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DRAPER — EnergySolutions is suing a former vice president for allegedly engaging in a fraudulent business deal, but he claims the company is simply trying to bully and squeeze profits from a contractor.
A lawsuit filed Thursday in the 3rd District Court alleges Bryan Melchior, a former vice president of sales for EnergySolutions, had a relationship "extending beyond the normal customer relationship" with a managing member of Ingen VK while negotiating a disposal agreement with the company.
They're trying to squeeze everyone out and steal the profits for themselves.
–Bryan Melchior
Melchior admits Paul Vankomen, Draper, a managing member of Ingen VK, is a friend, but denied any wrongdoing and said allegations in the lawsuit are "absolutely false" and "slanderous."
"(EnergySolutions doesn't) like the deal they made with (Ingen VK)," Melchior said. "They're trying to squeeze everyone out and steal the profits for themselves."
Melchior said EnergySolutions is competing for work with Ingen VK and the lawsuit is an attempt to "strong arm the little guy." He said EnergySolutions is hurting for profits, referencing a report EnergySolutions released Thursday indicating a net loss of $22 million in 2010 compared to a net gain of $50.8 million in 2009.
EnergySolutions did not discover the alleged fraudulent activity from June 2009 until March 2011, the lawsuit states.
Melchior said EnergySolutions fired him in November 2009, five months after the alleged fraudulent business deal.
EnergySolutions alleges Melchior secretly modified the contract with Ingen VK after getting signatures from EnergySolutions legal department approving the deal. The lawsuit claims Melchior was likely to profit from the "below market" contract because it allows Ingen VK to market EnergySolutions waste removal services at below market pricing.
The complaint also states Melchior never disclosed his relationship with Ingen to EngergySolutions.
In a letter dated March 23, 2011, EnergySolutions notified Ingen VK that the disposal agreement was revoked and terminated. Two days later Ingen VK responded in letter saying EnergySolutions has no right to terminate the agreement.
EnergySolutions declined to comment on its complaint, in which it asks the court to terminate its contract with Ingen VK and seeks compensation for damages caused by the contract.
Melchior said he plans to countersue.
Email:sgarn@ksl.com
