Knotted Numbers

​Bob Corliss, CEO of Robert Talbott, Inc., is accused of shady accounting by a former CFO.

Monterey-based luxury clothing brand Robert Talbott is being sued by a former executive who claims the chief executive officer used the company’s coffers as a personal piggy bank and engaged in questionable accounting practices.

In his suit, Robert Bernosky, former chief financial officer at Robert Talbott, alleges wrongful termination, defamation and unlawful business practices.

“He made complaints of unlawful practices and was fired for it,” says Harmeet Dhillon, Bernosky’s San Francisco-based attorney. “He’s essentially a whistle blower.”

While Robert Talbott, Inc. officials did not respond to requests for comment, Dhillon says the company has denied any wrongdoing.

Bernosky took the CFO position at Robert Talbott in late 2013 after two unsuccessful bids as Republican challenger to Assemblyman Luis Alejo in 2010 and 2012. Upon taking the reins of the company’s finances, Bernosky claims he was faced with a $10 million credit default and “numerous angry creditors.” He also claims the company understated its liabilities by $2.5 million.

At the same time, Bernosky alleges CEO (and Robert Talbott Motorsports’ primary race car driver) Bob Corliss spent indiscriminately – often for personal uses – on the company’s credit.

Robert Talbott, Inc. is a privately held company so its financial records are not available for public scrutiny.

Bernosky claims he was terminated in February 2015 after repeatedly questioning the company’s alleged dubious business practices.

Months after that, the company also sold its pioneering wine business, Talbott Vineyards, to Gallo for an undisclosed amount.

Bernosky is looking to recoup financial damages, as well as forcing the company to clean up its accounting practices. The company refused an out-of-court settlement last year.

The parties are scheduled to appear in court Aug. 26.

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