, Angela Heisel, Tommy Trujillo, Kevin Proulx, Dolores Gonzales, Danni Sutana and other employees it was disclosed that Real Time Solutions was doing work for the state of New Mexico without a contract. The services were in excess of $30,000 and performed without a contract. SAENZ requested that the work being performed immediately stop because it was a procurement code violation. SAENZ advised the employces in attendance that (1) the work must be stopped immediate! and (2) a contract must be worked up and provided to SAENZ to have the Department of Finance Administration (“DFA") process and approve in order to not have a procurement code violation. However, neither of SAENZ’s instructions was followed and the Real Time Solutions continued to work without a contract. SAENZ brought this matter to the attention of Defendant 7iPageBARELA who responded that “Kurt, you can’t expect Angela and the others to know about the Procurement Code.” Defendant BARELA then stated that “this is a contract requested by the Governor”. Dr. EASTWOOD had also taken the Real Time Solution procurement code violation to Deputy Cabinet Secretary Barbara Brazil with no results. 14. Defendant BRAZIL refused to stop the Real Time Solutions contractor from providing services and the contractor completed its build out of New Mexico EDD's website without @ contract from the State of New Mexico. Instead of Defendant BRAZIL working to fix the procurement code violation she instead went the Finance Manager's office, a direct report to SAENZ, and “bad mouthed” him to the employee. The Finance Manager felt uncomfortable with Defendant BRAZIL’s statements about her immediate supervisor and requested that both the State Personnel Office and SAENZ be present during such discussions. 15. After SAENZ worked diligently to correct the Real Time Solution procurement code violation, he was summoned into Defendant BARELA’s office and told that he (SAENZ) had “put a bullet to his head” because the e-mails related to the issue stated that there was a procurement code violation. Although SAENZ explained that the e-mail stating a procurement code violation came from Larry Maxwell of the State Purchasing Office and it was Mr. Maxwell’s characterization of the issue, Defendant BARELA became visibly upset, blamed SAENZ and stated that this could come out in an IPRA request. SAENZ was later advised that Defendant BARELA was having an extramarital 8iPageaffair with Angela Hcisel and that Defendant BARELA was protecting Ms. Heisel by blaming SAENZ for the Real ‘Time Solutions procurement code violation. 16. SAENZ, during an offsite lunch with Deputy Cabinet Secretary Barbara Brazil earlier that week, was instructed not to use the words “procurement code violations” in his e-mails. On December 2, 2011, thinking that Deputy Cabinet Secretary Barbara Brazil was engaging in a cover-up of. improper behavior, procurement code violations, and illegal contracting, Dr. EASTWOOD explained the WPA to SAENZ and the New Mexico EED Financial Manager, warned them they might be retaliated against for coming forward, and encouraged them to sign and date a copy of the WPA to show that they had been properly advised on the WPA statute. 17. On December 3, 2011, when Dr. EASTWOOD notified Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil about the procurement code violations, he had been instructed to always put sensitive information in a personal e-mail and not the state’s email system, This instruction was given to Dr. EASTWOOD by the Governor’s Office management - Scott Darnell, Ryan Cangiolosi and EDD PIO Angela Heisel - as personnel e-mail are not subject to IPRA requests. 18. EASTWOOD became aware that certain contracts dated: July 1, 2011; November 15, 2011 and December 11, 2011; required the signature of New Mexico EDD’s CFO. However these contracts were improperly authorized without the CFO’s knowledge and/or approval. Dr. EASTWOOD learned that 9|PageSAENZ had no knowledge that these contracts had been signed behind his back, without his knowledge and did not have the required CFO signature. 