IPA to finally settle sex-harassment suit against Buffalo Grove business

With a trial days away, Buffalo Grove-based International Profit Associates agreed to a tentative settlement that would end nine years of federal litigation over charges women employees were assaulted, insulted, propositioned for sex and punished if they said no.

"Yeah, I'm glad it's finally at an end. It's been a long time," said Marion Townson of Des Plaines, one of the original women to file a complaint with the federal Equal Employment Opportunity Commission in 1998. After an extensive investigation, the EEOC filed suit against IPA in June 2001.

She and others said one of the terms of the settlement is that it can't be talked about. "I can't discuss anything," Townson said. But she sounded content with the terms, saying, "I'm happy there's a settlement."

EEOC attorney Diane Smason said she could not comment on a settlement at this time. "If the case does settle," she added, "I expect it will be in a few weeks."

The settlement was firm enough to halt the trial, which had begun jury selection, and a status hearing is scheduled for July 27 before U.S. District Court Judge Joan Gottschall.

In court documents, the EEOC charged IPA with "a wide spectrum of severe sexual harassment," ranging "from demeaning insults to sexual assault, and everything in between." According to the main complaint: "Women at IPA were regularly propositioned for sex, offered job benefits contingent on the performance of sexual acts (and threatened with negative consequences if they did not agree), and even offered money for sex. More than 40 women reported being sexually assaulted in one manner or another - the behavior complained of consists of everything from slapping, pinching, touching and grabbing to outright attempted rape. Women were regularly subjected to offensive sexual comments in the workplace, including explicit observations regarding their appearance and sexual jokes. Sexually offensive and derogatory language was commonly used by male employees, both in general and directed at female employees. Male employees exposed themselves to female employees. Strippers and prostitutes were hired to perform for male employees' birthday parties at IPA's offices during business hours. In short, the EEOC alleges that severe sexual harassment was part of the culture at IPA."

The suit charged the harassment was "pervasive and existed at all levels and departments of the company," and that "a great deal of the most abhorrent conduct ... was allegedly committed by IPA's upper-level management."

It concluded, "Female employees at IPA were objectified and mistreated from the top down, company wide."

Over the years, IPA attorneys used an almost infinite number of arguments and motions to delay the case, but it finally made it to court this month - resulting in an almost immediate settlement.

IPA, owner John Burgess of North Barrington, and several other Buffalo Grove-based companies he owns - International Tax Advisors Inc., Integrated Business Analysis Inc. and Accountancy Associates LLC - also were sued in April 2009 by Illinois Attorney General Lisa Madigan on charges they cheated hundreds of small-business clients by charging for management consulting services the companies failed to provide.

IPA attorneys did not reply to requests for comment.