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For Immediate Release:  
For Further Information:
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August 17, 2009  

Lee Moore
609-292-4791

Office of The Attorney General
- Anne Milgram, Attorney General
Division on Civil Rights

- C. Carlos Bellido, Acting Director

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Division on Civil Rights Finds Probable Cause in Case of Alleged Racial, Sexual Discrimination by Asset Management Firm

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TRENTON -- The Division on Civil Rights announced today it has issued a Finding of Probable Cause against a Hudson County securities and asset management company charged with discriminating against a worker because of his race, and because he is a homosexual. The Finding of Probable Cause also applies to charges that the company retaliated against the man by firing him after he complained about a hostile work environment.

Named as Respondents in the Finding of Probable Cause are The Bank of New York, which owns the securities and asset management business, and two individual company employees – vice-president Charles Ferrari and supervising assistant manager Walter Gorski. (The Bank of New York has merged with Mellon Financial Corp. and is now known as The Bank of New York Mellon.)

The Respondents are accused of subjecting employee Paul Nathan, an African-American, to discriminatory treatment and hostile environment harassment because of his race and sexual orientation, and for later firing him in the wake of his reporting his allegations internally, as well as to the Division on Civil Rights.

“The conduct alleged in this case is troubling,” said Division on Civil Rights Acting Director C. Carlos Bellido. “Employers have a duty to create and maintain a work environment in which all employees are treated with equality, dignity and respect. In addition, employers are prohibited from using discipline or discharge to retaliate against a worker who has reported discriminatory conduct.”

Although Nathan, of Flushing, N.Y., filed his original discrimination complaint with the Division on Civil Rights in late 2006, he amended the complaint approximately a year later to include retaliation after the Bank of New York discharged him.

According to the Finding of Probable Cause, a human resources executive employed by the Bank of New York told Nathan in August 2007 it was obvious he was unhappy and that, upon his termination, he “should go somewhere else where he would be happy.”

An employee of the company’s Enclosing Mail Operations (EMO) department, Nathan charged in his original complaint that he and another African-American worker were routinely assigned to the largest, most difficult and burdensome equipment in the so-called “green room” without assistance in lifting heavy materials. The green room was where the company’s master mailer machines were located.

Nathan’s complaint charged that non-African-American employees were not regularly assigned to such green room duty and, if they were, received help in dealing with the heavy lifting. According to the Finding of Probable Cause, a half-dozen other Bank of New York employees interviewed by State investigators corroborated Nathan’s account of the disparate treatment. Two witnesses also corroborated Nathan’s claim that the green room was referred to as ‘the plantation.”

Nathan also charged that he was targeted for acts of racial and sexual harassment from numerous Bank of New York employees. Among other things, Nathan alleged that he’d been the target of name-calling, derogatory comments about his sexual orientation, the posting of at least one racially and sexually offensive photograph-and-caption, and a threat that he would be sodomized with a stick.

Nathan told investigators he complained about the situation to several members of upper management within the Bank of New York, but to no avail. Other company employees who spoke with State investigators said both Ferrari and Gorski set the tone of the workplace by using humor that was often racially or sexually derogatory, by making racially and sexually offensive comments, and by laughing at such conduct from others.

The Bank of New York denied that Nathan ever broached the subject of sexual harassment with company officials, but did acknowledge that Nathan brought to a human resources executive his concern over racial discrimination. The bank advised State investigators that it looked into Nathan’s claims and found that Ferrari and Gorski had tolerated “raw,” but not racially offensive, language in the work place. Both men purportedly had Corrective Action Notices placed in their personnel files. Ferrari and Gorski have both denied the allegations made by Nathan. The Bank of New York also denies firing Nathan as a retaliatory move.

A Finding of Probable Cause does not resolve a civil rights complaint. Rather, it means the State has concluded its preliminary investigation and determined there is sufficient evidence to support a reasonable suspicion the New Jersey Law Against Discrimination (LAD) has been violated.

The Law Against Discrimination (LAD) provides that each Respondent found to have committed a violation is subject to a statutory penalty of up to $10,000, provided he or she has not been convicted of a previous violation within the past five years. Respondents who have violated the LAD within the past five years are subject to a penalty of up to $25,000, while those who have been convicted of two or more violations within the past seven years are subject to a penalty of up to $50,000.

In addition, under amendments to the LAD, Respondents found to have committed unlawful discrimination may be liable for substantial compensatory damages, including back pay, and pain and humiliation.

According to Acting Director Bellido, now that the Division has issued a Finding of Probable Cause, the case will be referred for a process known as Conciliation. If Conciliation is not successful, the matter will be referred to an Administrative Law Judge for a hearing on the merits, which is a non-jury trial. The Administrative Law Judge will then issue a written Initial Decision.

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