Tampa Bay jobs chief Edward Peachey’s firing upended

Mark Puente

Zachary T. SampsonTimes staff writer

Published: March 6, 2018

Updated: March 6, 2018 at 11:03 AM

Edward Peachey is back –– for now.

The decisions to fire Pinellas and Hillsborough counties’ jobs chief have been temporarily put on hold over the threat of a lawsuit, thrusting the agencies into further disarray amid state and federal investigations.

The executive committees of CareerSource Pinellas and CareerSource Tampa in Hillsborough, both of which Peachey served as president and CEO, voted to remove him last week over allegations that the agencies have inflated their job placement numbers in reports to the state. But members of both committees have invoked a rule to require a vote by the full board of each agency to decide Peachey’s fate.

In Pinellas board member Lenne’ Nicklaus has sought the vote by the full board. In Hillsborough, County Commissioner Sandra Murman made a similar request.

The Pinellas board is set to meet March 21 and Hillsborough is set to meet March 22.

“I feel that if we’re getting sued, I want the whole board to be a part of that,” Nicklaus said Monday. “I don’t want it to be just the executive board making that decision.”

Murman, in Hillsborough, was disappointed her fellow executive committee members voted to give Peachey severance despite the allegations swirling around the agency. She too felt like the decision should go up for a wider vote.

“It needs to go to the full board so everyone is held accountable,” said Murman, who still supports Peachey’s firing.

Pinellas board chair Jack Geller said he respected Nicklaus’ decision to seek a full board vote but was in “total shock” because she supported the firing last week

“She voted for it at the meeting,” Geller said.

Peachey now is still on paid leave in Pinellas and on unpaid leave in Hillsborough until a final decision is made. He had been suspended by both boards before the committees voted to fire him.

Nicklaus said she has not spoken to Peachey but would like to hear from him, not his attorney, about numerous allegations of mismanagement and what a state inspector general has called possible criminal activity.

“I think he should speak to the board and address some of the issues and explain it because we have not heard from him,” Nicklaus said. She said she still stands by voting to fire him.

Last week, another Pinellas board member, Kim Marston, exercised a similar option to void the executive committee’s decision to give Peachey up to five months pay in a settlement in Pinellas. The Hillsborough board also voted for a similar severance package.

The Florida Department of Economic Opportunity is reviewing whether Peachy would be subject to a state law that limits public employees to six weeks of severance.

Both agencies receive millions in tax dollars each year to train and connect people to work. Last month, the Tampa Bay Times reported that the jobs centers took credit for finding work for thousands of people who did not seek help from the centers.

Current and former employees have said Peachey also had a romantic relationship with a top administrator, Haley Loeun, whose pay rose dramatically as three of her relatives joined the agencies. Louen was fired two weeks ago.

The state DEO launched an investigation in January when the Times asked questions about CareerSource hiring figures. The U.S. Department of Labor and the Florida Department of Law Enforcement have since joined the inquiry.

Amid CareerSource controversy, allegations of a love affair, big raises and family favoritism at the top

Mark Puente

Zachary T. SampsonTimes staff writer

Published: February 16, 2018

Updated: February 16, 2018 at 02:34 PM

The anonymous letter described a possible love affair at the top of the local jobs center.

President and CEO Edward Peachey was in a romantic relationship with top administrator Haley Loeun, it said.

It described how Loeun was seen at a conference coming out of Peachey’s hotel room at 2:30 a.m, and how they often acted like a couple inside the office — drinking out of the same soda cans and “touching … in front of staff.”

The three-page letter also outlined issues with other staffers and the condition of the building.

“We are just asking for HELP!!!” stated the letter, which arrived at a county commissioner’s office earlier this month. “There needs to be more oversight.”

Peachey would not talk about the relationship. Loeun, the business services director, denied to the Tampa Bay Times that they were romantically involved.

“I have a professional relationship with him and consider him a close friend; he is respected by me and numerous other employees,” she wrote in an email.

What’s not in question is that Peachey has signed off on four substantial raises for Loeun in four years, as she rose to the highest levels of CareerSource Pinellas and CareerSource Tampa Bay, payroll records show. Her salary ballooned from $47,554 in 2013 to $130,000 last year, making her the agencies’ second highest paid administrator, behind only Peachey.

