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Former Employee Sues Cafesjian For Back Pay

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  • Former Employee Sues Cafesjian For Back Pay

    FORMER EMPLOYEE SUES CAFESJIAN FOR BACK PAY
    DAN BROWNING

    Star Tribune
    http://www.startribune.com/local/142688495.html
    March 14, 2012 - 9:23 PM

    John Waters Jr. claims his aging boss has grown paranoid and owes
    him $5 million.

    Gerard Cafesjian is best known in Minnesota as an art aficionado and
    the primary benefactor who helped preserve the historic State Fair
    carousel that now bears his name in Como Park.

    The longtime director of Cafesjian's family foundation says in a
    federal lawsuit that Cafesjian was also a tough boss who has become
    increasingly paranoid, miserly and vindictive as he has aged --
    and who stiffed the employee out of more than $5 million in salary.

    John Joseph Waters Jr., who started working for Cafesjian when he was
    an executive at West Publishing, also claims that Cafesjian has tried
    to damage his reputation and avoid paying back wages and benefits by
    making unfounded allegations that Waters siphoned away Cafesjian's
    personal funds.

    Neither Waters, 55, of Eden Prairie, nor Cafesjian, 86, responded
    Wednesday to messages seeking comment. Cafesjian now lives in Naples,
    Fla.

    Waters filed the 47-page lawsuit without the help of an attorney. The
    suit, filed Tuesday in St. Paul, says that in 1994 he went to work
    for Cafesjian, who at the time oversaw sales and marketing at West
    Publishing.

    The suit says Cafesjian reaped about $300 million from his shares in
    West when Thomson Corp., now Thomson Reuters, bought the company in
    1996. Waters said he then went to work for Cafesjian's "family office"
    to manage his personal, business and philanthropic affairs.

    Waters said he deeply admired Cafesjian but that he could be a
    difficult and demanding boss.

    "Cafesjian was extremely self-centered, exhibited what appeared to me
    to be narcissistic characteristics and regularly exhibited delusions of
    grandeur," Waters says in the suit. "Cafesjian also suffered intense
    paranoia and frequent, almost daily, outbursts of anger."

    Waters said he grew tired of the abuse and quit in 2009, but continued
    doing odd tasks for Cafesjian until mid-2011.

    Waters said he represented Cafesjian in business deals in Armenia and
    elsewhere around the world. He said he served as Cafesjian's point
    man on a project to build a museum about the Armenian genocide. The
    museum, in Washington, D.C., was stalled by litigation in 2008.

    Waters said he learned in 2009 that Cafesjian had hired accountants
    and lawyers to go over the books of his various holdings. He said he
    learned that Cafesjian had made "outrageous and unfounded" allegations
    against him as well as other employees, but continued to rely on his
    services from until mid-2011.

    The suit says that Rick Ostrum, a former FBI supervisor now working
    as a private investigator for Waypoint Inc., in White Bear Lake,
    told Waters in July that his firm had been hired to investigate
    allegations that Waters had diverted cash from Cafesjian's personal
    checking account.

    In December, Waters said, he was contacted by the FBI and told it
    had opened an investigation.

    Waters alleges that Cafesjian has tried to threaten and harass him
    by contacting the FBI, by terminating contracts with firms "deemed
    to be friendly to Waters," by claiming to have Waters' phone tapped
    and by threatening other Cafesjian employees and associates who were
    planning to attend Waters' wedding.

    Waters also has requested a temporary restraining order barring
    Cafesjian from destroying documents and other data.

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