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Martinez then attempted to hide his conduct from the MSTS board of directors by lying, including by asking Musin to draft misleading answers to questions posed by Honeywell’s head of government business, D.J. In his suit, Musin alleged that Martinez lied in order to receive “certain annuity payments” for himself and John Benner, an MSTS vice president, before either were eligible to receive that compensation under the company’s operating agreement.
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MSTS has managed the former Nevada Test Site under contract to the National Nuclear Security Administration (NNSA) since 2017, and the agency holds options that would extend the pact into 2027. Musin sued MSTS in 2019 after the company demoted and then fired him. Only Jacobs, which was not a party to Musin’s lawsuit, lists MSTS as a subsidiary, disclosing a 37% stake in the company in an attachment to its fiscal 2020 10-K filing with the Securities and Exchange Commission. MSTS is a joint venture of Honeywell, HII Nuclear and Jacobs Engineering Group. To successfully sue under Sarbanes Oxley, Musin would have to demonstrate that MSTS is “an affiliate whose financial information is included in the consolidated financial statements” of a publicly traded company, Dorsey wrote. Musin has not yet demonstrated that the privately held MSTS, in which Honeywell owns a minority stake, qualifies as a covered subsidiary or affiliate protected by the landmark anti-corruption law passed after the Enron accounting scandal of 2001 - but he might be able to, Dorsey wrote in her order. District Court in Nevada threw out most of those claims Friday because Sarbanes-Oxley protections apply only to employees of publicly traded companies and certain affiliates. The former finance chief of Mission Support and Test Services LLC, who alleges he was fired last year for exposing financial misconduct at the Nevada National Security Site by company president Mark Martinez, has less than two weeks to revise his lawsuit before a federal judge throws it out for good.Įx-Chief Financial Officer Stephen Musin sued Martinez, Mission Support and Test Services (MSTS) and its parent company Honeywell international for the alleged whistleblower retaliation under the Sarbanes-Oxley Act, but Judge Jennifer Dorsey of the U.S.