Also not in dispute: Peachey approved the hiring of three of Loeun’s relatives since 2014. Loeun even gave one of them a performance evaluation.

Peachey told the Times that all hires go “through the same process.”

“I approved the hiring of everyone,” he said. “But I do not conduct the interviews, and I do not make the decisions.”

The two job centers already face local, state and federal investigations into whether they exaggerated reports of how many people they helped find jobs. Now, Peachey and Loeun’s close ties, and the hiring of her relatives, have agency board members questioning whether the two leaders have unfairly rewarded people based on personal connections.

Sandy Murman, the Hillsborough County commissioner and agency board member who received the letter, said that kind of behavior would be “totally improper in the workplace.” Murman found the letter to be credible, even though it was anonymous.

“For me a huge issue is that if other employees are watching this going on, what are they thinking?” she said.

• • •

Peachey, 54, has led the Pinellas County jobs center since 2003 and took over the Hillsborough County agency in 2010, tasked with cleaning it up after a spending scandal. The agencies are two of the state’s 24 CareerSource programs, which receive millions in tax dollars each year to help train and place people in jobs.

Loeun, 41, joined the Pinellas career center in 2004, according to her personnel file. The year before she had graduated from Troy State University with a degree in business administration. Loeun was a recruiter for several years, connecting job seekers to employers, and later became a program coordinator.

In 2013, Peachey approved her promotion to director of economic services and increased her pay from $47,554 to $80,000.

The next year, he signed off on another raise from $80,000 to $95,000, the personnel file shows.

In June 2016, he bumped her salary to $110,000.

Last year, HR director Alice Cobb recommended in a letter to Peachey that Loeun’s base pay be bumped to $130,000, saying Loeun had consolidated the business services staff at the agencies in Pinellas and Hillsborough counties, increasing her job responsibilities.

After bonuses and cashing in paid time off, Loeun grossed $179,822 in 2017, according to the payroll records.

In recent years, Peachey has repeatedly given her positive performance reviews.

In a letter offering her a raise, he wrote that she had “consistently exceeded expectations” and praised her for “diligence and dedication.”

Loeun “has a knack for making good business decisions,” according to a review signed by Peachey in December 2016, and “is a great team builder.”

• • •

In her time at the center, Loeun said, she and Peachey have become close but not romantic.

More than a dozen staffers said Peachey and Loeun are always together and are often seen coming and going from the office.

Geoff Newton, a recruiter who left the agency in 2017, said Loeun and Peachey’s romantic relationship “was no secret.”

“We were all aware of it,” he said.

Three of Peachey’s St. Petersburg neighbors told the Times that Loeun was frequently at Peachey’s home. They said they often see Peachey and Loeun in the yard with a dog and two children. Loeun is a mother of two from a previous marriage, according to court records. One neighbor identified her by name.

In 2015, Loeun went through a divorce. Her ex-husband told the Times he has long suspected she left him for Peachey.

“What more can I say?” said David Loeun. “They’re still together.”

• • •

As Loeun rose to the top, three of her relatives got jobs at CareerSource.

Voter records and the CareerSource payroll connect Loeun and her three relatives — Earl Alcover, Huey Nguyen, and Howard Nguyen — to the same address on Merrimoor Boulevard in Seminole. It’s also the same address Loeun listed in her 2015 divorce case.

The anonymous letter sent to Murman described Alcover as Loeun’s brother-in-law. Current and former CareerSource employees described Huey Nguyen as Loeun’s sister and Howard Nguyen as her brother. Loeun, however, would not confirm exactly how she is related to them.

Alcover was hired in 2014 as a resource specialist. Peachey wrote him an offer letter dated the same day as his application. Loeun later promoted him to business services recruiter, according to an email in his personnel file.

Alcover’s wife is Hieu Nguyen, according to his job application. She lists her address in voter records as the same Merrimoor Boulevard home in Seminole that Loeun lists as her address in CareerSource payroll records.

Alcover, 30, earned $56,250 last year, the payroll records show. He previously worked as an assembler at a medical technology company in Largo until 2013, according to the application. Before working at CareerSource, he was a busser and server assistant at Olive Garden. The resume included with his application listed an associate of arts degree from St. Petersburg College, but a spokeswoman for the school says he never graduated.

