Economics/Class Relations

After accusations of forcing employees to visit strip clubs and brothels, Servotronics CEO resigns

Geoff Herbert,

An Upstate New York manufacturer’s top executive has resigned after being accused of forcing his employees to visit strip clubs and brothels, according to a new report.

Servotronics Inc., located in Elma, N.Y., announced Monday that Kenneth D. Trbovich has resigned as president and CEO and been removed as chairman of the board after a nearly six-month-long internal investigation identified grounds for his termination.

The Buffalo News reports Trbovich was put on administrative leave June 8 and an internal investigation was launched after a then-employee filed a lawsuit in State Supreme Court in Buffalo, alleging that Trbovich forced male employees to visit strip clubs and “engage” with prostitutes at brothels while on business trips paid for by Servotronics and its subsidiaries. Trbovich was also accused of sexually harassing female contractors and using his company expense account to pay for trips with women.

Servotronics said an investigation by an independent, outside counsel concluded the company had grounds to fire Trbovich. He resigned a day before a board meeting was scheduled Dec. 22.

Servotronics said its current Chief Operating Officer James C. Takacs will assume the responsibilities of the company president and CEO while the board of directors searches for a permanent replacement for Trbovich.


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