The South Shore Convention and Visitors Authority is asking a federal judge to allow it to countersue its former President and CEO for “fraud and unjust enrichment” almost two years after he sued the board for wrongful termination.
The counterclaim, filed June 20 in the United States District Court for the Northern District of Indiana, Hammond Division, accuses Speros A. Batistatos of selling back unused vacation time as deferred compensation to the tune of $400,000. He did this, the claim alleges, by “Inappropriately report(ing) his time not working for the SSCVA as Floating Holidays or personal days, rather than vacation days.”
“Between 2014 and 2021, Batistatos received over $200,000 from the SSCVA (South Shore Convention and Visitors Authority) in Vacation Day buy-backs that were accrued by his erroneous and deceptive reporting of time off,” the claim reads. “Batistatos was aware that he had not properly earned the benefits he entered (or directed others to enter) on his time records.”
The SSCVA in 2014 passed a resolution that employees could buy back unused vacation days previously given only when the employee left the organization, the claim reads, and as such, Batistatos was eligible to receive a 100% match of unused vacation as deferred compensation. Per his 2016 contract, Batistatos was provided “twenty-five (25) days of vacation prorated annually with pay, with the dates of vacation subject to the approval of the Chairman of the (SSCVA),” which at the time was the late Victor DeMeyer.
“(Batistatos) shall be allowed to accumulate unused vacation days which will ‘rollover’ without limit into the following calendar year(s),” the claim said his contract read. “(He) shall be allowed to cash out unused vacation days on an annual basis for the specific purpose of funding his Variable Annuity Life Insurance Company (VALIC) annuity.
“The above listed cash out for the funding of his VALIC annuity shall not exceed forty five (45) days per calendar year. No other vacation day cash out shall be allowed absent (Batistatos’) severance/termination from the (SSCVA).”
The SSCVA contends, however, that Batistatos “was aware” he didn’t receive permission to roll over his time-off benefits after 2013 and had received proper approval in 2011 and 2013, according to the claim.
The SSCVA is asking for damages “sufficient to address the money that Batistatos wrongfully caused to be diverted to him as a result of his buy-back scheme,” the suit reads.
On June 18th, Senior U.S. District Court Judge Joseph Van Bokkelen filed three motions: one denying the dismissal of Batistatos’s lawsuit and one removing Thomas McDermott in his official capacity as mayor from Batistatos’s lawsuit. McDermott as himself and the City of Hammond will remain on the suit, however. The third motion allows Batistatos to refile his suit against McDermott’s Left of Center Media LLC and Left of Center podcast, court documents said.
Batisatos on Friday deferred comment to his attorneys.
His attorney Sandra L. Blevins, Managing Partner of Betz and Blevins, clarified that the SSCVA is seeking permission to file the counterclaim, but the court has not yet allowed it to go forward.
“Mr. Batistatos vigorously denies all allegations made by SSCVA in the counterclaim and will vigorously seek to have the Court deny SSCVA’s motion to file the counterclaim against him,” Blevins said in a statement. “Mr. Batistatos’ compensation was approved on an annual basis by the Board of Directors of SSCVA. Mr. Batistatos was never paid anything unless the Board approved it.”
Blevins noted that SSCVA only filed the allegations after the Court denied McDermott’s Motion to Dismiss him individually from the case and denied the City of Hammond’s motion to be dismissed from the case.
In August 2022, Batistatos sued the SSCVA, alleging it violated the law in the handling of his contract renegotiations due to his age — 58 — and misspent federal Payroll Protection Plan funds in violation of the CARES Act, the Post-Tribune previously reported. Notices of intent to sue were also sent to McDermott and attorney Kevin Smith for $2.5 million for defamation for their actions around the time Batistatos was relieved of his duties by the board.
The suit named the SSCVA as well as its board chairman Andy Qunell, and several individual board members including Matt Schuffert, Brent Brashier, Tom Dabertin and Matt Maloney. In it, Batistatos claimed the SSCVA board engaged an outside attorney to renegotiate his contract, which was to expire Dec. 31, 2022, as well as formed a compensation committee to assist in the renegotiation.
The suit alleged many emails were sent between board members, and meetings were conducted in January and May regarding the negotiations. Batistatos said he informed the compensation committee and select board members he wanted to work four-and-half more years before retiring, but after May, negotiations stopped, he said in the complaint.
The board relieved Batistatos of his duties July 15.
Batsitatos alleged in the complaint that the compensation he was entitled to receive under his contract was not paid. He also alleged the board retaliated against him for complaining about discrimination in violation of the Age Discrimination in Employment Act, as amended.
Batistatos continued to be paid his salary, but the board has made clear he was no under consideration to continue as president and CEO after Dec. 31.
The suit also alleged the SSCVA board misspent PPP funds when it disbursed “no strings attached” expenditures of $25,000 each to 15 different municipalities in violation of the CARES Act. The law required 60% of PPP funds to be used for payroll and the remaining 40% for overhead. The SSCVA received about $388,500 in PPP funds. The board has disputed this claim.
In the notice sent to McDermott, Batistatos alleged McDermott conspired and made a backdoor deal with the SSCVA board to dismiss a pending lawsuit against the SSCVA if Payroll Protection Plan funds were given out to aid his and other municipalities. He also said McDermott “stated he would dismiss the lawsuit if Mr. Batistatos were terminated from his position at the SSCVA,” as well as making other Mr. McDermott made “numerous defamatory statements” against him on McDermott’s podcast with Kevin Smith entitled Left of Center Podcast, according to the document.
In August 2023, Van Bokkelen dismissed claims against Smith and Left of Center Media, LLC, which produces McDermott’s podcast, as well as axing Batistatos’ claim of “tortious interference” with “contractual and business relationships” against McDermott and the city of Hammond.
Michelle L. Quinn is a freelance reporter for the Post-Tribune.
