Former executive files lawsuit against Alex and Ani

MICHAEL MOTA, who filed a lawsuit against Alex and Ani on Tuesday in R.I. Superior Court alleging emotional distress, wrongful termination, false imprisonment and more, is seen in this photo featuring Seven Swords Media employees. Mota is in the middle. Seven Swords was dissolved by Alex and Ani last year. / COURTESY SEVEN SWORDS MEDIA
MICHAEL MOTA, who filed a lawsuit against Alex and Ani on Tuesday in R.I. Superior Court alleging emotional distress, wrongful termination, false imprisonment and more, is seen in this photo featuring Seven Swords Media employees. Mota is in the middle. Seven Swords was dissolved by Alex and Ani last year. / COURTESY SEVEN SWORDS MEDIA

(Updated 1:25 p.m.) PROVIDENCE – A former executive at a subsidiary of Alex and Ani has filed a lawsuit against the jewelry company, its founder and CEO Carolyn Rafaelian, its general counsel and Senior Vice President Suzanne Kelly and Seven Swords Media LLC alleging sexual discrimination, false imprisonment, creating a hostile work environment and emotional distress.
Michael Mota, in the 27-page lawsuit filed Tuesday by his lawyer Michael A. Kelly in R.I. Superior Court, is seeking damages, including attorney’s fees and other relief to be determined by the court.
In response to the lawsuit, a spokesman for Alex and Ani said Mota was terminated from Seven Swords more than a year ago when his job was eliminated due to restructuring.
“Even if he had not otherwise been terminated as part of the Seven Swords restructuring, there were numerous documented, legitimate and non-discriminatory grounds that supported his termination from Seven Swords, including his inappropriate and unprofessional management style.
“Mr. Mota’s allegations are both factually and legally wrong, and the company will vigorously defend this suit. Alex and Ani is confident that these baseless claims will ultimately be rejected by a judge or a jury,” Gregg Perry, Alex and Ani spokesman, said in a statement.

The 10-count complaint also alleges wrongful termination, computer theft, invasion of privacy, defamation and breach of contract.
It details how Mota was one of the original founders of the now-defunct Seven Swords, which was a subsidiary of Alex and Ani, and a top executive. He said he was promised by Giovanni Feroce, then-CEO of Alex and Ani, compensation stock options in Alex and Ani, but never received them.
Mota also said he provided all of the initial capital and credit to fund Seven Swords, and throughout his tenure at the company, his personal credit was utilized by Seven Swords for purchases and leases.
The lawsuit states that Mota became “increasingly concerned with certain irregularities and unlawful practices employed by defendant Rafaelian and her subordinates at Alex and Ani and Seven Swords.” Specifically, the lawsuit states that Rafaelian directed Seven Swords employees to destroy or disregard invoices for work performed on behalf of her personal ventures related to Belcourt Castle, Sakonnet Vineyards, Teas and Javas, and her residences.
It states that Mota complained to Rafaelian, Feroce and David Rozen, chief financial officer of Alex and Ani, that these services – which exceeded $500,000 – were draining the finances and resources of Seven Swords.
The lawsuit states that Rafaelian’s failure to acknowledge the “substantial amount of services provided to her personal ventures by Seven Swords,” as well as her directives to cancel invoices, “was a deliberate attempt to avoid payment of state and federal income taxes.”
The lawsuit also details how Mota facilitated the buyout of Seven Swords by GoGo Media Networks Inc. and how he was hired by GoGo Media as its chief revenue officer. To substitute the stock options he was originally promised, Mota was to receive $250,000 in GoGo Media stock and 1 million shares of GoGo Media stock after one year of employment. He also was to receive $100,000 once he began employment with the company.
Then the Seven Swords/GoGo Media transaction was cancelled. The lawsuit states that this was around the same time Feroce was terminated as CEO in March 2014.
“Mr. Feroce’s abrupt discharge was the beginning of a systematic termination of male executives and management at the company,” the lawsuit states, naming seven other men who were terminated.
When Mota in April reported concerns about money owed to Seven Swords for Rafaelian’s personal ventures, Alex and Ani, and Kelly “demanded” that he sign broad confidentiality, non-compete and non-disclosure agreements as a condition of employment; Mota had been an employee for three years at that time.
Then, when he did not return the agreement, he was “forcefully escorted by security personnel and physically confined in an office,” the lawsuit states. At that time, he was ordered to relinquish his personal computer and cell phone for an investigation by FTI Consulting, the suit states.
The lawsuit states Mota was in “fear of his physical safety” and his employment. He said he was threatened that he would not be able to leave the room unless he turned the items over.
Mota was terminated May 19, 2014, and offered a severance package. He also was asked to sign a general release and nondisclosure agreement in what he states was an attempt to “silence” him. He refused. Again, he said he was threatened to turn over the phone and computer, which he “reluctantly turned over.” The computer that was given back to him was a different model.

The lawsuit states Mota has “suffered substantial damages,” including the loss of a profitable business opportunity with GoGo Media, the refusal of stock as promised by Alex and Ani, damage to his personal and professional reputation, loss of employment and severe emotional and psychological distress. The lawsuit also provides a glimpse inside Alex and Ani.
“Mota was also present during many meetings in which Rafaelian would address the employees and explain that she was everyone’s ‘mother’ and that God had come to her to save us all. She would often bring her shaman, who would bless everyone, and she would bless the crystals that would be placed in the walls during construction and in the desk of all the employees,” the lawsuit states.
Mota, in the complaint, said the Rafaelian hired a scientist to infuse “positive energy” into the product, which created a “cult-like” environment.
“It was known across the company that you were to never question or make comments about these practices or you would be terminated,” the lawsuit stated.

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