BUFFALO, N.Y. (WKBW) — A lawsuit is accusing a Clarence-based development group of racist practices.
Former Clover Group employee, Peter Rizzo filed a lawsuit against the company and CEO Michael Joseph for wrongful termination and racist practices.
Nate McMurray, Special Counsel for Advocates for Justice, said his client, Rizzo, brought these racist practices to the attention of Clover leadership.
"And he said 'Why are we doing this? This is wrong.' and they essentially told him that's how we do it at all levels of the company," McMurray said.
In the lawsuit, Rizzo also alleges that Clover would not build apartment complexes in predominately Black neighborhoods.
"So, they were denying a huge part of our population access to housing," McMurray added.
The lawsuit also states that Clover Entities' executives called areas "Candanian Factor" if Black communities were living in at least a five-mile radius of a prospective development site and "when the reported Black population percentages were at or near 20 percent."
Prior to the lawsuit, Joseph was Chairman of the Roswell Park Comprehensive Cancer Center Board of Directors. He then resigned from this role, which is appointed by the governor.
In a statement to 7 News a spokesperson for Governor Kathy Hochul said:
Governor Hochul is committed to making Roswell Park a more equitable and inclusive institution for employees, patients and families. The Governor has accepted Michael Joseph's resignation from the Board of Directors and named Leecia Eve as Interim Chair.
Joseph still sits on the AKG Board of Directors. 7 News' Kristen Mirand did reach out to AKG about his position but has not heard back.
The lawsuit also states that one of the executives, Richard Greenspan, met with Rizzo to review a proposed development site. Greenspan "gestured to the Black population percentage on the demographics report, 'I don’t like that.' When Plaintiff asked Defendant Greenspan to clarify what 'that' was, Defendant Greenspan stated in response, 'Canadians.'"
McMurray also said that Rizzo recorded conversations with members who used the terms.
"Anyone who hears those tapes and hear the allegations in this lawsuit they would not want someone with those values leading such prominent and respected organizations," McMurray said.
Clover Management also runs several apartment complexes in the suburbs of Western New York. The Jill Joseph Tower is the only apartment that Clover runs in the city. It is in the University District, which Buffalo Council Member Rasheed Wyatt represents. He said management there has been seeking improvements, but nothing has changed. Following this lawsuit, Wyatt said he now understands why.
"The residents at Jill Joseph deserve better and so hopefully now he can focus on addressing those issues and maybe he can understand that diversity is very important," Wyatt said.
McMurray said since this lawsuit, more employees from Clover have come forward.
"I think what he wants to see change at Clover but also change in our region so we don't have that type of leadership in positions of power like that," he added.
On May 11, Erie County legislators weighed in on this lawsuit. A resolution calling for the termination of employers at Clover Group "that were heard in an audio recording allegedly making racist remarks in referencing company practices and police" passed unanimously.
But, lawmakers disagreed when another resolution urged the boards of AKG and Roswell to take "necessary steps" to suspend Joseph from his roles until an investigation into the allegations is completed by an independent third party. The resolution failed by a vote of 4-7, with all members of the Republican caucus voting "yes."
In a statement to 7 News' Kristen Mirand regarding the lawsuit, a Clover Group spokesperson said:
Clover does not make business decisions on the basis of any unlawful criteria. Clover did not violate the law in any way as Mr. Rizzo has falsely alleged. The company intends to defend itself vigorously. We believe that these allegations constitute a malicious effort by Mr. Rizzo to defame and disparage the company and its management in order to garner an unwarranted monetary payment. Because this matter is a pending litigation, prudence requires us to not make any further statement at this time.