19. Dr, EASTWOOD, based upon his good faith belief, advised SAENZ and the EDD Finance Manager that the subject matter concerning the New Mexico EDD Spreadsheet and EDD’s investment tax credit program and the contracts signed without the CFO's knowledge fell within the WPA. 20. On or about December 3, 2011, Dr. EASTWOOD notified Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil that he was blowing the whistle on the procurement code violations, the impropriety involving the approval of contracts without the CFO’s signature and/or knowledge and their attempts to cover-up other reported improper activities. 21, Dr, EASTWOOD requested that Defendants BARELA and Deputy Cabinet Secretary Barbara Brazil conduct an investigation of the improper and possible illegal activities which Dr. EASTWOOD had disclosed to them. 22, Dr. EASTWOOD notified Defendant BARELA and Deputy Cabinet Sceretary Barbara Brazil that the Spaceport had a ‘ballooning budget” due to delays. That the Spaceport had potentially dangerous and disastrous aircraft safety issues regarding the runways. That the Spaceport was not creating jobs as promised and tax payer money was being wasted. That the Spaceport Director Christine Anderson refused to help recruit companies and to market the Spaceport. 23, Dr. EASTWOOD in weekly reports submitted to Deputy Cabinet Secretary Barbara Brazil and the Governor's Office in 2011 and 2012, raised 10|Pagethe issues with the Space Port Director and concerning both the recruitment and marketing for the Space Port. This information was also given directly to the Deputy Cabinet Secretary Barbara Brazil on several occasions by Dr. EASTWOOD via the state’s e-mail system. During New Mexico EDD management meetings Deputy Cabinet Secretary Barbara Brazil refused to address the issues raised by Dr. EASTWOOD and concerning inadequate and insufficient Spaceport company recruitment and marketing, job creation or economic development in general as it related to the Spaceport. 24. Dr. EASTWOOD informed Defendant BARELA personally that he had concerns that tax payer’s money was being wasted on the Spaceport and that the Director was spending money needlessly. By way of example and not by limitation, Dr. EASTWOOD informed Defendant BARBLA in December 2011 that Virgin Galactic required that the state of New Mexico pay for an extension of the Space Port runway. The request for an extended runway would require that the Director Christine Anderson re-program future funding which would result in a ballooning of the Space Port budget. Dr. EASTWOOD advised Defendant BARELA that both the Director Anderson and the General Counsel Wade Jackson were aware of Virgin Galactic’s request that previous summer but did not disclose the request to New Mexico EDD or the Governor's Office in any weekly report. It was not until December 2011 that the issue was disclosed to New Mexico EDD. The late disclosure resulted in unnecessary and costly construction delays. [Pa25. Rather than address these issues Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil never advised the Governor's Office of the issues and concerns that were raised and instead, retaliated against Dr. EASTWOOD and terminated his employment. 26. EASTWOOD, in September 2012 became aware of certain improper “bid rigging” activities relating to the 2012 Governor’s Conference. 27. BASTWOOD on several occasions, between January 11, 2011 to June 1, 2011, witnessed the Deputy Cabinet Secretary Barbara Brazil working three (3) Dairy Queen Franchises which she had a personal interest in while simultaneously being paid by the State of New Mexico. Defendants BARELA and BRAZIL jointly decided to relocate the Albuquerque EDD office next to one of the three (3) Dairy Queens in order for Defendant BRAZIL to be able to work: at the business while being paid by the State of New Mexico as the Deputy Secretary for the EDD. 28. EDD through the Administrative Services Division (“ASD”) was responsible for managing “Spaceport America’. On April 30, 2012, SAENZ disclosed to Defendant BRAZIL that the ASD was doing a lot of the work that the Spaceport Contractor was requited to do under its contract with the State of New Mexico. SAENZ stated that under the contract the term “administratively” means that ASD “processes” the wor, not that it actually does the work and that is the Contractor's job. Deputy Cabinet Secretary Barbara Brazil refused to recognize the issue concerning the State’s payment of tax payer dollars on a contract with the Spaceport who was not providing the [Pageservices it had contracted to provide to the State of New Mexico. Instead, Deputy Cabinet Secretary Barbara Brazil elected to attack SAENZ and make him a scape goat and threatened him by asking “are you looking to leave [EDD] now". SAENZ was told that Deputy Cabinet Secretary Barbara Brazil was bragging that she was going to have SAENZ removed as the CFO / ASD Director. 