When Hercules’ city manager Nelson Oliva resigned, it wasn’t on the best of terms. In fact, circumstances that unfolded around the resignation resulted in the recall of members of the city council.

But now the city is fighting back, and its lawyers have targeted Oliva with a suit that alleges conflicts on interest and a failure of fiduciary duties.

Oliva, the founder and namesake of NEO Consulting dba. Affordable Housing Solutions Group, claimed to forfeit control in 2007 when he was hired as city manager. Oliva claimed that he transferred the bsiness to a partner and his emancipated daughters. But after new evidence cast those claims in doubt, the city began investigating. They discovered Oliva traveled to other cities to pitch NEO Consulting, and during meetings he used the words “us” and “we” when referring to the company. Also, his daughter hadn’t yet graduated high school when she was listed as the chief financial officer for the firm.

Now the city is seeking $3 million in damages, the equivalent of the contracts NEO received from Hercules during Oliva’s tenure as city manager.

From the Contra Costa Times:
Hercules is suing its former city manager and three daughters for about $3 million, alleging conflict of interest and breach of fiduciary duty in connection with the family company’s consulting contracts with the city, which topped $1 million a year before they were terminated last fiscal year.

The lawsuit, filed in Contra Costa Superior Court on Wednesday, asserts that Nelson E. Oliva did not give up control of the company, NEO Consulting Inc. dba Affordable Housing Solutions Group, when he became city manager in April 2007.

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