LOUISVILLE, Ky. — TARC is suing its former executive director for more than $750,000, accusing him of fraud, malice and corruption during his tenure with the public transit company.
In a lawsuit filed Monday in Jefferson Circuit Court, TARC said Ferdinand Risco Jr. "regularly sexually harassed" several employees, most of whom were single Black mothers that were financially dependent on TARC.
The suit references three victims who reported harassment in January 2020. Risco resigned in February after the allegations surfaced.
The first victim reported that Risco began harassing her in December 2017. The woman said that Risco asked her to be his "f*** buddy" and conditioned a promotion on the request. When she was invited to his apartment after hours, she said Risco exposed himself to her.
TARC later paid out a settlement to the woman for $120,000, the lawsuit says.
A second victim said Risco created a hostile work environment, both sexually and racially harassing her. The victim said Risco belittled her by making comments about her darker skin tone and regularly referred to sexual matters in front of her. She left TARC as a result of the harassment and was eventually paid $160,000 in a settlement.
The lawsuit also accuses Risco of sexually harassing and assaulting a third woman in September 2019. The woman, the lawsuit says, was groomed by a contractor in a consensual relationship with Risco to be more attractive to him. TARC later paid her $250,000 in a settlement.
In addition to sexual misconduct allegations, TARC also alleges Risco used his role to hire a contractor, through a no-bid contract, with whom he had a consensual sexual relationship.
The lawsuit says Risco violated TARC's policies to hire the contractor, who the lawsuit claims was already under investigation for financial impropriety when she was hired.
"The contractor performed little to no services on behalf of TARC but Risco arranged to have the contractor paid more than $228,000 during a one-year period," the lawsuit says.
Risco is also accused of misrepresenting the contractor's skills to obtain an additional $336,000 contract for her in October 2019.
After leaving his position on Feb. 12, TARC said Risco refused to cooperate with TARC and "hired legal counsel who advised that Risco had 'put the matter behind him.'"
TARC is suing for the amount of money it cost to settle with Risco's alleged victims, as well as the money spent on the contract for a woman with whom Risco had a sexual relationship. In total, TARC said Risco owes about $778,000 in damages.
TARC's Co-Executive Directors released the following statement:
Since we came to TARC, one of the primary focuses we and the Board had was to address the trauma caused by Ferdinand Risco. When these victims came forward at the end of January 2020, they exposed Risco's wrongs and helped the Board and the City end his tenure at TARC and his presence in our community. The settlements with these sexual harassment victims were reached quickly, but represent months of work and the firm desire that these women, victimized by Risco, not be put through a lengthy litigation process. They and their families should be allowed to heal and not be victimized again. We have made an unyielding commitment to them to protect their privacy. We will not discuss the specifics of their cases.
We can say that the claims these sexual harassment victims raised against Risco were very serious and damaging. Risco's actions do not represent TARC's 46-year history with this community. Together with the Board, we have made significant changes to our organizational structure, our reporting mechanisms, and the access our employees have to report abuses. We have also hired subject matter experts in the field of harassment and abuse prevention. We have taken significant steps to ensure that something like Risco's harassment will never happen again. But that doesn't make the harm caused by Risco any less real.
TARC will aggressively pursue Ferdinand Risco for his conduct. We will not comment further on the matter as it regards pending litigation but expect additional announcements in the near future.
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