VERSUS:
U.P. Breaking News Investigation: Northern Michigan TV and radio station moguls accused in different lawsuits of drunken parties, lavish lifestyles for bosses but not employees, sexual harassment, and serious violations of state and federal laws
Upper Peninsula Breaking News is a free news service in Michigan’s Upper Peninsula – only requirement is to give mandatory credit for use of audio, video, graphics and online uses.
Questions call 906-273-2433
News Director, Owner
Upper Peninsula Breaking News is beginning a series of articles named Northern Michigan Media Wars
Numerous federal civil lawsuits have been filed exposing alleged drunken management, sexual harassment, age discrimination, nepotism, and more including lavish lifestyles while employees only make a fraction of the money.
Here is Northern Michigan Media Wars #1
The first story involves 59-year-old William E. Kring of Traverse City – former northern Michigan boss of two television stations – TV 9 & 10, WWTV/WWUP Traverse City/Cadillac (CBS affiliates) – that serves 23 counties in the northern Lower Peninsula and three counties in the eastern Upper Peninsula.
Read more about the people mentioned in the lawsuit using links at end of story.
This month Kring filed a amended federal lawsuit against his employer of nearly three decades – Heritage Broadcasting Company of Michigan, Inc.
Besides budgets and other boss-like jobs, Kring says he was in charge of a 135 -person staff working in six locations.
In fact, Kring filed the federal suit against three Delaware corporations in the Michigan media business: Heritage Broadcasting Company of Michigan, Inc.; Heritage Broadcasting Group, Inc.; and MICI, Inc. – and this involves a northern Michigan media mogul and his son – Mario Iacobelli.
In April 2016, Mario Iacobelli’s son, M. Peter Iacobelli, become chief executive officer, chief operating officer and president.
The suit also mentions – but does not make a defendant – the northern Michigan TV News Director Kevin Dunaway – a close Iacobelli family friend and TV 9 & 10’s News Director, according to the lawsuit.
This is just one of many recent – and not so recent – civil suits have been filed involving northern Michigan media entities.
While heritage Broadcasting’s employees made relatively little money – Kring admits in the suit that he roughly earned over $500,000 annually including fringes – and drove a company paid-for BMW.
In 2015, Kring had an annual salary of $375,000 annually and he was a $350,000 bonus – and don’t forget the BMW
A married father of three, Kring admits in his 14-page, two-count lawsuit that he was drunk at a TV station holiday party on December 16, 2015 – when he made inappropriate comments to a female sales person.
At the hotel, Kring invited a number of employees to his room to gather and drink champagne, the lawsuit states. Only one female employee accepted his invitation
Kring and the female employee talked and drank champagne and at approximately 1:00 a.m., according to the suit.
Kring said: “Since you are not getting naked, I am going to bed.” The female employee left Kring’s room.
Kring – who has been depressed and undergoing treatment – accuses his former bosses of of violating and retaliating involving federal laws.
Count I: Violation Of Family And Medical Leave Act — Interference
Count Ii: Violation Of Family And Medical Leave Act — Retaliation
Look at lawsuit filings – and below info on older lawsuits involving Heritage:
Heritage Broadcasting lawsuit Exhibit A
Heritage Broadcasting Lawsuit 7-8-16 Updated Lawsuit
Heritage Broadcasting lawsuit summon
Heritage Broadcasting summons in civil action sheet in lawsuit
Heritage Broadcasting lawsuit summons
Heritage Broadcasting lawsuit civil cover sheet
Heritage Broadcasting lawsuit jury trial demand
The suit states Kring is suffering from “major depressive disorder moderate” and “general anxiety disorder mild.”
In coming days, U.P. Breaking News will be outlining lawsuits against northern Michigan media.
Below are more details in this lawsuit – and we are looking over other lawsuits involving the the same and other people and media corporations.
Remember these allegations are made in lawsuits – and not by us – we note as it is common for even the media to blame the messenger – and that is us.
