A former employee of the Chicago Public Schools has filed a lawsuit against the Board of Education of the City of Chicago, alleging wrongful termination and defamation. The complaint was filed by Nichelle Nemo in the District Court for the Northern District of Illinois on July 9, 2024.
Nichelle Nemo, who served as a Senior Windows Engineer at CPS from October 2018 to July 2023, claims she was wrongfully terminated following an investigation by the CPS Office of Inspector General (OIG) into her Paycheck Protection Program (PPP) loan. According to court documents, Nemo received a $20,832 PPP loan in May 2021 to support her businesses affected by the COVID-19 pandemic. However, in October 2022, the OIG began investigating allegations that Nemo had fraudulently inflated her gross income on the loan application.
The OIG's investigation led to a series of interviews and document submissions by Nemo. She provided evidence showing that she managed multiple businesses, including Foolaro Inc., which operated under different names such as The Seafood Company and Mini Donut Café. Despite this evidence, the OIG concluded that Nemo could not substantiate her eligibility for the PPP loan and recommended her termination with a "Do Not Hire" designation in June 2023.
Nemo's lawsuit argues that the OIG's investigation was negligent and selective, ignoring crucial evidence that supported her claims. She alleges that false statements were made about her businesses' operational status and financial records. For instance, the OIG report incorrectly stated that Foolaro Inc. was dissolved in 2019 when it was merely temporarily inactive due to a missed annual report filing.
As a result of these findings, Nemo asserts she suffered emotional distress, public stigma, and loss of income. Her complaint includes counts for violation of 42 U.S.C. §1983 for deprivation of constitutional rights, defamation under Illinois state law, common law wrongful termination, and negligent infliction of emotional distress. She seeks compensatory damages for lost income and emotional suffering, punitive damages to deter future misconduct by CPS officials, attorney’s fees, and other relief deemed appropriate by the court.
Representing Nemo are attorneys Brad Evan Karlin from Karlin Legal LLC and Joshua N. Karmel from Karmel and Torres. The case is being overseen by Judge [Name] under Case ID: 1:24-cv-05795.