PORTSMOUTH, N.H.–An alleged affair between the former CEO of Service Credit Union here has led to two lawsuits against the CU, in addition to one filed by the CEO himself and a countersuit from the credit union.
Gordon Simmons, who was CEO of Service Credit Union for 21 years, resigned in January of 2016 after admitting to a sexual relationship with his administrative assistant, according to the Manchester Union Leader. “The credit union claims Simmons initially lied when confronted about the relationship, but he eventually admitted to the affair, to taking her on a business trip and to secretly paying her $38,000 in relocation expenses,” the Union Leader reported.
Simmons, however, has countered that the affair occurred after the administrative assistant had left her job at the credit union.
But that has now led to two legal claims against the credit union, one from the former administrative assistant, the other from an SCU employee who alleges she was fired after she questioned the existence of the relationship. The Union Leader did not provide details of the filings of the new lawsuits.
“Mr. Simmons’ actions, manipulations, and misrepresentations in personnel matters, financial matters, and the management of SCU were in violation of his obligations and responsibilities as CEO and as a board member,” the credit union said in its court filings.
The Union Leader said that in his initial lawsuit Simmons makes no mention of an affair. In subsequent pleadings, he admits to the relationship, but denies that he started it, according to the publication.
“Mr. Simmons was the target of an SCU employee’s intentional efforts to manipulate him,” Simmons’ lawyer said in a statement to the Union Leader.
After resigning, Simmons filed suit against Service Credit Union in March 2016, claiming it had not honored a provision in his employment contract to cover healthcare costs for him and his wife once he left his job.
The Simmons suit said he has spent $39,540 so far in medical costs, and the amount will only grow, according to the Union Leader.
The lawsuit states that Simmons earned $1.8 million in salary, bonuses, retirement and other compensation according to 2015 tax filings. The credit union had also provided him with a house in Portsmouth, N.H., the legal documents add, according to the Union Leader.
“Simmons now lives in Riegelsberg, Germany, according to his lawsuit, which names Sieglinde Simmons as a co-plaintiff. The lawsuit does not identify them as husband and wife, but they share the same address in Riegelsberg,” the Union Leader reported.
During his 41-year career at Service CU it grew to $2.79 billion in assets from $282 million. The Union Leader reported that in his filings, Simmons said he met with the credit union’s board in an emergency meeting on Jan. 27, 2016, where he asked to resign so he could retire. “The chairman accepted his request, and he embraced or shook hands with all members,” according to the lawsuit.
But in its response to the suit, SCU claims directors met Simmons on Jan. 19 to discuss “allegations of financial misconduct, a sexual relationship with a direct subordinate, and other violations of SCU policies.”
“Mr. Simmons replied that he was ’shocked’ at the allegations. He expressed outrage that he would be questioned after his lengthy employment with SCU,” the Union Leader quoted the lawsuit as stating. “He admitted to the relationship, but said it started after the woman had left the organization.”