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Filed on July 8, 2016
Assigned to U.S. District Court Judge Paul L. Maloney
William E. Kring, Plaintiff
v
Three Delaware corporations in the Michigan media business:
Heritage Broadcasting Company of Michigan, Inc.
Heritage Broadcasting Group, Inc.
MICI, Inc.
First Amended Complaint
Plaintiff:
William E. Kring, 59, of Traverse City, MI
28-year employee of Heritage Broadcasting (started April 1, 1988)
Salary $375,000 annually
In 2015, Heritage awarded him a $350,000 bonus
Heritage provided a BMW for his use and numerous other fringe benefits
Rewarded with substantial salary increases, bonuses and fringe benefits
Married father of three
Central Michigan University Class of 79 with undergrad degree business administration
Certified Public Accountant (CPA)
Accountant at Grant Thornton in metro Detroit (1983-1988)
Kring provided accounting services to Heritage while employed at Grant Thornton
In 1988, Mario Iacobelli solicited Kring to become Heritage chief financial officer
At the time, Heritage owned/operated radio stations in Texas and West Virginia and a television station in New York and was experiencing severe financial difficulties
During 28-year tenure with Heritage, Kring reported directly to Mario Iacobelli.
Kring was instrumental in Heritage acquiring TV 9 & 10 in July 1989
Responsible for keeping Heritage afloat during his early years with the company as it defaulted on its bank loans and was required to restructure by its lenders.
By way of Kring’s efforts, in 1990/1991 Heritage refinanced its debt and resumed normal business operations
Upon Heritage firing TV 9 & 10’s general manager in 1992/1993, Kring was promoted to station manager and was still its chief financial officer; Mario Iacobelli became general manager
In 1997, Mario Iacobelli promoted Kring to TV 9 & 10 general manager and was still its chief financial manager duties
During the 1990s, Kring was instrumental in Heritage’s sale of the radio stations and the New York television station.
As result of his successful operation of TV 9 & 10 and the stations’ profitability, Mario Iacobelli promoted Kring to:
-
Vice president, general manager, general sales manager, and chief financial officer of Heritage Broadcasting of Michigan, Inc. – and Kring was elected to the company’s board of directors.
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Vice president, treasurer of the Heritage Broadcasting Group, Inc., and he was elected to its board of directors.
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Vice president and treasurer of MICI and he was elected to its board of directors
Heritage acknowledges Kring’s outstanding job performance
Kring’s responsibilities as Heritage vice president, general manager and chief financial officer at TV 9 & 10 included:
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Managing a 135 person staff working in six locations
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Overseeing/managing Heritage’s finances, banking relationships, cash management
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Preparing Heritage’s five year strategic plan including capital expenditures
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Coordinating the annual outside audit/preparation of tax returns
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Managing sales department, staff
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Overseeing the purchase of capital assets
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Creating annual budgets
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Negotiating insurance contracts, leases and real estate purchases
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Trustee of all employee benefit plans
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Corporate liaison to federal, state and local governmental entities; and the business community
Defendants are Delaware corporations
Principal business in village of Tustin, MI in Osceola County
Heritage owns/operates television stations TV 9 & 10, WWTV/WWUP (CBS affiliates)
Stations serve 23 counties in the northern Lower Peninsula and 3 counties in the eastern Upper Peninsula.
Heritage broadcast facilities in Cadillac, MI and Traverse City, MI and was founded by Mario Iacobelli
Heritage is a wholly owned subsidiary of MICI, a holding company, which is owned and controlled by Mario Iacobelli and his family; Mario Iacobelli served as Heritage’s president and the chairperson of its board of directors.
In April 2016, Mario Iacobelli’s son, M. Peter Iacobelli, become chief executive officer, chief operating officer and president
Heritage Acknowledges Kring’s Outstanding Job Performance
Over the decades, Mario Iacobelli consistently praised Kring’s job performance and rewarded him with substantial salary increases, bonuses and fringe benefits
Until shortly prior to his firing, Kring was never disciplined, subject to any performance related warnings or otherwise criticized regarding his job performance
In 2008/2009, at a Heritage board of directors’ meeting at an Arizona country club, Mario Iacobelli offered Kring an equity interest in the family’s various mobile home park businesses. When Kring declined that offer, Mario Iacobelli offered him a generous retirement package and benefits, which offer Kring accepted.