In 2015, Huey Nguyen, 45, joined the agency. She is now the coordinator of YouthBuild, a CareerSource program to help at-risk teens learn the construction trade. She earned $69,300 last year, records show. She declined to comment when reached at her office.

Nguyen did not fill out a line in her job application about whether she had relatives at CareerSource.

Last May, Howard Nguyen, 28, started working at CareerSource as an intern. He was later hired as an IT specialist and earned $20,195 working part of the year, records show.

In a brief phone call with a Times reporter, Howard Nguyen confirmed that Loeun, Huey Nguyen and Alcover were his relatives. He then hung up, saying he could not talk to a reporter. On his application, he checked “no” for the question about whether he had relatives who worked for CareerSource.

More than a dozen current and former employees have called or emailed the Times complaining about how the agency hired Loeun’s relatives.

The anonymous letter sent to the Hillsborough commissioner stated that Loeun’s relatives had “almost taken over” CareerSource.

• • •

Loeun isn’t the only one with relatives in the CareerSource offices.

Lindsey Cobb, 35, the daughter of human resource director Alice Cobb, joined the agency in 2015. She is now a placement specialist, earning $49,681 in 2017, up $10,000 from the year before, according to CareerSource records. She previously worked as an administrative assistant at the Florida Reptile Room, according to her job application.

The women list adjacent Plant City address on payroll records. Lindsey Cobb described Alice Cobb as her mother in her application and listed her as an emergency contact. Neither responded to requests for comment.

The elder Cobb joined the local CareerSource offices after she was ousted as the chief operating officer at the job placements center in Orlando amid a spending scandal.

The CareerSource employee manual is open-ended about family ties in the office.

“Relatives of employees and non-related members of the same household will be considered for employment on an equal basis with other applicants for those positions where neither relative would be directly or indirectly supervising or checking the work of the other,” the policy states.

Ultimately, according to the manual,the president and CEO should review any promotions, transfers and hiring offers to people with relatives in the office or who live with someone from the agency.

Board members who oversee the two local CareerSource agencies said they were concerned about the family ties.

Several told the Times they did not know about Peachey and Loeun’s close relationship, or that CareerSource had hired three of Loeun’s relatives.

“It is under investigation,” CareerSource Pinellas chairman Jack Geller said about the family ties. “The appropriate action will be taken when it’s decided.”

Pinellas County Commissioner and former CareerSource board member Ken Welch said the relationship “fits into a pattern of unacceptable behavior.”

“Whether they have a written policy or not, it brings up obvious questions of conflict of interest, and to me it merits further investigation,” he said.

Murman, the Hillsborough commissioner, said CareerSource should have strict anti-nepotism policies and was especially bothered by the family connections.

“That’s just not appropriate,” she said. “That could lead to all kinds of issues of credibility and fraud — who knows?”

Times senior researcher Caryn Baird contributed to this report. Contact Zachary T. Sampson at zsampson@tampabay.com or (727) 893-8804. Contact Mark Puente at mpuente@tampabay.com or (727) 892-2996.

Editor’s notebook: Returning mentors passionate about connecting, getting insight

By Alexis Muellner  – Editor, Tampa Bay Business Journal

Feb 16, 2018, 3:00am

I spent the bulk of our annual Mentoring Monday event talking to participants to learn what the event meant to them. I went searching for common themes that could be useful to readers and especially leaders looking to help their teams be successful, retain strong people and help women grow their careers.

Hillsborough County Commissioner Sandy Murman has been at all five local Mentoring Monday events and believes it’s her responsibility to reach out and help women she meets become successful. To help, she taps her own relationships.

“I connect them to help them get the job they are dreaming about,” she said, saying at each event she experiences consistent post-event follow-up with four to five women, opening doors to real opportunities.

This was the fourth year for New Market Partners CEO Joy Randels. Like Murman, she gets satisfaction from making a connection after the event with at least one woman to someone in the business community who can help them professionally.

“You have to learn to live vicariously through the success of others,” she said. “Once you become a manager of people and you are not the one just living on the front lines, it cannot be about you anymore.”

Mentor, author and speaker Debbie Lundberg utilizes the event to learn what the job force is missing.

