RICHMOND, Va. — A Virginia ABC employee has filed a lawsuit against the agency alleging she endured retaliation and defamation for reporting millions of dollars in inventory was missing.
In the complaint filed on Dec. 13, Jennifer Burke, Virginia ABC director of retail operations, claims she suffered "severe damage to her reputation and emotional distress" from the "hostile work environment" created by her superiors after she participated in whistleblowing activities.
The alleged retaliation is linked back to incidents beginning in February 2022 when the then-CEO of Virginia ABC Travis Hill temporarily directed Burke to the warehouse, where she and her team were expected to organize the "immense inventory" ahead of its move to a new location, according to the lawsuit.
While preparing for the warehouse's move, Burke and her team discovered there was inventory amounting to more than $2 million missing from the warehouse, along with improper payments made to third-party vendors, the lawsuit claims.
The lawsuit said when Burke reported the losses and the mismanagement of her supervisor, Mark Dunham of Virginia ABC's Chief Retail Operations Office, to Hill and Dunham, Virginia ABC purportedly "engaged in a cover-up" rather than report it to the Virginia ABC Board of Directors.
Amid the alleged cover-up, Dave Alfano was hired as the new chief administrative officer, which required his involvement in audits of the agency that Burke claims should have revealed the losses.
"Before and during the investigation and cover-up, Virginia ABC regularly reported to the Commonwealth and the public that its inventory was financially accurate and relatively in line with its goals. Virginia ABC’s reports regarding its inventory were knowingly and recklessly false, because of Hill and Dunham’s concealment," the suit states.
This led Burke to report the incident to Tim Hugo, the chairman of the Virginia Alcoholic Beverage Control Authority Board, and Eric Moeller, Gov. Glenn Youngkin's chief transformation officer.
Court documents state Hill and Dunham knew Burke engaged in whistleblowing activities before accusing her of "wrongdoing" on a conference call with retail leadership and support members and subsequently placing her on administrative leave in May 2023 for several months.
When Burke returned to Virginia ABC in July 2023, her responsibilities were minimized which the lawsuit claims "diminished chances for advancement and professional development."
The lawsuit seeks compensatory damages of up to $1 million.