In recent years, Mario Iacobelli moved his residence from Michigan to Arizona and became less and less involved in Heritage’s day-to-day business operations, shifting more and more responsibility to Kring
A long time Park City, Utah resident, M. Peter Iacobelli was minimally involved in the day-to-day operations of Heritage, primarily through electronic communication and sporadic on site visits
Typically on 3 to 6 occasions per year, Mario Iacobelli, M. Peter Iacobelli, a Kevin Dunaway (a close Iacobelli family friend and TV 9 & 10’s News Director) and Kring attended various business meetings and conventions across the United States and business related events involving the TV 9 & 10 in Michigan
At these events, Mario Iacobelli, M. Peter Iacobelli, Dunaway and Kring socialized and consumed alcoholic beverages
Kring medical leave:
On December 16, 2015 Heritage hosted its annual holiday party dinner for TV 9 & 10 employees at a restaurant in downtown Traverse City
Subsequently, a number of managers and other employees went to the Grand Traverse Resort Hotel where Heritage had reserved rooms
At the hotel, Kring invited a number of employees to his room to gather and drink champagne. Only one female employee accepted his invitation
Kring and the female employee talked and drank champagne and at approximately 1:00 a.m.
Kring said: “Since you are not getting naked, I am going to bed.” The female employee left Kring’s room.
On or about December 23, 2015, Kring encountered Kevin Dunaway at a gas station where Dunaway told him that the female employee had reported Kring’s comment to her at the hotel. Dunaway assured Kring that he had taken care of the matter with the employee.
Kring told Dunaway that he wanted to apologize to the female employee.
On January 28, 2016 Mario Iacobelli requested that Kring come over to his condominium in Cadillac to discuss some business matters. Present at the meeting were Mario Iacobelli, M. Peter Iacobelli, Kevin Dunaway and Kring.
Dunaway states that a female employee informed him that Kring made an inappropriate comment to her after the December 16, 2015 holiday party but that the employee had not filed any sort of complaint or charge of sexual harassment.
Kring admitted to making an inappropriate comment to the employee.
M. Peter Iacobelli commented that for some time prior to the holiday party, Kring had been in a “bad mood” and difficult to communicate with. M. Peter Iacobelli admitted that prior to the Jan. 28, 2016 meeting he had never brought his concern about Kring’s behavior to his attention.
At the conclusion of the 20 minute meeting, Mario Iacobelli told Kring that Heritage that effective immediately it was placing him on “leave”
Kring was told not to report to work during the leave and Kring abided by Heritage’s directive
On February 1, 2016, Heritage sent Kring a document entitled “Confidential Opportunity For Continued Employment Agreement”
Kring understood that in order to remain employed by Heritage, he had to sign the Continued Employment Agreement.
Kring had no input in drafting the Continued Employment Agreement
In the Continued Employment Agreement, Heritage referenced “certain substance abuse related behaviors…” relating to Kring (page 1). Heritage required Kring to go to a “Substance Abuse Professional” for an evaluation and to complete a “treatment program” as specified by the substance abuse professional
Heritage stated that, “Although the parties have not determined if certain sexual harassment allegations are with merit, Employee will also be referred to a Professional Counselor to be evaluated for counseling.”
Also, Heritage directed Kring to “engage in treated and/or counseling related to the allegations of possible sexual harassment recommended by the Professional Counselor.
Heritage indicated that Kring could “utilize the Employer provided health care insurance to cover the costs” of the specified treatment and counseling
Heritage further told Kring the following: “After Employer receives written certification of Employee’s successful completion of the treatment programs to which he is referred, Employer shall determine if it will terminate or continue the Employee’s employment.”