29. On August 9, 2011, SAENZ received an e-mail regarding a procurement code violation at the New Mexico Spaceport. Due to a longer period of time than covered under a competitive pricing agreement, a contractor continued to provide work, even though the contract had expired. ‘The contractor, without a contract, provided work from April 2011 to either November or December 2011. SAENZ, during this time, was intentionally kept uninformed by Defendant BRAZIL and she persistently interfered with SAENZ duties as the CFO. Defendant BRAZIL stated to SAENZ that all your division, “ASD*, functions as is a processing station like a “mail room”, Defendant BRAZIL ordered SAENZ to not speak to the Department of Finance and Administration (“DPA”) or any Legislative Finance Committee (hereinafter “LFC’) analyst regarding any problems or issues within New Mexico EDD. Deputy Cabinet Secretary Barbra Brazil order to SAENZ was intended to silence SAENZ regarding the procurement code violations and his whistle blowing related to Cerelink as well as any other illegal, unethical or improper activities of the Defendant BARELA and Deputy Cabinet Secretary Barbra Brazil. B|Poge30. Deputy Cabinet Secretary Barbara Brazil’s view of ASD and SAENZ’s position as CFO was followed by New Mexico EDD’s General Counsel and Human Resources Director, Wade Jackson, When Virgin Galactic and the Executive Director of the Spaceport proposed an expensive extension of the runway and a roadway ieading to the Spaceport, Wade Jackson was aware of the proposal for six months before disclosing the matter. However it was only disclosed after SAENZ and Dr. EASTWOOD found out, through another source, and they confronted Wade Jackson. 31, During a mecting with Governor's Deputy Chief of Staff Ryan Cangiolosi, Director of the Space Port Christine Anderson and Dr. EASTWOOD in February 2012, the Space Port Director Christine Anderson was instructed by Deputy Chief of Staff Ryan Cangiolosi to write a contract for $50,000 so that it would not have to go out for bid regarding construction of a roadway to the Spaceport. Dr. EASTWOOD in good faith believed this was a questionable attempt to circumvent the state’s procurement code. 32. In April 2012, SAENZ was advised by the Finance Manager that a direct report of the Finance Manager, Dolores Gonzales, reported that the General Counsel Wade Jackson was having an extramarital affair with the New Mexico EDD Administrative Assistant. SAENZ went directly to the General Counsel Wade Jackson and advised him of the information regarding the alleged extramarital affair which the Finance Manager received from Delores Gonzales, SAENZ advi ed the General Counsel Wade Jackson of the potential i4[Pagefor the employee to have grounds to file a claim of sexual harassment against New Mexico EDD. 33. SAENZ reported the incident involving Wade Jackson’s extramarital affair to Defendant BARELA. SAENZ also, in the same conversation, reported that he received information that Defendant BARELA was having an extramarital affair and that he was concerned that the EDD could be exposed to sexual harassment lawsuits. 34. SAENZ also notified Defendant BARELA of the procurement code violations, the misleading memorandum which Wade Jackson wrote and made it appear that SAENZ had authored and regarding the New Mexico EDD Finance Manager, the issue with Cerclink and the EDD tax incentive program which involved him (BARELA), as well as other problems that he was concerned about and which created exposure for possible lawsuits against New Mexico EDD and/or involved unethical, illegal or improper activities, SAENZ expressed his concerns that these activities could damage the Governor. 