Lawsuit alleges Wendy's franchisee spent $1 million of PPP funding to finance home

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Lawsuit alleges Wendy's franchisee spent $1 million of PPP funding to finance home
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A former employee of Starboard Group, a large Wendy's operator, alleges that the franchisee's chief executive diverted $1 million in Paycheck Protection Program loans to finance his home in Montana.

According to Adler's suit, Starboard CEO Andrew Levy told her to list some of his personal employees in Montana as corporate employees.

"The effect of this, in view of the PPP funding, was to defraud the United States and the Small Business Administration," the complaint said. Levy also allegedly ordered her to lie to creditors, vendors, suppliers and landlords and tell them Starboard couldn't meet its financial commitments because it had not received PPP loans.

Adler's superior Kevin Holbrook fired her on June 1 after she complained to him about Levy's orders and practices, according to the suit. The complaint also alleges that Holbrook sexually harassed Adler while she was an employee and Levy ignored her complaints about the behavior.Wendy's did not immediately respond to a request for comment, and Starboard could not be reached for comment.

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