A local security contractor and lobbyist who was the subject of an Atlanta corruption investigation last year is suing the city and its inspector general, Shannon Manigault, for allegedly subpoenaing his bank records illegally.
The lawsuit filed in federal court Thursday on behalf of security contractor Bernie Tokarz argues that Manigault’s office violated Tokarz’s privacy rights and exceeded its legal authority last year when it ordered his bank to provide his financial records without notifying him.
The suit is the latest development in a monthslong battle between the OIG and elected leaders at City Hall over what the 5-year-old office is allowed to do in its mission to uncover waste, fraud, and corruption.
Tokarz, who previously served as a volunteer finance chair for Atlanta City Council member Michael Julian Bond, is the principal agent for several companies that have done business with the city of Atlanta, according to the findings of an OIG investigation report released in August. One of those companies, Cloverhurst Strategies LLC, was previously awarded a contract with the city of Atlanta, the report stated.
Tokarz’s attorney, Stephen Katz, told Fox 5 Atlanta in December that his client has a $3 million contract with the city to provide security at municipal parks and Grady Memorial Hospital.
The findings from the OIG probe determined that Tokarz didn’t disclose his “personal and financial relationships” with several city officials during a contract bidding process and recommended that the city cease doing business with Cloverhurst.
Katz accused the OIG of filing illegal subpoenas during its investigation.
“These actions resulted in unauthorized searches and seizures, violating Tokarz’s Fourth Amendment rights,” Katz said in a statement provided to Capital B Atlanta.
Manigault’s supporters argue her tactics are standard practice for independent corruption watchdogs like her across the country and are needed in a city where abuses of power have been rampant in previous years.
Critics contend some of the OIG’s actions are illegal in Georgia and have violated the rights of city employees who are operating under a culture of fear.
Bond told Capital B Atlanta that Manigault has taken a leave of absence. Manigault couldn’t be reached for comment on Thursday. A spokesperson for Manigault’s office declined to confirm or deny she’s taken leave.
“Our office does not comment on information that is deemed private,” the spokesperson said.
Manigault’s office also addressed speculation that she may be quitting her job.
“Inspector General Manigault continues to lead this agency, and remains dedicated to serving City of Atlanta taxpayers,” the spokesperson said.
“OIG owns its missteps”
City officials previously raised concerns about the OIG issuing subpoenas for bank and other financial records. Manigault’s office on Tuesday received a cease-and-desist letter from city attorney Patrise Perkins-Hooker, who demanded the OIG stop adding notices to its subpoenas asking recipients not to disclose the existence of such subpoena orders.
The notice violates Georgia law, according to Perkins-Hooker’s letter, which says the OIG has broken the law at least 50 times.
“The failure to provide notice to the depositor … is not legal and it places the City of Atlanta at risk for potential liability for this intentional violation of Georgia’s Banking and Finance Laws,” Perkins-Hooker wrote on Monday.
“You still have the power to issue subpoenas,” she noted later, “but this power must be used in accordance with state and federal law.”
Manigault’s office acknowledged potentially violating state law in an email to Capital B Atlanta, but said that it issues subpoenas “in good faith” based on the powers detailed in the city charter, adding that she will work to comply with state law as outlined in the future.
She asked for an in-house attorney to help ensure she’s not exceeding her legal authority.
“Upon a review of the state law, OIG immediately initiated measures to comply and preserve account holder protections,” a spokesperson for Manigault’s office told Capital B Atlanta via email on Tuesday. “Accountability is important and OIG owns its missteps.”
“No one is above the law”
Mayor Andre Dickens has spent months leading the push for City Council to rein in the OIG in response to complaints from municipal employees and administrators who fear their legal rights have been violated during OIG investigations.
In November, the mayor accused Manigault’s office of accidentally leaking his Social Security information online and buying “spy pins and nanny cams” to set up at City Hall. Manigault’s office has acknowledged purchasing such cameras, but repeatedly denied using them in its investigations.
“Throughout this process, we have continually said that while there is no place for illegal or unethical behavior in the City of Atlanta, there also is no place for the OIG to conduct its business outside of the parameters set by law and policy,” Odie Donald II, Dickens’ chief of staff, wrote in an emailed statement on Tuesday. “No one is above the law. How the OIG conducts its duties is equally important as to why it exists in the first place.”
The written exchange came the same day that Atlanta City Council advanced an ordinance designed to clarify the limits of Manigault’s investigative powers. The Committee on Council is set to vet the ordinance during its next meeting at 11 a.m. on Feb. 17 before the full council adopts or rejects it later the same day.
Manigault has been on the job in Atlanta since December 2020. She’s taken heat from Dickens and city employee union leaders who argue she’s exceeded her legal authority and created a culture of fear among municipal workers who aren’t sure what their rights are when they’re approached by OIG investigators.
“I’m very well familiar with what the OIG is supposed to stand for, but somehow they’ve gotten out of hand,” Gina Pagnotta, president of Atlanta’s local Professional Association for City Employees union, told Atlanta City Council members in December.
Manigault doubled down on accusing Dickens and his allies of working to undermine anti-corruption efforts to avoid scrutiny during a Jan. 30 town hall meeting organized by a coalition of progressive advocacy groups, including the Southern Center for Human Rights, Working Families Power, and the NAACP Legal Defense Fund, which all sought to build support for Manigault in efforts to promote greater transparency and accountability in Atlanta municipal government.
“There’s a culture that’s here that’s, ‘Go along, get along,’” Manigault told attendees at the meeting, describing remarks she said she’s heard from other city officials who have voiced support for her efforts.
“The idea is, ‘This is the way we do things [in Atlanta],’” Manigault continued. “Yes, I’m going to give a job to my brother. Yes, I’m going to give an opportunity to this guy who went to my high school. That is so built into the experience here. … [OIG work] is disrupting the norm here. And the reaction to that has been strong.”