35. After Dr. EASTWOOD was terminated, Defendant BARELA summoned SAENZ into his office, pounded on his desk and demanded that SAENZ “tell him everything he knew” because “I just fired EASTWOOD”. Defendant BARELA then asked SAENZ are you with me or with EASTWOOD, Defendant BARELA then stated, ‘I'm trying to save your job”. SAENZ while bewildered put together the fact that Dr. EASTWOOD had told him (SAENZ) earlier that he was blowing the whistle on all the issues to Defendant BARELA. SAENZ then asked Defendant BARELA if he was referring to “., the Is|PageProcurement code violations, contracts not being signed by the CFO, use of Angel Investment money for Cerelink, rumors of Wade having an affair with Antoinette Moya, and rumors of him having an affair with Angela Heisel?” To which Defendant BARELA sat back in his chair stone faced and asked SAENZ — “what do you tell people when they say things about me and Angela” 36. Defendant BARELA, rather than investigate the matters which SAENZ reported to him, immediately, then and there, demoted SAENZ from being the CFO / ASD Director to making him the Interdepartmental Affairs Liaison which involved SAENZ, basically moving furniture and remodeling office spaces, 37. On April 5, 2012, Dr. STWOOD had a telephone conversation with Defendant BARELA in which Dr. EASTWOOD explained that Defendant BARELA’s decision to make General Counsel Wade Jackson a supervisor over the woman that he was having an extramarital affair with could expose New Mexico EDD to a potential sexual harassment lawsuit. Dr. EASTWOOD advised other employees in addition to management at New Mexico EDD of his concerns regarding General Counsel Wade Jackson's supervision of an employee that he was having an affair with. Defendant BARELA, rather than investigate the matter, retaliated against Dr. EASTWOOD and terminated his employment. 38. In March and April of 2012, Defendant BAREBLA and Deputy Cabinet Secretary Barbara Brazil directed Dr. EASTWOOD to travel to the State of Chihuahua and City of Chihuahua, Mexico. Defendant BARELA and Deputy I6|PageCabinet Secretary Barbara Brazil directed Dr. EASTWOOD to “collect money” from the business owners at these locations in order to create a “slush fund? for marketing the economic benefits of the border region. 39. Dr, EASTWOOD, in a written report to Deputy Cabinet Secretary Barbara Brazil, which was supposed to be forwarded to the Governor's Office, advised Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil that he believed collecting money from business owners in Mexico Cities in order to create a slush fund for marketing was illegal as there is no existing mechanism in state government for a state employee to collect cash or checks from forcign citizens. Dr. EASTWOOD reported to the Governor's Office, through his weekly reports, his concerns with being asked to go to Mexico and collect cash or checks from foreign citizens. In several weekly written reports, Dr, EASTWOOD stated that he was concerned for his personal safety if he was forced to travel to the State of Chihuahua because of the Mexican Drug Cartels had been known to engage in kidnapping, murder and ransom. 40. Asa direct result of Dr. EASTWOOD’s whistle blowing disclosures to Defendant BARELA and Deputy Cabinet Secretary Barbara Brazil, Dr. EASTWOOD was (1) no longer invited to senior management and personnel meetings; (2) removed from the senior management team; (3} was falsely accused of sending anonymous e-mails to the Governor’s Office about illegal activities in New Mexico EDD; and (4) was terminated and told it was for sending anonymous e-mails to the Governor’s Office. On the day of his I7[Pagetermination the New Mexico State Police were present to oversee Dr. EASTWOOD removing his personal belongings from his office. 41. Defendant BARELA, in terminating Dr. EASTWOOD, attempted to set up a physical confrontation by “pointing his finger at me [EASTWOOD] and saying, come and get me." Defendant BARELA in addition, took a United States flag off of EASTWOOD's desk and threw it down on the desk in an attempt to bait Dr. EASTWOOD into a physical confrontation. 