By Erica Kearns
EnAct, formerly Capital Resource Agency, has filed a federal lawsuit against an Iowa company, Meliora Partners Inc. along with Meliora CEO Magi York and CFO Dan Miller. EnAct is accusing Meliora of fraudulent inducement to contract, breach of fiduciary duty, fraud, breach of contract and negligent hiring/supervision/retention. EnAct’s suit alleges that under Meliora’s management, the agency’s weatherization program did not reach compliance, which forced the program to be turned over to the state.
EnAct delivers services including on the job training and job placement assistance to low income residents in Kanawha, Putnam, Clay, Boone and Fayette counties. In 2009, the Mountain State received more than $37,000 for its Weatherization Assistance Program. EnAct, formerly known as Capital Resource Agency, was awarded $2,546,639 for its program. The agency started experiencing issues with meeting production requirements and work standards, at which time Meliora was contracted to manage the agency.
Meliora identified challenges facing the agency, including a lack of executive leadership and accountability. Meliora told the agency to hire an interim executive director and chief financial officer. The agency contracted with Meliora where in exchange for $235,000 of the agency’s funds, it would provide staff to serve in these positions. Meliora appointed its CEO as interim executive director and its CFO to serve as financial director, the suit asserts.
After being taken over by Meliora, the weatherization program still did not reach compliance. The lawsuit alleges that Meliora did not meet their contractual obligations, forcing Capital Resources to return the weatherization program to the hands of the WV Department of Commerce. Capital Resources was ordered to reimburse $486,515.00 in weatherization grant monies after production goals and program standards were not met. The suit alleges the weatherization program didn’t reach compliance in the time Meliora managed the agency. Meliora has not yet filed a response to the law suit.
By Erica Kearns