Former CFO of Indian River State College Files Whistleblower Retaliation and Defamation Lawsuit

Quick Overview

• Marvin Pyles, former Chief Financial Officer of Indian River State College (IRSC), has filed a civil lawsuit against the college, President Timothy Moore, and the Board of Trustees, alleging whistleblower retaliation, defamation, and breach of contract. Pyles served as the college's CFO and Vice President of Administration and Finance starting in April 2021 until his termination on April 19, 2024, which was described as being for 'convenience'.
• The lawsuit, filed on February 25 in the Circuit Court of St. Lucie County, Florida, alleges that Pyles was retaliatorily terminated for raising concerns about misuse of funds.
• In a press release shared with CFO Dive on Tuesday, Pyles cited records of communications with Moore, including text message screenshots, detailing mismanagement. 'When I became CFO, I found a financial mess,' Pyles told CFO Dive, noting the college had been operating at a loss for years. During his tenure, he uncovered millions of dollars in fraud—described in a text exchange quoted in the press release as a '$75 million mismanagement scheme'—including fake vendors, purchase orders, and mismanagement of donor funds, he said.

Deep Dive

The complaint alleges that Pyles disclosed multiple instances of fraud to IRSC leadership, including the governor-appointed Board of Trustees, President Moore, and other administrators.

These instances include: the improper transfer of state-funded nursing grants to the nonprofit entity IRSC Foundation; violations of statutory duties related to the 'proper management and oversight of federal, state, and college funds,' as well as duties regarding the management of the IRSC Foundation and endowment funds; 'misfeasance, malfeasance, and improper diversion of state, foundation, and endowment funds' under the leadership of President Moore, the IRSC Board of Trustees, and the board of the 501(c)(3) IRSC Foundation; and, according to the complaint, multiple violations of Florida law regarding contracts with outside vendors and the rights of college employees.

One example Pyles pointed to was the rollout of a new ERP system, which the board approved at an implementation cost of $8 million but which ultimately 'ballooned to about $26 million to $28 million,' he told CFO Dive. While investigating the cost overrun, Pyles discovered fake vendors and purchase orders: in total, 'we submitted 175 purchase orders under $10,000 to a supposed vendor or partner company that was actually just a mailbox,' he said to CFO Dive.

'That's when I realized there were financial problems and financial irregularities,' Pyles said, noting that over the next year and a half, he kept finding 'more and more' issues.

According to the complaint, these disclosures ultimately led to hostility and adverse actions against Pyles, culminating in his termination in April 2024.

The lawsuit also alleges that at the time of termination, Moore stated in front of witnesses regarding Pyles' continued disclosures of fraud, waste, and abuse: 'You just have to keep pursuing... You can't let anything go... You always bring up all the issues.'

Text exchanges between Moore and Pyles contained details of fraud, including the use of foundation funds for personal travel.

'Credit card spending with no limits. The trip to Europe for the whole family... wait and see... paid for by foundation funds,' read a message from Moore to Pyles included in a screenshot in Tuesday's press release, referring to an unnamed employee.

This civil lawsuit follows Pyles' initial complaint to IRSC and his formal whistleblower complaint filed with the Florida Commission on Human Relations. According to the complaint, the Commission ultimately declined to hear the case, citing lack of jurisdiction and that the college is not a state agency in the executive branch.

In the lawsuit, Pyles seeks reinstatement to his position or an equivalent role, back pay, and up to $50,000 in damages for each count, as well as a jury trial, according to the complaint.

'Indian River State College does not comment on pending litigation,' an IRSC spokesperson said in an email statement to CFO Dive. 'Dr. Pyles has raised the same complaints on other occasions, and each time he has been unsuccessful.'