“I remember that from last year that many of the women I talked to all have these skills that they could not necessarily market,” she said. To find the skills they can sell, she asks mentees, what are they most proud of? “They need to utilize skills they have, No.1, as a confidence builder, and No. 2, learn how to position those skills and third, know how to bring it all together.”

USF Health’s Director of Community Relations Joanne Sullivan is a returning mentor and sees her role as helping women get excited about goals, and to be a good listener.

EDUCATION

“The best advice I got from a mentor was to stop talking so much,” she said. “It’s not about you, it’s about them and it’s amazing what happens to you when you stop thinking about yourself.”

For Polk State College’s CIO and VP of Strategic Innovation Naomi Boyer, there isn’t a mentee that she works with who isn’t also a mentor to her. “I work alongside with them and then I have the chance to communicate and relate to them so it’s a learning process.”

Alexandra McKeever, business development representative at Datavision, was a mentee this year. Because she’s new to the IT world, she sought advice on building the right relationships.

“I’m looking to know the best way to make connections and see which ones made [the mentors] successful and what they might change if they could do it all again.”

For Conversa Managing Partner Arlene DiBenigno, the event is all about giving back.

“We have a responsibility. To whom much is given, much is expected,” she said.

Editorial: Ousted CareerSource leader does not deserve severance

Published: February 28, 2018

Updated: February 28, 2018 at 06:04 PM

The CEO of CareerSource Pinellas and CareerSource Tampa Bay deserved to be fired for practices that sparked multiple investigations and destroyed public trust in the job placement agencies. Yet the CareerSource board members also foolishly decided Edward Peachey is entitled to five months of severance pay. Firing Peachey while awarding him a generous parting gift fails to recognize the jeopardy he has put these public agencies in and the erosion of public trust in their mission.

Peachey was at the helm for years as the agencies reported placing people in jobs who never sought CareerSource help. A Tampa Bay Times investigation found that CareerSource asked local companies for the names of all their new hires — not just CareerSource clients — and took credit for “matching” those people in jobs. Those inflated figures have sparked investigations by local, state and federal agencies that award CareerSource millions of public dollars to help people find jobs.

In addition, the Times found that Peachey promoted a woman with whom he appeared to have a close personal relationship and signed off on hiring three of her relatives. Pinellas Sheriff Bob Gualtieri has accused CareerSource of forging his signature on documents and reporting placing people in Sheriff’s Office jobs that don’t exist.

So there was plenty of justification for the CareerSource Tampa Bay board in Hillsborough to cut ties with Peachey when it met Monday, followed by the Pinellas board on Wednesday. But it was dumbfounding when a majority of members on both boards voted to pay Peachey five months of his roughly $290,000 annual salary if he agreed not to sue. The board members argued, unconvincingly, that severance was appropriate because the investigations have not proven Peachey did anything wrong. If the boards are so concerned about being fair to Peachey, why not at least wait until the investigations are complete before deciding to write him a check?

Credit Hillsborough County Commissioner Sandra Murman at CareerSource Tampa Bay, Pinellas Commission chair Ken Welch and CareerSource Pinellas board chair Jack Geller for opposing the severance payments. Said Geller, “Mr. Peachey’s actions created a toxic workplace and low morale.” It’s also instructive that Peachey’s attorney, Marion Hale, has portrayed her client as the victim of a “vendetta” and a “witch hunt,” chalked up the faulty placement figures to a coding error, criticized the Times’ reporting and filed multiple public records requests for unrelated information regarding Welch. Screaming foul and attacking is a familiar strategy when the facts are not favorable to your side.

Taxpayers may yet get a reprieve if the state Department of Economic Opportunity determines Peachey is a public employee and entitled to a maximum of only six weeks severance pay, voiding the boards’ decisions. Even so, that would not restore public trust in the board members who failed to provide adequate oversight of Peachey’s management and then provided him an awfully soft landing when they finally shoved him out.

Random drug testing, better mental health services sought for first responders after Times investigation

Steve Contorno

Published: February 28, 2018

Updated: February 28, 2018 at 07:47 AM

TAMPA — Hillsborough County commissioners want a full review of the mental health services available to first responders after the Tampa Bay Times discovered a history of drug and alcohol abuse in the fire rescue department.

