Fired IRSC CFO Sues College, Claims $75M Mismanagement Scheme and Retaliation

Marvin Pyles alleges whistleblower retaliation, defamation after raising alarms about false vendors, diverted donor funds, and a bloated ERP contract

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Fired IRSC CFO Sues College, Claims $75M Mismanagement Scheme and Retaliation
Illustration by Priya Okafor / TC Sentinel

The former chief financial officer of Indian River State College has filed a civil lawsuit against the Fort Pierce institution, its president, and its board of trustees, alleging he was fired in retaliation for exposing what he describes as a sweeping $75 million financial mismanagement scheme.

Marvin Pyles, who served as CFO and vice president of administration and finance at IRSC from April 2021 until his termination "for convenience" on April 19, 2024, filed the suit Feb. 25 in St. Lucie County Circuit Court. The complaint names IRSC President Timothy Moore and the college's board of trustees as defendants. It alleges whistleblower retaliation, defamation, and breach of contract.

"When I landed as the CFO, I discovered that it was a financial mess," Pyles said in a statement to CFO Dive. "The college had been operating in the red for years."

The complaint paints a detailed picture of alleged financial misconduct, including the improper funneling of state-funded nursing grants to the IRSC Foundation — a private 501(c)(3) — as well as the misuse of foundation and donor funds, false vendor accounts, and fraudulent purchase orders.

Among the most striking allegations: a new enterprise resource planning system approved by the board at a cost of $8 million that ultimately ballooned to between $26 million and $28 million. Pyles says his investigation into the cost overrun uncovered 175 purchase orders, each under $10,000 — a threshold that typically bypasses board review — routed to what he described as a fictitious vendor operating out of a mailbox.

A text message exchange cited in Pyles' press release, attributed to Moore, references "profligate credit card spending" and "trips to Europe for the whole family paid for… by foundation funds," referring to an unnamed employee.

The suit further alleges Moore made a damning statement at the time of Pyles' firing, reportedly saying in front of witnesses: "You had to keep pushing… You couldn't leave any of it alone… You keep bringing up all the issues."

If accurate, the quote would amount to an admission that protected disclosures drove the termination decision — a central element of any whistleblower retaliation claim under Florida law.

Pyles initially filed a grievance internally with IRSC before escalating to the Florida Commission on Human Relations. The commission declined to accept the complaint, ruling it lacked jurisdiction because IRSC is not an executive branch state agency. That procedural dead end appears to have pushed Pyles into civil court.

The IRSC board of trustees is appointed by the governor of Florida According to available information,. Moore and the college had not issued a public response to the lawsuit as of press time According to initial reports,.

The dollar figure at the center of the complaint — $75 million — comes from a text message cited in court filings, not from an independent audit According to available information,. The Sentinel was unable to independently verify the full scope of losses alleged.

IRSC is one of the largest institutions of higher education on the Treasure Coast, serving tens of thousands of students across multiple campuses in St. Lucie, Martin, Indian River, and Okeechobee counties. State and federal funds constitute a significant portion of its operating budget.

This story is developing. The Sentinel has submitted a public records request for relevant IRSC financial documents and board meeting minutes.

This article was generated with AI assistance using publicly available information. It was reviewed and approved by a human editor before publication. TC Sentinel uses AI writing tools in accordance with FTC guidelines.