By Frost McGahey
Investigative Reporter
Dan Otero, CEO of HMS
{Authtor’s Note: Names of victims have been changed to protect their privacy.]
According to court documents CEO Dan Otero’s history of sexual harassment began soon after his hiring in 2016. In a recent article by Algernon D’Ammassa in the Las Cruces Sun News, Otero and HMS were named in a lawsuit filed by Philadelphia Insurance which detailed the sexual harassment. The Beat reviewed the lawsuit and found the following:
HMS hired Mr. Otero on February 22, 2016, and shortly after it is alleged that he began a practice of sexually harassing females employed including Ms. Mary Hathaway and Dr. Linda Garcia. Ms. Hathaway was the Chief Operating Officer of HMS, and had been employed since 1995.
According to Ms. Hathaway and Dr. Garcia, Otero’s sexual harassment followed a similar pattern in which he would stare at females in a sexually suggestive manner, embrace female employees in a sexual manner by pushing his chest into the chest of female employees, pushing his groin into the groin area of female employees, and placing his hand on the shoulders of female employees and running it down their backs and onto the top of their buttocks.
The Hathaway Lawsuit:
Ms. Hathaway alleged that Mr. Otero sexually harassed her and ultimately retaliated against her by terminating her employment when she rejected his sexual advancements.
Ms. Hathaway alleged that she repeatedly told Otero to stop sexually harassing her, to stop giving her sexual hugs, to stop asking her to travel with him, and to stop asking her to have drinks or dinner with him.
Ms. Hathaway alleged that because she rejected Otero’s sexual advances, she was retaliated against and ultimately fired from HMS.
On September of 2016, Ms. Hathaway alleged that Otero took retaliatory action against her, including downgrading her written employment contract by lowering the term of her contract from five years to three and eliminating the severance provision in the event she was terminated.
On November 14, 2016 at 6:58 am, Otero emailed Ms. Hathaway stating that “it would be nice if we can travel together on this trip.” At 9:00 am that morning, Ms. Hathaway went to Otero’s office and again told him she was not going to travel with him and to quit asking her to travel.
A little bit later, Otero told Cathy Diaz that he had decided to place Ms. Hathaway on paid administrative leave, pending an investigation into Medicaid billing issues and the Federal False Claims Act.
At 11:00 am, Otero and Diaz met with Ms. Hathaway and placed her on paid administrative leave pending two internal investigations.
Ms. Hathaway alleged that Mr. Otero’s investigation was retaliation for her denying his sexual advances. Prior to reporting and opposing discrimination, she stated that she was not reprimanded in writing.
The day after Ms. Hathaway was placed on paid administrative leave, she contacted HMS board member Priscilla Perea and made remarks to the effect of: “If they want to do something, I’m not going away quietly.”
HMS warned Ms. Hathaway not to contact HMS board members or employees while on paid administrative leave. Upon learning that Ms. Hathaway had contacted HMS board employees and board members, HMS issued a Second Notice of Paid Administrative Leave and Written Warning to Ms. Hathaway on December 13, 2016, which opened up a third investigation into whether Ms. Hathaway was contacting HMS board members.
Ms. Hathaway was warned, in writing, to refrain from discussing either of the pending investigations or other personal issues with HMS board members or employees, however during HMS’ investigation it was revealed that she did contact HMS board members or employees.
Ms. Hathaway alleged that this third investigation was concocted because Mr. Otero knew the first two investigations would not provide a basis for termination.
On December 20, 2016, in light of Ms. Hathaway’s continued contact with HMS board members or employees, HMS terminated Ms. Hathaway for insubordination, failure to cooperate with an investigation, unsatisfactory conduct and dishonesty.
On February 13, 2017, Ms. Hathaway filed a charge with the EEOC alleging that among other things: Otero (1) hugged her in a “sexual way”; (2) made sexual comments to her, such as his wanting to “travel together, go to dinner, have drinks together and get to know [her]”; (3) made comments regarding her clothing; (4) touched her in a sexual way, such as “coming up behind [her] and putting his hands around her stomach” and invading her space; (5) Ms. Hathaway repeatedly told Mr. Otero to stop and rejected his sexual advances.
On October 23, 2018, the Hathaway lawsuit was settled. Although the terms were not disclosed, Ms. Hathaway claimed $1.25 million in economic damages in her lawsuit.
HMS consented to the amount of the settlement with full knowledge and understanding of Philadelphia’s position that there was only $1 million in coverage available for the Hathaway and Garcia claims.
To be Continued…
Hidalgo Medical Services CEO accused in sexual harassment complaints (lcsun-news.com) Algernon D’Ammassa
District Court, D. New Mexico
Docket Number: 2:18-cv-01190
Citation: Philadelphia Indemnity Insurance Company v. Hidalgo Medical Services, 2:18-cv-01190, (D.N.M. Dec 18, 2018) ECF No. 1
Date Filed: December 18th, 2018
