A principal architect at one of the top firms in Minnesota alleges in a lawsuit that he discovered the company was diverting millions of dollars to a secret bank account and was fired after he repeatedly brought his discovery to senior leadership.
The lawsuit, filed by Todd Novak, lays out the quickly deteriorating relationship of what was a promising career with Minneapolis-based RSP Architects.
RSP hired Novak in 2019 to be a senior associate to help lead the company on multifamily architectural projects.
Novak had earned his master’s degree in architecture from the University of Minnesota and quickly established himself in the field. He was the lead on major projects while working for Ryan Companies and Mohagen Hansen Architecture, including the redevelopment of the Pillsbury A Mill — a National Historic Landmark on the banks of the Mississippi in Minneapolis — and the Nolan Mains Development at 50th and France in Edina.
RSP has a lengthy history of award-winning architectural work, especially in Minnesota and Arizona. Its list of projects include turning Block E into Mayo Clinic Square in Minneapolis, designing the Target Wing of the Minneapolis Institute of Arts and working on numerous projects with Target, Mayo Clinic and Mortenson. The lawsuit states that the company’s budgeted revenue for 2024 was $88.5 million.
Once Novak got started, he secured contracts for RSP to design mixed-use/multifamily projects like the Northstar Center redevelopment in downtown Minneapolis and multifamily buildings at Viking Lakes in Eagan. In 2021, he was promoted to principal architect and given national oversight of RSP’s work in retail, hospitality and mixed-used properties.
David Norback, RSP’s chief executive, said in a statement announcing the promotion that Novak represented the company’s “next generation of leadership” and his role was a confirmation of the national growth of the company.
The lawsuit filed in Hennepin County District Court this month alleges that as Novak climbed the corporate ladder he uncovered millions of dollars in missing funds in RSP’s finances and began continuously raising questions about it.