Under Rubin, a ‘hostile’ workplace
Probe finds state’s top financial regulator violated sexual harassment and discrimination policies
TALLAHASSEE – Ronald Rubin, Florida’s top financial regulator, made a “pattern of comments” to employees on sex and personal relationships that “had the effect of creating an intimidating, hostile and offensive work environment,” an investigation into his conduct found.
The report from the Inspector General for the Office of Financial Regulation released Wednesday found Rubin violated the agency’s sexual harassment and discrimination policies by: calling a woman the “c-word” in front of other employees; talking to an employee about the sexual history of a family member; and offering an employee a key to his home in Washington, D.C., among other allegations.
Furthermore, “Commissioner Rubin’s misuse of his subordinate staff’s time and resources demonstrated a preference for the accomplishment of his own personal objectives over that of the interests of the public and agency,” the report stated. “His comments toward employees in both one-on-one and group settings failed to show courtesy, consideration or respect.”
It is now up to the Florida Cabinet, which includes Gov. Ron DeSantis, Chief Financial Officer Jimmy Patronis, Attorney General Ashley Moody and Agriculture Commissioner Nikki Fried to decide whether to fire Rubin. A Cabinet meeting is scheduled for July 25 but it’s unclear if Rubin’s removal will be on the agenda.
The report came out as an Orlando Sentinel review of more than 5,600 of Rubin’s emails showed that he spent more than $7,000 on travel and other expenses, took an unusual interest in a GOP donor’s desire to set up a credit union and dealt with staff morale and personnel problems — including rats in the Tallahassee office — during his three months in office before his suspension.
Rubin’s Office of Financial Regulation, with an annual budget of $41.3 million and more than 350 employees who oversee the finan
cial industry, regulate banks and conduct investigations into financial crimes, is stuck in a quagmire, beset with low morale, high turnover and instability at the top that’s lasted for more than a year.
The emails obtained through a public records request by the Sentinel show Rubin ran up nearly $7,000 in expenses, mostly related to travel – hotel stays, airfare and rental cars - to Washington, D.C., for conferences and meetings with lawmakers and to OFR offices in Miami, Orlando and Tampa.
Rubin asked top OFR staffers to analyze a plan for a new credit union at the behest of Bernie Navarro, a Republican fundraiser and the president of Benworth Capital, a Miami-based residential and commercial lender.
“I asked (Jeremy Smith, OFR financial institutions director), to draft a detailed memo describing the bases for his conclusions … so that your lawyers would be able to identify any potential flaws in his analysis that might unnecessarily prevent you from proceeding with your plan,” Rubin wrote to Navarro in a March 19 email. “Please let me know if your lawyers disagree with Jeremy’s legal analysis, and I will determine whose opinion is correct.”
The status of Navarro’s credit union plan is unclear. He didn’t respond to an email seeking comment Wednesday. An OFR spokeswoman said he never filed any paperwork with the agency to start the process but also said she was unaware of any similar legal analysis being done for anyone before.
Navarro is a veteran GOP fundraiser who served as finance director for U.S. Sen. Marco Rubio’s presidential run in 2016. His influence within OFR is pervasive, and while it predates Rubin’s tenure, which began in February, emails show he routinely asked Rubin and top OFR staffers for help.
The emails show Navarro set up lunch with Rubio and Rubin; invited Rubin to speak at Miami-Dade College, where he’s a board member; pushed legislation to further crack down on unlicensed lending; asked for budget funds for a public awareness campaign of existing regulations against unlicensed lenders and bemoaned the hurdles to starting a new credit union – namely, $8 million in equity.
A message left with Rubin’s spokesman, Seth Gordon, was not returned Wednesday.
The emails also revealed that two staffers from different offices – one in Miami and another in Tallahassee – wrote to Rubin after he took the helm to encourage him to turn around the low morale at the agency. “At times, we the ‘troops on the ground” don’t have the upper management’s backing. We have people that care and want to
make a difference!” one employee wrote.
It’s something Rubin looked to address, but he seemed unable to do so. Five top-level staffers left in two months following his hire, although at least two of those were due to retirement. But the report released Wednesday noted that since Rubin was hired Feb. 26, 35 employees have left OFR.
Among those who left was Kevin Maslowski, a financial investigator who had signed an arrest affidavit in one recently publicized case of securities fraud in Sarasota. Maslowski was fired for using homophobic and racial slurs in front of other employees, despite receiving a warning for similar behavior in January.
“You were reminded that you are expected to conduct yourself in a manner that will not bring discredit or embarrassment to the state,” Rubin wrote to Maslowski in a March 15 letter.
Rubin and OFR workers at the Tallahassee branch also had to deal with rats – rodents, not leakers.
“We are experiencing an issue with rodents in the building,” a May 2 email from Tammy Thomas, OFR safety officer stated. An OFR spokeswoman clarified Wednesday they were rats, but didn’t specify how many there were. The issue had been taken care of, she
said.
Rubin is at the center of a Tallahassee political storm, with sexual harassment allegations lodged against him and counter charges from him of political strongarm tactics that have spawned a slew of lawsuits.
Patronis, who originally pushed to hire Rubin, is now calling for his ouster, as Rubin claims Patronis helped orchestrate the harassment allegations against him as payback for his refusal to hire Kim Grippa as OFR general counsel.
Patronis suspended Rubin on May 10, after a complaint was filed against him. Days later, Patronis’ office released two more complaints with the names of the alleged victims redacted. The complaints came from two employees and one person who interviewed for a job as OFR’s general counsel with Rubin.
Rubin was suspended with pay – he earns $166,000 a year – while the inspector general investigated the claims.
Rubin disputed all of the charges against him, and asserted it was part of a plot to remove him because he wouldn’t hire Grippa, the woman who interviewed for the general counsel position. Grippa is the ex-wife of a former Leon County commissioner who is a friend with Patronis.
Rubin said she wasn’t qualified for the job, but the two give differing accounts of their meeting. Grippa alleges he was rude and brought up awkward subjects such as the sexual history of his parents. Rubin said she was unqualified, unprepared for the interview and had an arrogant attitude that assumed the job was hers.
Rubin also released text messages between him and Paul Mitchell, a high-powered insurance lobbyist who helped get Rubin the OFR job. They show Mitchell pressured Rubin to hire Grippa and urged him to resign before the sexual harassment allegations were made public, even drafting a resignation letter for Rubin to sign.
In a lawsuit filed last month against Mitchell in Miami-Dade Circuit Court, Rubin alleges Mitchell asked his father for a $1 million political contribution to Patronis in July 2018, when the opening was first posted.