Hudlow: Firing Followed Questions About Travel Expenses

The former treasurer and chief financial officer for the city of Rogers now contends he was fired after raising concerns about the travel expenses of city employees, namely Rogers city attorney Ben Lipscomb.

Jerry Hudlow, who was fired in May, is suing the city of Rogers and mayor Greg Hines for wrongful termination. The original complaint was filed Aug. 1.

Lipscomb filed a motion on behalf of the city on Aug. 22 to dismiss the lawsuit — claiming Hudlow was an at-will employee — but U.S. District judge Jimm Larry Hendren denied that last month.

Hudlow’s attorney, Stephen Wood of Rogers, filed an amended complaint Tuesday in the U.S. District Court for the Western District of Arkansas in Fayetteville. It claims Hudlow’s termination also violated whistleblower protections under Arkansas law.

The Whistle-Blower Protection Act states that a state agency or institution shall not take adverse action against an employee because the employee, or a person authorized to act on behalf of the employee, communicates in good faith the existence of waste of public funds, property or manpower.

According to the amended complaint, Hines sent an email to Hudlow and Lipscomb on Nov. 8, 2011, announcing his policy that “if the Rogers City Council appropriates dollars in the line item for travel and training of an elected official’s budget, that official has the authority to spend said dollars at their discretion.”

The email was sent to settle a disagreement between Hudlow and Lipscomb as to whether Lipscomb needed to justify and document travel and training expenses.

Hudlow’s position, according to the complaint, was that city officials and employees, such as Lipscomb, needed to justify and document their travel and training expenses.

On Feb. 1, Hudlow and Hines exchanged emails about Hudlow’s concern that city officials were requesting travel money without supporting documentation.

Hudlow, according to the complaint, was concerned that auditors would “[chew] us up alive” over the practice of disbursing travel money without evidence of expenses such as hotel reservations and training registrations.

Hines’ response was that he would not “change the system that has been in place,” according to the complaint. It is further alleged in the complaint that Hudlow was concerned city officials and employees were using public funds to front expenses for personal trips or activities.

Hudlow met with an attorney from the Arkansas Municipal League, according to the complaint, about Lipscomb’s spending habits, failure to produce documentation for his expenses, and publicly confronting Hudlow about Hudlow’s inquiries.

Hudlow was advised to suggest to the auditors that they review the Continuing Education account for Lipscomb’s office.

On May 14, Hudlow was summoned to Hines’ office about 8 a.m. and told he had the option of resigning or being fired.

Hudlow was appointed city treasurer by then-mayor Steve Womack in August 2002. According to a Personnel Action Report released by Hines, Hudlow was fired for a variety of reasons.

Among them were insubordination, intimidation, disrespect, lack of decorum, failure in ethics, violation of state statute and lying, bullying and information fabrication.

No trial date has been set.

Neither side could be reached Wednesday for comment.