A woman who is suing the founder of the former Leo’s Stereo chain, alleging she was vastly underpaid for hours worked caring for his elderly wife and that he wrongfully fired her in 2022, says in new court papers that she lost her job because she did not agree to his sexual demands.
Aurice Veloso’s Beverly Hills Superior Court lawsuit allegations against Leo David include wrongful termination, sex discrimination and sexual harassment. She seeks unspecified compensatory and punitive damages as well as payment for the purchase of a home and for costs associated with becoming a registered nurse and later a doctor.
“David informed me that all his employees sleep with him,” Veloso, 50, says in a sworn declaration filed Wednesday. “Because I did not, I believe he targeted me for harassment and retaliation, including termination of my employment.”
Employees and women who do have sex with David do not get abused, sexually harassed or fired by David, who often yelled disrespectful things about the plaintiff to guests, including “Aurice must be on her period,” Veloso says.
David’s “scorched earth litigation strategy” has caused Veloso “heavy financial, psychological and emotional burdens I bear every day,” Veloso says. She further alleges that her complaints about not being paid overtime owed to her also contributed to her losing her job.
David, now 96, could not be immediately reached for comment.
Veloso’s declaration was filed as part of her opposition to an effort by management at two companies she also sued, XCVI LLC and Construction for Less Inc., to obtain dismissal of claims she filed against the entities. Veloso asserts that the two firms, together with David, acted as her joint employers, controlling the terms of her employment and compensation as well as paying her wages.
Attorneys representing the companies allege in their court papers that David controlled Veloso’s employment, including her wages, hours, overtime, working conditions, duties and job responsibilities. The company lawyers say David fired Veloso in September because he believed she had blocked a contact on his iPhone.
A hearing on the companies’ motion is scheduled May 23 before Judge Edward Moreton Jr.
David made his fortune as owner of Leo’s Stereo, which at its peak was a chain of 45 consumer electronics stores offering home audio equipment and car stereos and speakers. The company filed for bankruptcy in 1991.
David claims to have cash assets of $50 million and real estate holdings, a private jet and other holdings worth many more millions of dollars, according to the suit filed Nov. 3.
Along with the Los Angeles residence David shared with his late wife, Ruth David, he also maintained dwellings at the Balboa Yacht Club, the Palm Valley Country Club in Palm Desert, a Wilshire Marquis penthouse, a yacht and a private jet, the suit states.
Veloso, a certified medical assistant, was hired in December 2009 to care for Ruth David, whose physical and mental abilities declined to the point she eventually needed 24-hour assistance before she died in August 2020 at age 98, the suit states.
In February 2011, David changed Veloso’s work status to state she was a customer service employee of XCVI, a clothing manufacturer and retailer, even as she continued being his wife’s caregiver, the suit states. David’s work demands for Veloso increased over time, but her pay did not, the suit alleges.
“She often worked around the clock for many days straight,” the suit states.
David, obese at more than 200 pounds, also required Veloso to assist him using the restroom and tend to some of his hygiene needs, the suit states.
When Veloso complained about not being paid for overtime, David allegedly told the plaintiff, “You have to be thankful you have this job, you’re a poor girl from the jungle.”
While in the presence of his guests, David often made “offensive and disgusting comments” about Veloso “for his sick pleasure to feel more powerful,” according to the suit, which further alleges that David falsely accused the plaintiff of having sex with one of his business associates.
David frequently propositioned Veloso and demanded that she sleep in his bed after they watched the late night news, the suit states, telling her that, “All my employees sleep with me,” the suit states.
David also assured Veloso that she could keep her job if the plaintiff brought him “some young girls,” the suit states. When Veloso’s two nieces visited from Brazil, David “wined and dine” the two young women, who were both 23 years old, the suit states. He also offered the nieces thousands of dollars to sleep with him, leaving both “appalled and disgusted,” according to the suit.
David promised Veloso that if she continued working for him, he would help her buy a home and pay for her education costs to become a registered nurse and later a doctor, the suit states. He also allegedly offered her a 2019 Lincoln Nautilus.
“(Veloso) remained in David’s employ in reliance of all his promises,” the suit states.
However, David fired Veloso on Sept. 14 and the XCVI CEO pressured her to sign a termination agreement and agree not to pursue any claims against him in exchange for title to the Lincoln SUV, which David had earlier told her was her birthday present, the suit states.
Veloso has experienced emotional distress and suffered a substantial loss in income since being fired, according to the suit.