Rob Arkley’s True Character Unveiled: Withholding Promised Wages from a Former Employee
Allan Grushkin’s quest to recover $2 million from Rob Arkley exposes a disturbing glimpse into the true character of the greedy billionaire and founder/CEO of Security National. Grushkin, who served as a senior vice president at Arkley’s company, was issued a $2 million promissory note upon his departure in 2007. This note, which Grushkin claims was compensation for his extensive work on various real estate deals, was instead dismissed by Arkley as “a gratuitous note to a friend,” with Arkley vowing, “He [Grushkin] will get what he deserves: Next to nothing.”
A Broken Promise
Security National, like many real estate investment firms at the time, became heavily indebted following the real estate market collapse. Grushkin, along with numerous other creditors, found himself in a prolonged struggle for payment. In October 2011, ten companies under Security National’s vast corporate umbrella declared bankruptcy, owing creditors nearly $160 million.
Despite the financial turmoil, Grushkin persistently requested payments on his $2 million note, sending numerous emails and making countless phone calls to company employees. Security National managed a few payments in 2010 and some wire transfers in 2012, but then the payments stopped altogether. Grushkin is still owed over $1.7 million.
The Evidence
Emails and court filings reveal a contentious back-and-forth between Grushkin and John Piland, Security National’s Chief Financial Officer. By June 2010, Piland’s assistant had resorted to calling Grushkin derogatory names in internal emails, reflecting the company’s disdain for his persistent inquiries.
From: Allan Grushkin
To: Piland, John
Subject:
I have called and called, please give me a response.
AG
Piland’s cryptic response highlighted the chaos within Security National:
From: Piland, John
To: Allan Grushkin
Subject: RE:
Will call you this evening. Lehman, BofA, Kramer, US Bank, I can’t even get time with my daughters while they are here in BR.
Grushkin’s attempts to get clarity and resolution continued to be met with vague and dismissive responses. Piland’s reply to Grushkin’s inquiries about payments was ominous and unhelpful:
The world blew up.
John Piland
The Human Cost
As the years dragged on, the emails from Grushkin and his wife grew more desperate, reflecting the financial strain and personal hardship caused by Arkley’s refusal to honor his commitment. Nancy Grushkin’s plea in February 2013 was a stark reflection of their dire situation:
From: Nancy Grushkin
To: Piland, John
Subject: Dire Situation
… Health concerns are being put on hold and financial issues are reeling out of control because we’ve been forced to raid our 401k over the last three years. As an accountant, you understand what we are facing.
Despite these pleas, Security National remained unresponsive, prioritizing their negotiations with major creditors over the rightful payment to Grushkin.
Arkley’s True Colors
Rob Arkley’s response to Grushkin’s persistent attempts to collect his owed money revealed a shocking lack of empathy and integrity. Arkley sent a series of emails that were not only dismissive but also threatening and belittling.
In a September 2013 email to former vice presidents and his own family, Arkley displayed his disdain for Grushkin’s efforts:
From: Arkley, Rob
Sent: Thu, Sep 19, 2013 at 11:12 AM
To: Multiple Recipients
Cc: Multiple Recipients
Dear All,
Today I received a demand letter from Allan Grushkin’s attorney demanding payment. Indicating that [he] will file lawsuit against SN Properties Holding, LLC. It showed no class, but then again, what is new? I am informing you, because perhaps some of you may want to join Allan. I can assure you that it will not speed up your payment, but it is your choice. … I can pay all of you in the order that I determine. Some of you [sic]…
Arkley’s disdain for Grushkin’s attempts to reclaim his money reached new heights in a subsequent email:
From: Arkley, Rob
Sent: Mon, Sep 23, 2013 at 6:06AM
To: Multiple Recipients
Cc: Multiple Recipients
Dear Leslie and Bill,
Please reach out to Allan’s lawyer and provide him with a copy of the Alaska charging order statute. … He will get what he deserves: Next to nothing.
vty,
Rob
Arkley’s emails reveal a man more concerned with his own wealth and power than with honoring his commitments or caring for the people who helped build his business.
The Legal Battle
Grushkin’s persistence finally led to a legal victory in July, with a court ruling that awarded him $1,737,420 from Security National. However, Arkley’s attorneys swiftly moved to vacate the judgment, arguing jurisdictional issues based on the company’s registration in Alaska and the residency of the Arkleys’ daughter, a co-member/owner of the company.
In a move that further highlighted Arkley’s ruthless tactics, Security National sued Grushkin personally, accusing him of defamation and intentional interference with business relations. This lawsuit appears to be a vindictive attempt to punish Grushkin for daring to seek what he was rightfully owed.
Conclusion
Rob Arkley’s actions in withholding promised wages from Allan Grushkin are a damning indictment of his character. His blatant disregard for the financial and personal well-being of a former employee, coupled with his attempts to intimidate and belittle Grushkin, reveal a man driven by greed and a lack of integrity.
This case should serve as a stark warning to anyone considering doing business with Security National and its founder. It is a reminder that, in the world of corporate finance, even those with long-standing relationships and significant contributions can be callously discarded in the pursuit of profit.
For Allan Grushkin, the battle continues, but his perseverance stands as a testament to the importance of holding those in power accountable for their actions.