Heritage informed Kring that he would be “considered on a paid leave of absence for a minimum of ninety days”
Kring signed the Continued Employment Agreement
Kring’s continuing medical treatment
Pursuant to the Continued Employment Agreement, Kring went to Doug Moser, MA, LLP, CAADC, at Munson Medical Center, for a substance abuse evaluation
On February 15, 2016, Moser issued a written evaluation and found that Kring did not have an “alcohol use disorder” and did not have any “withdrawal/detox needs”
Moser also found that Kring suffered from “mild ‘situational’ depression and anxiety/worry”
Photos of Counselor David Price, as seen on a Sussex Directories Inc. site
On January 29, 2016 Kring began a course of continuing treatment with David Prince LPC, a licensed professional counselor pursuant to the Continued Employment Agreement
Prince determined that Kring was suffering from “major depressive disorder moderate. General anxiety disorder mild”
Kring participated in an ongoing mental health treatment program with Prince for approximately three months
Kring seeks to return to work
On February 16, 2016 Kring sent a text message to Heritage advising it of the results of the substance abuse evaluation and provided it with a copy of Moser’s evaluation. In addition, Kring informed Heritage of his ongoing counseling/treatment program with Prince. Finally, Kring asked to discuss with Heritage “resuming his career and working with all of you again”
In a second text message to Heritage dated February 16, 2016, Kring indicated that he felt “capable of resuming my responsibilities at Heritage Broadcasting.” Again, he asked to meet with Mario Iacobelli, M. Peter Iacobelli and Dunaway
Mario Iacobelli responded to Kring by way of a February 19, 2016 text message, indicating that Heritage was not prepared to meet and further:
“The original arrangements stated that there would be a 90 day leave and at this point we are holding to that”
Heritage fires Kring:
Heritage refused to communicate further with Kring until April 8, 2016 when it sent him a letter informing him as follows:
“We have determined it is in all of our best interests to conclude our business relationship. Your last day of employment is April 26, 2016, which is 90 days from the date your paid leave commenced.”
(A copy of the April 8, 2016 letter is attached as Exhibit “A”)
By of the April 8, 2016 termination letter, Heritage further offered to pay him severance upon executing a written agreement pursuant to which he released any and all legal claims that he had against Heritage
Heritage concluded the April 8, 2016 letter stating:
“Over the past 28 years, you have been an invaluable asset to our organization. On behalf of everyone at Heritage Broadcasting and the Iacobelli family, we sincerely thank you for your contribution.”
Kring refused to execute the proposed severance agreement
COUNT I: VIOLATION OF FAMILY AND MEDICAL LEAVE ACT —INTERFERENCE
Unlawful under the Family And Medical Leave Act:
FMLA entitles qualified employees to take up to12 weeks of unpaid leave, without fear of termination, when the leave is taken for a serious health condition that makes the employee unable to perform the functions of their job
A serious health condition is “an illness, injury, impairment, or physical or mental condition” that involves “continuing treatment by a health care provider”
Employers are prohibited from interfering, restraining, or denying the exercise of or attempted exercise of any FMLA right
Pursuant to the Continued Employment Agreement, Heritage was on notice of Kring taking an FMLA leave due to a serious health condition
Heritage denied Kring the FMLA benefits to which he was entitled
Heritage engaged in a prohibited acts under the FMLA by refusing to permit Kring to return from an FMLA leave and resume his position as its Vice President, General Manager and Chief Financial Officer and subsequently, firing him
Heritage knowingly and deliberately engaged in intentional violations of the FMLA and further, acted with malice and/or with reckless indifference to Kring’s rights under the FMLA
As a direct and proximate result of Defendants’ adverse actions, Kring has suffered damages
Wherefore, Plaintiff, William E. Kring, requests:
Court enter judgment against Defendants, Heritage Broadcasting of Michigan, Inc., Heritage Broadcasting Group, Inc., and Mici, Inc. including compensatory damages, liquidated damages, costs, pre-complaint, pre-judgment and post-judgment interest, and attorney fees
COUNT I: VIOLATION OF FAMILY AND MEDICAL LEAVE ACT —INTERFERENCE
Under FMLA, Kring was entitled to twelve (12) weeks of medical leave for any twelve (12) month period
By way of the Continued Employment Agreement Heritage was on notice of Kring taking an FMLA leave due to a serious health condition
The FMLA prohibits employers from retaliating against employees who exercise their FMLA rights
As a result Kring taking an FMLA leave and exercising his FMLA rights, Heritage retaliated against him and violated the FMLA in ways which include, but are not limited to, the following:
Retaliating against Kring because of his FMLA leave
Publicizing Kring taking a FMLA leave
Refusing to communicate with Kring about his health status during the leave
Refusing to allow Kring to return to work
Terminating his employment
Otherwise discriminating against Kring because of his FMLA leave.