Commissioners also said they support Fire Rescue Chief Dennis Jones’ push for stricter drug testing in ongoing contract negotiations with the fire union.

“There’s an expectation that we see those policies strengthened,” Commissioner Stacy White said.

Calling the Times’ report “surprising” and “tragic,” Commissioner Sandy Murman suggested that the county expand mental health programs for first responders. The county could pay any additional costs with a local tax meant for indigent care, Murman said.

She expects the Hillsborough health care advisory board to take up the issue immediately.

“Our goal is to keep residents safe, and these are the key people that we need for public safety. We need to help these guys,” Murman said. “Let’s start from scratch and build this up.”

A six-month investigation by the Times, published last week, uncovered dozens of drug- and alcohol-related incidents among county fire rescue workers since 2010. In 2016, an off-duty fire medic died of a drug overdose, and another overdosed while at work. One employee stole morphine from an ambulance and replaced it with saline; police found materials to evade a drug test, including powdered urine, in the home of a firefighter investigated in the death of his son.

About 20 employees failed a drug test or were arrested for drunken driving.

Job-related stress was often a factor, according to interviews with former employees and family, investigations and medical and discipline records. Experts said post-traumatic stress among first responders is as high as veterans returning from combat.

The Times also found that Hillsborough’s drug testing policies lag behind departments of a similar size across the state.

Hillsborough County Fire Rescue has roughly 1,200 employees in 43 stations servicing the county’s unincorporated communities.

Most large departments drug test employees randomly throughout the year. Hillsborough, the third-largest department in Florida, does not. Instead, up to half the department is tested twice a year, always in January or July.

In many other departments, an accident involving a first responder can trigger a drug test. That’s not the case in Hillsborough, which had at least 20 vehicle accidents since 2011.

“I was taken aback that there wasn’t random drug testing of firefighters,” Commissioner Pat Kemp said. “It seems important. It seems like a best practice.”

The county and its union representation, the International Association of Fire Fighters Local 2294, tentatively agreed to a new contract that would for the first time explicitly ban the use of illegal drugs outside work hours. It also would initiate random drug testing — five employees, every other week.

Union members still need to vote on the contract, and they so far have not set a time to do so. If it is approved, the county commission will vote on the contract; if rejected, the two sides go back to the bargaining table.

Union President Derrik Ryan did not respond to multiple requests for comment throughout the reporting of the Times investigation.

On Monday, the union executive board released a statement saying it “does not condone or promote the use of illegal drugs, the abuse of prescription drugs or any substance abuse in any manner or form” and criticized the Times report as sensational.

The existing contract does not include testing for alcohol, a change first added in 2014. The county commission approved that contract, but now some commissioners say that should be reviewed.

“For someone who is a first responder, I think that would important,” said Commissioner Al Higginbotham.

Higginbotham said he thinks the department’s issues are isolated to “a small group of people” and date back to previous chiefs and former union representation. He is optimistic that the rank-and-file will approve of the new direction laid out by Jones.

“I would think they would look at not only themselves but society in general and say we have issues that we need to address,” he said, “and they will make the responsible, compassionate decision to help fellow union members, as they’re helping people in need of first responders who are sharp on the job.”

Contact Steve Contorno at scontorno@tampabay.com or (813) 226-3433. Follow @scontorno.

CareerSource Tampa Bay votes to fire CEO Edward Peachey

Mark Puente

Zachary T. Sampson Times staff writer

Published: February 26, 2018

Updated: February 26, 2018 at 08:55 PM

TAMPA — The man tasked for years with helping Tampa Bay residents find work lost one of his own jobs on Monday.

Board members of CareerSource Tampa Bay voted 6-1 on Monday to fire president and CEO Edward Peachey as they grapple with multiple investigations into whether the agency inflated its hiring numbers to the state.

Sister agency CareerSource Pinellas, which Peachey also ran, will consider taking the same action on Wednesday.

The executive committee vote by CareerSource Tampa Bay, which serves Hillsborough County, allows Peachey to collect severance pay for five months if he agrees not to sue the agency. He will also receive back pay for the past three weeks that he has been on unpaid suspension.

Board members said it was fair to offer Peachey the parachute since it so far has not been shown he has done anything wrong, while acknowledging that keeping him on would be a distraction.