42. Defendant BARELA then humiliated, embarrassed and demeaned Dr. EASTWOOD by calling the New Mexico State Police and falsely reporting to EASTWOOD'S fellow co-workers, including SAENZ that he [BASTWOOD] had violently attacked him [Defendant BARELA] both physically and verbally. Defendant BARELA also falsely reported to Dr. EASTWOOD’s co-employees, including SAENZ that Dr. EASTWOOD had on other occasions come back to the New Mexico EDD office and committed act of violence in the office. 43. As a direct result of the Defendant BARELA’s retaliation against SAENZ and Dr. EASTWOOD, each had their characters and professional reputations defamed, each was “black-listed” and/or refused employment for positions within the State of New Mexico and other outside governmental agencies that they were fully qualified to perform, COUNT I VIOLATION OF THE NEW MEXICO WHISTLEBLOWER ACT 44. SAENZ and Dr. EASTWOOD incorporate paragraphs 1 through 43. 18 [Page45. SAENZ and Dr. EASTWOOD engaged in protected activity by informing Defendants of procurement code violations; possible claims for sexual harassment by female employees that Defendant BARELA had an affair with Angela Heisel, Public Information Office (“PIO”), and Wade Jackson had an affair with a NMEDD Executive Assistant; the fraudulent creation of documents which exposed EDD to possible employee claims; improper and unethical handling of state investment tax credits through EDD and involving “Cerelink” and both Defendants; wasteful activities at the New Mexico Spaceport; being interviewed by a federal agency looking into public corruption, money Jaundering and money funneling in state government; improper approval of contracts without the CFO’s signature or knowledge. 46. The Defendant EDD, through Defendant BARELA, retaliated against SAENZ and Dr, EASTWOOD and wrongfully terminated their employment. 47. As a result each SAENZ and Dr. EASTWOOD have suffered the following compensatory damages: a. Loss of wages; b. Loss of benefits; c. Relocation and moving expenses; d. Job Searching expenses; ¢. Humiliation and embarrassment; and f. Attorney fees 19|PageWHEREFORE, SAENZ and Dr. EASTWOOD pray for judgment against Defendant EDD and Defendant BARELA for: A. Double the amount of back pay; B. Damages for humiliation and embarrassment; C. Pre-Judgment and Post-Judgment Interest; D. Cost of suit; E. Compensatory damages; F. Personal expenses; G. Attorney fees; and H. Any further relief the Court deems just and proper. COUNT IL VIOLATION OF THE FRAUD AGAINST TAXPAYERS ACT 50. SAENZ and Dr, EASTWOOD incorporate paragraphs 1 through 49. 51. SAENZ and Dr. EASTWOOD's internal complaints and interview with a federal agency concerning public corruption, money laundering and money funneling in state government; the reported violations of the procurement code, the New Mexico investment tax credit contained on the New Mexico EDD spreadsheet, and other instances which constitute malfeasance, waste and abuse of authority which were communicated to the Attorney General’s office and State Auditor were lawful acts disclosing information to a government or law enforcement agency within the meaning of the Fraud Against Taxpayers Act (“FATA”), NMSA 1978, § 44-9-11(B).52. The Defendant EDD and Defendant BARELA retaliated against SAENZ and Dr, EASTWOOD and wrongfully terminated their employment for engaging in protected communications to the Attorney General, State Auditor and the federal agency. 53. Defendants, all of them, violated FATA, 54. Defendants BARELA’s conduct was willful, wanton, and/or in reckless disregard for SAENZ and Dr. EASTWOOD’s rights. 48. As a result cach SAENZ and Dr. EASTWOOD have suffered the following compensatory damages; g. Loss of wages; h. Loss of beneiits; i, Relocation and moving expenses; j. Job Searching expenses; k, Humiliation and embarrassment; and 1. Attorney fees WHEREFORE, SAENZ and Dr. EASTWOOD pray for judgment against Defendant EDD and Defendant BARELA for: A, Double the amount of back pay; B, Damages for humiliation and embarrassment; C. Pre-Judgment and Post-Judgment Interest; D. Cost of suit; Compensatory damages; F. Personal expenses; al[PageG. Punitive Damages; H, Attorney fees; and 1. Any further relief the Court deems just and proper. Submitted by: /s/ Nathaniel V. Thompkins Nathaniel V. Thompkins ‘NEW MEXICO FIRM, LLC 103 N. St. Francis Drive, Unit A Santa Fe, NM 87501 Phone: (505) 988-9750 Counsel for Plaintiffs 2|Page