There is a causal connection between Kring’s protected FMLA activity and Heritage’s adverse employment actions.
Heritage knowingly and deliberately engaged in intentional violations of the FMLA and further, acted with malice and/or with reckless indifference to Kring’s rights under the FMLA.
As a direct and proximate result of Defendants’ adverse actions, Kring has suffered damages
Demand For Trial By Jury
Dated: July 8, 2016
Related Information, other lawsuit and links:
Sommers Schwartz, P.C.
Law Offices
Daniel D. Swanson (P29288)
One Towne Square
Suite 1700
Southfield, MI 48076
(248) 355-0300
—
William “Bill” Kring
https://www.linkedin.com/in/bill-kring-1558b447
David Prince LPC, a licensed professional counsel
https://therapists.psychologytoday.com/rms/name/David_Prince_LPC_Traverse+City_Michigan_185933
U.S. District Court Judge Hon. Paul L. Maloney
http://www.miwd.uscourts.gov/content/judge-paul-l-maloney
https://en.wikipedia.org/wiki/Paul_Lewis_Maloney
http://www.mlive.com/news/kalamazoo/index.ssf/2009/01/eight_highrisk_former_federal.html
Mario Iacobelli (father)
CEO of Heritage Broadcasting
March 1982 – Present (34 years 5 months)
https://www.linkedin.com/in/mario-iacobelli-60a28721
M. Peter Iacobelli (son)
https://www.linkedin.com/in/peter-iacobell-87b7b791
News Director Kevin Dunaway
https://www.linkedin.com/in/kevin-dunaway-270a472
——-
Group email:
DSwanson@sommerspc.com, DKring@sommerspc.com, KStoops@sommerspc.com
Case No.
1:16-cv-00800-PLM-RSK
6/24/2016
Count 1: Interference — Violation of Family and Medical Leave Act
Count 2: Retaliation — Violation of Family and Medical Leave Act
United States District Court Western District Of Michigan
14-page
Two-count
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Other lawsuits:
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Heritage as plaintiff:
Breach of Fiduciary Duties
Wexford County
Filed: 11/23/2015
Heritage Broadcasting Company of Michigan
Heritage Broadcasting Company of Michigan Health Plan
vs
Blue Cross Blue Shield of Michigan
—
2:97-cv-70628-DPH
Heritage Broadcasting Group, Inc.
Heritage Broadcasting of North Carolina Group, Inc.
MICI Corp., et al
KEZB Broadcasting, Inc.
Mario Iacobelli
Pipeline Contracting, Inc.
Iacobelli Contracting, Inc.
Iacobelli Construction, Inc.
Warren Corporation
ICI Employees Defined Benefit Plan and Trust
ICI Corporation Employees Profit Sharing Plan and Trust
Warren Equipment Company, Inc.
v
Mager Monahan Scott, et al
Mager, Monahan, Scott and Alber, P. C.
