Sex party lawsuit against Tinton Falls company ends abruptly

A Tinton Falls-based finance company on Friday resolved a lawsuit alleging it made sexual harassment so much a part of its culture that employees were asked to sign "waiver" forms stating they wouldn't object to the "lewd" conduct.

A lawyer for former Corporate Bailout LLC employees who made the charges said the lawsuit filed just a day earlier would be dropped. Terms weren't disclosed.

"The matter has been fully and finally resolved," Christian V. McOmber, the employees' lawyer from the Red Bank firm McOmber & McOmber, said in a statement. "The parties look forward to putting this behind them."

"The company takes any and all allegations seriously, and we're pleased this has been resolved," said Jeffrey Testa, a lawyer from McCarter and English who represented the defendants.

The quick resolution curtails a lawsuit chock full of lurid and incendiary claims. The complaint described an office where strippers provided lap dances, and sex toys and related trinkets served as decorations on special occasions, including birthdays and Halloween.

The suit further alleged that young "attractive" employees were hired with the expectation they would have sex with top managers.

Those were only a few of the details in a lawsuit against Corporate Bailout and three related companies, whose principal place of business is on Park Road.

The company's website says it helps companies in debt by working with creditors, suppliers and stakeholders. The lawsuit claimed it has as many as 100 employees and generates revenue of more than $100,000 a day, mostly through what it says are predatory loan- and debt-relief practices.

The action, filed in Middlesex County, was brought on behalf of Nicole Orlando, the ousted director of human resources, along with Evelyn Grondski and Donna Simone, two former customer service representatives. To see a graphic scene from one of the office parties, watch the video above. Warning: Video contains content of a sexual nature.

One of the company's owners said the lawsuit was the result of a misunderstanding.

"The company reviews all allegations that are made by any of our employees, who we value highly, very seriously," Mark Mancino said in an email to the Asbury Park Press. "We are pleased that this misunderstanding with some of our former employees has been amicably resolved and the allegations withdrawn. We look forward to continuing to provide the highest level of service to our clients with our dedicated employee team."

In addition to the business entities, seven officials were named as defendants: Mark Mancino, Richard Massini and Timothy Momat, co-owners; Michael Hamill, Michael Marino and Patrick Sheehan, managers; and Daryl Alessi, a supervisor.

They "shamelessly created a sexual harassment playground fueled by drugs and alcohol and swarming with hand-picked young women rewarded for dressing and behaving provocatively — all in order to indulge their misogyny and vulgar sexual perversions," Matthew Luber, one of the employees' laywers, said earlier in the day.

The lawsuit detailed a culture that is rife with lewd behavior that would rival "Boiler Room" and "The Wolf of Wall Street," complete with strippers and blow-up dolls. The lawsuit includes a footnote that explains what a "ball gag" is. It was accompanied by photos and a video of a stripper giving a lap dance in what it said was the Corporate Bailout office.

The episode was unusual. Employee disputes often are resolved either before the lawsuit is filed or closer to the trial date. In this case, one expert said the decision to resolve the lawsuit quickly likely was wise.

"The rational thing is to settle quickly," said Michael Santoro, a business ethicist based in Santa Cruz, California. "We don’t read about that normally."

The complaint alleged that Corporate Bailout hired strippers to give lap dances and required employees to sign waivers stating the company intended to have "lewd" activity in the office during business hours, the lawsuit said.

In addition to those claims, the suit alleged that the defendants engaged in illicit business practices, requiring clients to make up-front payments or monthly installments into an escrow account to help settle debts.

Instead of negotiating with creditors, the companies allow the fees and interest to build, the lawsuit said.

Orlando was hired in February as a bookkeeper and was quickly promoted to human resources director. Simone was hired in September as a customer service representative. Grondski joined last May, also as a customer service representative.

They witnessed a pattern of harassment, discrimination and retaliation, the lawsuit said.

Among the allegations:

The defendants regularly made sexual advances and sexually charged comments toward female employees. They "incessantly harass female employees for sexual favors or to engage (in) a sexual relationship, and other such inappropriate conduct."

Women who officials found attractive were rewarded and had their jobs protected, regardless of their performance.

Mancino for Halloween 2016 dressed as Willy Wonka and hired a stripper to dress as an Oompa Loompa, giving lap dances to men in the office.

The defendants hired a stripper in June for Hamill's birthday. The stripper played the role of a dominatrix, handcuffing Hamill to a chair.

Orlando was disturbed by the June event and received numerous complaints from employees, according to the complaint. She pleaded with Mancini not to engage in similar conduct again and was told that "if she did not lighten up, she would be replaced," the lawsuit said.

Grondski and Simone were among the employees who reported their concerns about management's behavior to Orlando, who in turn reported their complaints to management. Days later, the customer service representatives were told they were being terminated because of a corporate restructuring, the lawsuit said.

Orlando was fired, too. When she "advised management in July 2017 that the sexually promiscuous behavior needed to stop, Defendant Mancino responded that 'You are a grown woman. Handle it and resolve your issues. I'll replace you if I have to.'"

Michael L. Diamond; 732-643-4038; mdiamond@gannettnj.com