Mortgage Daily

Published On: October 3, 2006
Harassment Lawsuit Filed by EEOCStirling Mortgage companies are defendants

October 3, 2006

By LISA D. BURDEN
WASHINGTON correspondent for MortgageDaily.com

The Equal Employment Opportunity Commission has filed a lawsuit against a Utah-based residential mortgage lender alleging female workers were sexually harassed by the owner and other employees. But an attorney for the defendants claims an internal investigation by the company paints a different picture.Since 2002, women who have worked for Stirling Mortgage and a related group of companies have been subjected to sexual harassment — including unwelcome touching, sexual innuendo and the viewing of sexually offensive e-mails as part of their job, the commission said.

One woman, Julie Williams Sparks, was fired in January 2003 after she complained of the alleged activities, the commission said in the complaint.

Such conduct, if proven, violates Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991, which prohibits employment discrimination based on sex, race, color, religion or national origin, as well as retaliation.

“Our investigation into Ms. Williams Sparks’ charge revealed that this employer’s actions harmed not only her but additional women as well,” the commission’s Phoenix district director, Chester V. Bailey, said in a written statement. “This case makes it quite clear that we will seek out discrimination and focus our efforts on addressing it, especially where others have been affected.”

But the Hamlet companies conducted their own internal investigation and, as a result, deny that any such harassment occurred, plaintiffs’ attorney Scott Crook told MortgageDaily.com in a telephone interview. He said Sparks, formerly an administrative assistant to Michael Brodsky — the owner and chairman of the Hamlet group of companies, was fired for poor job performance.

Sparks’ allegation of having to view salacious e-mails was the result of unsolicited pornographic e-mails finding their way into Brodsky’s e-mail queue, which Sparks was responsible for screening, the attorney said — adding that the human resources department acted on the woman’s complaints by suggesting she not open e-mails she suspected were sexually offensive.

However, in a published account, commission attorney Mary Jo O’Neill said employees engaged in sexual harassment — with Brodsky’s behavior being the most serious.

When asked what the companies’ court response would be to the litigation, Crook said the Hamlet companies had not yet been served with the commission’s complaint.

The lawsuit asks the court to order the Hamlet companies, which include Hamlet Development Corp., Hamlet Homes and Diversified Habitats, to provide Williams with appropriate relief, including reinstatement and back wages.

The commission also seeks compensatory and punitive damages for Sparks and the other women affected; an order granting a permanent injunction enjoining the company from engaging in any sex discriminatory or retaliatory practice; and an order directing the company to institute and carry out policies and practices which eradicate and prevent sex discrimination and retaliation.


Lisa D. Burden is a legal analyst for MortgageDaily.com and holds a law degree from the University of Maryland. She is currently a freelance journalist who previously wrote for Institutional Investor publications and the Baltimore Daily Record.

e-mail Lisa at: [email protected]

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