Phil Alber
John M. Donaldson
Robert S. Diedrich
NBD Bank
A counterclaim was filed
U.S. District Judge Denise Page Hood, presiding
Case Summary
Date filed: 2/18/1997
Date closed: 9/29/2000
Filing error: rule 11 violation – stipulation Setting Aside Stay and Dismissing Cause by Mager, Monahan, Scott and Alber, P. C., Phil Alber, John M. Donaldson, Robert S. Diedrich
Date of last filing: 09/11/2006
Order setting aside stay and dismissing cause without prejudice
Signed by Honorable Denise Page Hood
Demand: $75,000
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Heritage as defendants:
1:96-cv-00728-GJQ
Spencer v. Heritage Broadcasting
U.S. District Court Judge Gordon J. Quist, presiding
Suit Filed: 9/09/1996
Suit terminated: 11/19/1996
Moved from federal to circuit court in Wexford County
Judge Quist “dismissed case with prejudice and without costs to either party “
Wexford County Circuit Court Case Number: 96-12366-PZ
No information on outcome
—
1:90-mc-00174-RAE
Another suit:
89-30091-11-LMC [USBC W Dist TX]
Southern Division
Filed: 11/14/1990
Disposition: Dismissed – Other
Kent County
Suit terminated: 11/14/1990
Filed by attorney Dale R. Rugge on behalf:
Plaintiffs:
Jack Rich
Official Secured Creditors Committee
vs
Kezb Inc
Heritage Broadcasting Group, Inc.
Rich, et al v. Official Secured, et al
U.S. District Judge Richard Alan Enslen, presiding
Filed: 11/14/1990
Entered: 11/15/1990
Certification of judgment for registration in another district (4 pages) with copy of “Order Granting Summary Judgment against Kezb, Inc. and Heritage Broadcasting Group, Inc.” who are to pay the Chapter 11 Bankruptcy Estate of Jack Rich the sum of $1,311,000.00, plus post judgment interest, attorneys’ fees and costs of court
Filed: 12/17/1990
Entered: 2/05/1991
Letter by counsel for plaintiff “requesting for the issuance of a Writ of Execution for the public sale of all property of Heritage Broadcasting Group, Inc., to effect satisfaction of a Judgment that was rendered by the U.S. Bankruptcy Court for the Western District of Texas, El Paso Division, on 6/19/90 in favor of plaintiffs Jack Rich and Official Secured Creditors’ Committee and against Heritage Broadcasting Group, Inc. in the amount of $1,311,000.00 plus $15,000.00 attorney’s fees, together w/costs and interest”
Filed: 1/25/1991
Entered: 2/05/1991
Writ of Execution issued as to Kezb, Inc., and Heritage Broadcasting Group, Inc. for the sale of all property of Heritage Broadcasting Group, Inc, 10360 W. 100 30th Avenue, Cadillac, MI 49601, to effect satisfaction of a Judgment in the amount of $1,311,000.00 plus costs and interest, and $15,000.00 in attorney’s fees
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Laws cited:
28 U.S.C. §1331
29 U.S.C. §2601 et seq
29 U.S.C. §2611(2)
29 U.S.C. §2611(4)
29 U.S.C. §2611(11)
29 U.S.C. §2612(e)(1)
29 U.S.C. §2612(a)(1)(D)
29 U.S.C. §2614
29 U.S.C. §2615
29 U.S.C. §2615(a)(1)
29 U.S.C. §2617(2)
29 U.S.C. §2617(a)(3)
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Changes Announced at Heritage Broadcasting
All of TV 9 & 10 News Releases
Heritage Broadcasting/WWTV-WWUP-TV, 9&10 News announces changes to the company structure with interim General Managers, a new General Sales Manager and National Sales Manager.
Kevin Dunaway and Pete Iacobelli will act as Co-General Managers.
Kevin Dunaway Vice President of News and Business has been with Heritage Broadcasting for the last 17 years. Pete Iacobelli has worked in various roles at Heritage Broadcasting for 15 years. William Kring, General Manger has announced a leave of absence.
David Karpicke will assume the role of General Sales Manager and remain as Local Sales Manager. David has worked in local sales at Heritage Broadcasting for over 20 years. He has been an integral member of the sales department with a proven, successful track record.
Lisa Froning has been promoted to National Sales Manager and will continue her role as Political Sales Manager. Lisa has held a number of key roles throughout her 10 years at Heritage Broadcasting.
“We are pleased to announce the promotions of these long term employees. Their new positions are well deserved,” says Mario Iacobelli, Owner Heritage Broadcasting.
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Upper Peninsula Breaking News by Greg Peterson 