Judge says York didn’t have to pay Markicevic a $700,000 severance package
In a court ruling made in the York University vs. Michael Markicevic case on January 22, a judge said York had options that wouldn’t have required the university pay Markicevic $700,000 in a severance deal when they suspected him of fraud.
According to the Toronto Star, Justice David Brown of the Ontario Superior Court of Justice said during the trial that when Markicevic was let go in February 2010, there were many alternatives to paying out the severance package.
Joanne Rider of York media says when Markicevic was terminated in early 2010, the university had no substantiated evidence tying him to any fraud or impropriety.
“The severance paid to Mr. Markicevic was determined to be appropriate based on what was known to York at that time,” says Rider.
Markicevic, fired without cause, was paid around $693,000 under his employment contract, which included a $86,000 “performance” bonus.
According to the Star, Markicevic, bought a small aircraft after receiving his severance package in 2010.
He, along with two dozen others, is now being sued by York for over $1.23 million for his alleged role in a conspiracy involving a phony invoice scheme, which is said to have taken place between 2007 and 2009.
In response to the Toronto Star’s article regarding the January 22 ruling, York’s Secretary and General Counsel Harriet Lewis wrote a statement to the York community, informing them of the decisions made in court that day.
According to Lewis, Brown ruled against the motion Markicevic filed to have the whole case dismissed.
York has filed a motion, requesting a “sweeping freeze,” or Mareva injunction, to freeze Markicevic’s assets to prevent them from disappearing and adversely affecting the university’s ability to recover its losses if it wins the lawsuit.
The university successfully obtained a “certificate of pending litigation” against real estate owned by members of the Markicevic family until the trial concludes, according to Lewis.
In her note to the York community, Lewis wrotes, “The significance of the certificate is that the real estate assets cannot be sold.”
In addition to being sued by York, Markicevic and one other former executive are being charged by Toronto Police Services with criminal fraud and laundering the proceeds of crime in connection with the same alleged phony invoice scheme.
News Department
