REPRESENTED HERE FROM:
Jill McGlone, the former Community Services Board staffer who stayed on the payroll for 12 years but did not work, filed for Chapter 7 bankruptcy protection Monday. If granted, it would thwart the city from recouping any of the money the agency paid her.
The former administrative assistant filed a voluntary petition in federal bankruptcy court. It listed $44,497.40 from a Norfolk Circuit Court judgment as one of her outstanding obligations. The debt, according to her petition, was incurred this month, even though a judge hasn’t determined that she owes the city any money.
Her request comes two days before the city and McGlone were scheduled for a court hearing on the issue.
A Norfolk judge has dismissed claims against four other employees from whom the city wanted to collect money. The judge has also limited the time for which the city can try to collect back pay from McGlone. The city originally sought $320,000, which is the amount the CSB had paid her over 12 years.
The nearly $45,000 that McGlone listed as a debt with the CSB includes her salary and benefits paid after April 11, 2008.
In her bankruptcy filing, McGlone reported total liabilities of $237,662, with about 9 percent of the debt related to credit cards. McGlone’s most significant claim was the $154,000 that she and her husband owe on their Norvella Heights home.
The McGlones intend to retain their home, according to Monday’s petition.
McGlone was suspended from the CSB in 1998 after being accused of bringing to work a box-cutter, which officials called a weapon, according to documents the The Virginian-Pilot previously obtained from the agency. She tried to get reinstated but was not allowed, the documents show.
She was fired in May 2010, shortly after the agency’s new executive director learned of the payments to her. The city also forced out five employees who either formerly supervised McGlone or who worked at the agency at that time.
John W. Bonney, who is representing McGlone in the bankruptcy and Norfolk Circuit Court cases, wrote in an email Monday that the pending state court action would be stayed under the U.S. bankruptcy code and that “her debt, if any to the city of Norfolk, will be discharged.”
McGlone listed Victoria’s Secret as her employer for the past four years and her husband as being on disability.
Deputy City Attorney Adam Melita declined to comment on McGlone’s bankruptcy filing. City spokeswoman Lori Crouch said the city is awaiting the bankruptcy court’s decision.
The CSB, which previously got a significant portion of its budget from the city, became a city department last month. It provides mental health care and drug treatment to the community’s poor.
Kenny Bryant, chairman of the CSB’s board, said the news of McGlone’s bankruptcy filing was disappointing.
“The taxpayers have a right to get their money back,” Bryant said.
Four of the employees who were forced out after the scandal became public have filed defamation lawsuits against former agency director Maureen Womack.
Those lawsuits are pending in Norfolk Circuit Court.
A special grand jury was impaneled in February and continues to investigate whether a criminal offense was committed.