MOUNT VERNON — A former controller at Moundbuilders Guidance Center has filed suit against the organization, alleging fraud, wrongful discharge, racially motivated differential treatment, and intentional infliction of emotional distress.

According to the suit, Cassandra Wiltz of Delaware was hired April 28, 2008, as controller for Moundbuilders. She reported to Jeff Forman of Forman and Associates Consulting, a firm that provided accounting and consulting services to Moundbuilders. Forman is also chief financial officer for Moundbuilders.

The suit states that shortly after being hired, Wiltz discovered that Moundbuilders followed a practice of preparing and maintaining false and misleading financial records, deliberately created records that were unusable, and used a “secret” set of “off-the-books” records. The suit further states these “off-the-book” records were used to support false statements made to banks and others to fraudulently obtain loans and other financing; to fraudulently support a merger; and to fraudulently support requests for local, county, state and federal funding.

Wiltz also alleges Moundbuilders misused public funds by paying Forman and Associates to prepare the false records.

The suit states that in May and June of 2008, Forman instructed Wiltz to make known erroneous journal entries in financial records, and provided her with false information in an effort to persuade her to make a journal entry that concealed a material portion of his compensation from a financial report.

Wiltz states she told Forman, along with Laura Edelblute, chief operating officer for Moundbuilders, and Patrick Evans, chief executive officer for Moundbuilders, of her objections to the improper accounting and reporting practices, and refused to make such entries. She claims that in response to her objections and refusal, Forman, Evans, Edelblute, and Robin Lupher of Moundbuilders and Behavioral Health Care Partners subjected her to threats, intimidation, harassment and differential treatment, which Wiltz believes to be racially motivated.

The suit states the retaliation campaign ended when Wiltz’s employment was terminated by the board on Aug. 8, 2008.

The suit, filed in February, asks for damages, back pay, interest, reinstatement to the position of controller, reinstatement of fringe benefits and seniority rights, and costs of litigation, as well as civil and criminal fines and penalties on the defendants. Wiltz has requested a jury trial.

Along with Moundbuilders, the Community Mental Health and Recovery Board of Licking and Knox Counties is named in the suit, as well as Behavioral Health Care Partners Inc., a holding company for Moundbuilders; board members for CMHRB; Evans; Edelblute; Forman and Associates Consulting; Jeff Forman individually; Lupher; and Park National Bank.

Calls to Mazanc, Raskin, Ryder & Keller, the law firm on record for Moundbuilders, and to David Nenni of Dinsmore & Shohl, attorney for CMHRB, were not returned.