Gordon's top aide David Grimaldi fired

David Grimaldi, a divisive personality in New Castle County government and top aide to County Executive Tom Gordon, was fired Thursday, potentially setting up an election battle between the two powerful political figures next year.

Grimaldi called Gordon Thursday afternoon to discuss what he said were several employee "hostile workplace complaints" concerning Cheryl McDonaugh, who manages the county Risk Management Office. The five-person department is charged with handling workplace injury and insurance issues.

Grimaldi said he warned Gordon that if he didn't take action regarding the alleged complaints, "You are going to lose your whole government."

The dismissal was "in the spur of the moment because I questioned him" about the behavior of McDonaugh, Grimaldi said Friday. "It was just, '(expletive) you, David. You are fired.' "

Grimaldi, who has operated Gordon's public Facebook page for years, also acknowledged Friday that he took over the page after being terminated, changing the header and the web address from Gordon's name to “David Grimaldi 2016.”

Grimaldi, who was chief administrative officer, said he is considering challenging Gordon if he runs for a fourth term as county executive. Both are Democrats.

"I put lipstick on that pig for three years," Grimaldi said. "But it is a (expletive) pig."

The News Journal has filed a Freedom of Information Act request seeking the hostile workplace complaints that Grimaldi says exist.

Grimaldi also said nepotism is rampant among the ranks of county employees under Gordon's watch and singled out McDonaugh and Gordon Chief of Staff James McDonald as employees who have used their positions to get close family members government jobs.

"Nepotism, by the way, is a form of corruption. Look it up. It is a clear indication of corruption," Grimaldi said.

McDonald did not return a phone call seeking comment.

McDonaugh confirmed her son works for New Castle County government, but said there is nothing unethical about the situation.

"So do many people who work in county government," McDonaugh said. "I actually feel myself, a lot of other people with parents, sisters and brothers that work here find his behavior offensive."

McDonaugh also is listed as the treasurer for Citizens for Tom Gordon on the campaign committee's most recent filing. She said her friendship with Gordon predates her employment and called Grimaldi's statements "untrue" and "pathetic."

Gordon said he would not address Grimaldi's allegations, declining to explain why he fired the number two executive in the county. Gordon met with county department managers Friday.

"It's always a difficult situation to let go of someone," Gordon said. "I think he's a good guy. He is very well-intentioned, fabulous in the way of finance. He has a gift. We just had a lot of differences of opinion."

County Councilman George Smiley, a frequent critic of the Gordon administration, said it does not surprise him that Grimaldi had a problem with McDonaugh because “she stepped into areas Grimaldi doesn’t want anybody in there, in finances.”

“My perception from day one is he didn't want anybody knowing anything about finances,” he said. “He wanted to be the go-to guy all things finance.”

Grimaldi counters there are numerous issues that contributed to the firing.

"It has been building for a while (with) all the stuff I have begged him not to do. Either he was going to fire me or I was going to quit," Grimaldi said.

Former campaign manager for Gordon

The firing is an unexpected fall from the top tier of influence within New Castle County government and the inner circle of Gordon, who has been discussed as a possible 2016 gubernatorial candidate.

“I’m a little shocked by this,” said Jeff Peters, president of the Pike Creek Valley Civic League, an umbrella group representing about 20 active subdivisions.

Peters said he never witnessed discord between Grimaldi and Gordon during his organization’s numerous meetings with the county administration.

As chief administrative officer, Grimaldi was tasked with implementing Gordon's policy initiatives and overseeing 18 managers of the county's departments. Most recently, that included facilitating a county bond to help start a stock exchange in Wilmington for small- and medium-sized businesses and attempting, along with state and city officials, to negotiate an aid package to see DuPont spin-off The Chemours Company locate in the city permanently.

Grimaldi, who most recently made $139,000 annually, was appointed to the position in November 2012 after serving as Gordon’s campaign manager. The campaign was seen as a comeback for Gordon, who served as county executive from 1997 and 2004, but was the subject of a federal corruption scandal.

Gordon was accused of having a romantic relationship with his chief of staff at the time, Sherry Freebery. The allegations came to light when federal prosecutors filed mail fraud, wire fraud and racketeering charges against them. Gordon has denied having a romantic relationship with Freebery. Gordon’s felony charges were dropped. He pleaded guilty to misdemeanor counts of failing to keep accurate payroll records for two county employees.

Grimaldi, who was 34 when he was named to the second-in-command job, had come to Delaware as an executive with Firestone Hotel Group and was charged with running the Crowne Plaza Wilmington North on Naamans Road. He previously managed the hotel portfolio for the firm Minmetals Inc. and worked as a financial adviser for Morgan Stanley in New York.

His tenure was marked with controversy.

In 2013, Grimaldi was involved in a fight with another patron at a Wilmington restaurant, although no charges were ever filed.

Earlier this year, The News Journal covered Gordon's and Grimaldi's fights with county Auditor Bob Wasserbach over a controversial audit of the county's investment policies. Grimaldi drafted the plans to transfer $92 million from county government's reserve accounts to UBS, a global financial services firm.

Grimaldi and Gordon later were involved in a campaign to discredit the Wasserbach audit, saying it was politically motivated. They also clashed with County Council members over having access to government email accounts.

Grimaldi on Friday distanced himself from Gordon.

"I came here, was friends with him, he tricked me into thinking he was a nice guy with a bum rap and I fought hard for him. The fact is: the guy that everybody warned me about is who he is," Grimaldi said.

"Tom Gordon the brand was me. It wasn't him. The fact is: he is what everybody warned me he is," Grimaldi said later. "He is doing the same things he did in his last administration and people are not going to stand for it."

William Dunn, former president of the Civic League for New Castle County, on Friday said he was under the impression "Gordon and Grimaldi had a pretty good relationship," saying he was "completely surprised" by the firing.

After Grimaldi was hired, Dunn said, Gordon was more engaged with policies that the Civic League cared about. During his first administration, Gordon seem to be focused on pushing the political career of Freebery, he said.

“This term, (Gordon) brought in the Civic League on a number of issues,” he said. “I got the impression that Tom was trying to mend fences.”

‘This is very frustrating’

Grimaldi's termination was a surprise even to those who work closely with Gordon and Grimaldi.

County Council President Christopher Bullock, who deals with the executive branch daily, said he had no indication of the rift.

"This is very frustrating. It is a major distraction the county does not need. We should be focused on growing the economy and creating middle class jobs," Bullock said. "I did not see this coming."

County Councilman Penrose Hollins said he spoke to Grimaldi Wednesday to confirm a meeting with representatives from Chemours on Friday morning. The company is exploring relocating its headquarters out of the DuPont Building in downtown Wilmington, taking about 600 jobs elsewhere.

"It seemed everything was on schedule. There was nothing to make me thing anything was amiss,” Hollins said.

He said Grimaldi’s departure “leaves a very serious void in county government."

County spokesman Antonio Prado said in a statement that Gordon "plans to appoint an acting chief administrative officer in the near future."

County Councilman David Tackett suspects county officials will have to adjust in the transition process. He said Grimaldi “had the pulse of the financial issues in the county,” especially with the Port of Wilmington and Chemours.

Grimaldi “was at the heart of all of this,” Tackett said. “I hope someone can hit the ground running with these issues.”

Reporter Karl Baker contributed to this story.

Contact Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com. Follow @Ber_Xerxes on Twitter.

Material related to some allegations made by Grimaldi have been removed from this version of the story.