But Hillsborough Commissioner Sandy Murman — the lone no vote — said Peachey doesn’t deserve severance while state and federal investigations into the agencies are ongoing. She urged committee members to consider the seriousness of the allegations hovering over both centers.

“Honestly, today, how can you approve severance?” Murman said after the vote. “There could be fraudulent acts. It was totally improper.”

Any severance money would come from private donations and fees the agencies charges companies to sponsor job fairs, officials said.

The CareerSource agencies receive millions in tax dollars each year to help people find jobs, working with companies to place them. Earlier this month, the Tampa Bay Times reported that both centers have taken credit for finding jobs for thousands of people who had not sought their assistance.

The state Department of Economic Opportunity launched an investigation last month when the Times started asking questions about the hiring figures. The U.S. Department of Labor and Florida Department of Law Enforcement have since initiated their own investigations.

Before Monday’s committee vote, Peachey’s attorney, Marion Hale, told board members the move to fire her client was “outrageous.”

She said that the state DEO, which receives job placement figures from the state’s 24 CareerSource centers, has not previously taken any issue with how the local offices report their figures. She dismissed any problems as “coding issues” that don’t involve Peachey.

The committee, she said, was only acting in response to “lies,” “gossip” and “rumors” spread by the media.

“You know the stories are false,” Hale said. “Mr. Peachey served admirably for years.”

Board member John Kearney, an executive with Advanced Training Systems, keyed in on that line of argument in pushing for Peachey’s dismissal, but with severance.

“I hope that nobody else in this room is attacked by the media,” he said. “It can go on and on.”

Earlier Monday, the DEO inspector general sent a letter in response to a request for guidance from the Hillsborough and Pinellas CareerSource boards. It underscored how seriously the state is taking the allegations.

It highlighted how the agencies have taken credit for placing people in jobs based on hiring lists they got from employers that included people not referred to them by CareerSource.

“It appears that many of these individuals were not seeking employment — they had found employment,” wrote James E. Landsberg, inspector general for the DEO. “It also appears that the employers were not considering whether to hire many of the individuals — the employers had already hired them.”

In the letter, Landsberg said the department reviewed the allegations being reported and sent the information to law enforcement because it “raised reasonable suspicion of criminal activity.”

The letter also urged the local CareerSource agencies not to now alter records in a statewide network as the criminal investigation continues. It says any altering of records is “not permissible until further notice.”

CareerSource attorney Charles Harris said the DEO letter “raises doubts” that the centers could take any credit for placements from hiring lists. But he said he was not absolutely sure.

Harris said Peachey, who took home $288,865 in 2017 in salary and benefits, is paid by CareerSource Pinellas but the Hillsborough board reimburses half of his total salary through a shared services agreement. He said the two centers cannot find a “fully executed copy” of that agreement.

Peachey, 54, has led the Pinellas center since 2003. He took over the Hillsborough agency in 2010 after a spending scandal forced out the former leader.

After the meeting, Hillsborough board chair Dick Peck said he has no problem paying Peachey a severance. Asked what he would tell jobseekers across the county, Peck replied, “Come on down to any CareerSource (office). We have great opportunities.”

Moments later, Peck told reporters that he had changed the locks on Peachey’s office and that Peachey had left. Peachey then emerged from a closed office.

“You got to leave, bud,” Peck told Peachey. “I need the key.”

Peachey did not respond and went into another office.

Embattled CareerSource Tampa Bay CEO is out in Hillsborough

NOLA LALEYE

Feb 26, 2018, 4:30pm

The executive committee of the workforce board of Hillsborough County voted 6 to 1 on Monday to fire Ed Peachey, news outlets reported.

Peachey will leave his post as numerous investigations continue into how the agency reported job placement numbers. Peachey also has been CEO of CareerSource Pinellas and its board is slated to consider a similar action Wednesday.

Peachey’s continued affiliation with the agencies was proving to be a distraction, board members said in a Tampa Bay Times report.

Peachey is slated to receive five months’ severance and will be paid $125 an hour while he cooperates with federal investigations, the report said. Hillsborough Commissioner Sandy Murman cast the lone dissenting vote, expressing a concern over the severance package.

In a WFLA report, the board’s lawyer said there was risk to deny Peachy severance, even if the board fires him “with cause.”

Peachey’s attorney sent CareerSource board members a letter Friday saying Peachey had been bullied by the press and public officials.

“Mr. Peachey has withstood this assault on his reputation without lashing out at those who have falsely accused him, but the time for silence has ended,” Johnson Pope attorney Marion Hale wrote to the committee Friday. “He has done nothing wrong.”

CareerSource Tampa Bay, Pinellas CEO fired

By: Catherine Hawley, FOX 13 News

POSTED: FEB 26 2018 10:17PM EST

VIDEO POSTED: FEB 26 2018 10:24PM EST

UPDATED: FEB 26 2018 10:25PM EST

TAMPA (FOX 13) – A damaged reputation and loss of community trust.  Those are just some of the reasons the embattled CEO of CareerSource Tampa Bay, Ed Peachey, was fired Monday.

Since last month, Peachey has been at the center of federal, state and local investigations.  The head of CareerSource Tampa Bay and CareerSource Pinellas is accused of cooking the books, inflating the number of people the agency has helped get jobs.

Monday, it was his job that was on the line.

“Nobody has alleged that anybody lined their pockets, that anybody misspent any money whatsoever,” said Marion Hale, Peachey’s Attorney.  “And yet this man stands waiting to be stripped of his livelihood and his career.”

So far, there’s no proof that Peachey broke any laws.  However, Monday the Department of Economic Opportunity sent a letter saying there is “reasonable suspicion of potential criminal activity.”

Something Hillsborough County Commissioner, Sandy Murman says is very serious.

“There’s a couple of words in there that stick out if you read it, criminal activity, fraudulent activity, different things,” she said.

Just last week, CareerSource fired their Tampa Bay Business Manager after receiving anonymous allegations the she was romantically involved with Peachey, he had hired several of her relatives, and Peachey signed off on raises for the top administrator.

The CareerSource Tampa Bay Executive Committee called Monday’s emergency meeting to discuss terms of Peachey’s departure.  In the end, board members agreed Peachey had to go for the sake of the organization, regardless if they think the allegations are true or not.

“I think that it’s clear for everybody in this room that Mr. Peachey needs to be terminated because he was the CEO,” Betsy Irizarry said.  “There is a perception and we need to move forward.”

After two failed motions, the board voted 6-1 to fire Peachey.  He will also receive back-pay for the time he’s been suspended without a paycheck, and will get five-months of severance pay.

Murman was the only member to vote against firing Peachey, because she had concerns about paying him severance.

“Just want ya’ll to know how serious this action is to give severance before we know finally what the outcomes of the investigations are,” the Executive Committee Vice Chair said.

Peachey also faces losing his position as President and CEO of the Pinellas CareerSource location.  Board members are set to make a decision at their meeting on Wednesday.

CareerSource CEO Ed Peachey voted out

By Dave Jordan and Spectrum Bay News 9 Digital Team,
Last Updated: Monday, February 26, 2018, 9:15 PM EST

TAMPA — Beleaguered CareerSource Tampa Bay and CareerSource Pinellas CEO Ed Peachey was voted out of his position by the board of the organization on Feb. 26, 2018 by a 6-1 vote.

Peachy was first suspended without pay by CareerSource Tampa Bay on Feb. 2 during an investigation into the agency possibly reporting more people placed into new jobs than it actually had.

Members of the CareerSource Pinellas Board voted to form a committee to investigate the matter days later.

On Feb. 21, members of the Hillsborough County Commission voted to demand Peachey resign or face being fired. However, the commission did not have the power to actually fire Peachey.

That power lay with CareerSource Tampa Bay’s board members, who voted to terminate Peachey without cause on Monday. Peachey will be provided a 5-month severance package, but the funds will not come from taxpayer dollars, according to the organization.

Hillsborough County Commission chair Sandy Murman was the only commissioner to vote against the measure. Her objection stemmed from Peachey receiving a severance package.

“How could you approve severance when there could be fraudulent activity?” asked Murman. “It’s just not right.”

Under the terms of the separation agreement, Peachey received six months of severance and back pay dating up to Feb. 25.  Both he and his attorney declined to comment.

Looking forward, both county commissions are looking at completely revamping the power structures of CareerSource Pinellas and CareerSource Tampa Bay once the investigation is concluded.