Harbor Hall Lawsuit: Harassment Claims, Board Response, Outcome

The Harbor Hall lawsuit was a federal whistleblower and employment case filed in April 2025 by former Chief Financial Officer Holly Peterson-Wood against the Petoskey, Michigan addiction treatment nonprofit, its former CEO Peter Bucci, and board president Lawrence Rochon. The complaint alleged sexual harassment by Bucci, a concealed Medicare and Medicaid billing fraud scheme, and retaliation against Peterson-Wood after she raised concerns internally. The case was dismissed by stipulation on March 6, 2026, with no public disclosure of terms.¹

What the Complaint Alleged

Peterson-Wood filed suit on April 18, 2025, in the U.S. District Court for the Western District of Michigan, case number 1:25-cv-00436, assigned to Judge Robert J. Jonker and classified as a civil rights employment action.¹

The complaint made three sets of claims. Bucci was accused of sexually harassing Harbor Hall staff, with the board allegedly aware of the accusations before promoting him. Peterson-Wood said she had also uncovered a fraudulent billing scheme involving third-party laboratories that misused Medicare and Medicaid funds. And she alleged that after she reported both issues internally, she was subjected to retaliation and a hostile work environment.²

How the Board Allegedly Responded

According to the complaint, Peterson-Wood brought her evidence of billing fraud to the board of directors. Bucci dismissed her findings in a single sentence, and board members responded by telling him, “We trust you, Peter.” The board then promoted Bucci to CEO and gave him oversight of human resources, despite already knowing of the harassment complaints against him.²

Former billing and credentialing specialist Jerika Kiley, who was not a plaintiff, spoke publicly after the filing. She said the workplace under Bucci was one where “the environment made you question your own reality and your own evidence at times,” and that staff were told to follow “Peter’s rules” even when those directives contradicted the organization’s written policies. Reporting at the time noted that additional witnesses had come forward after the suit was filed.²

What Harbor Hall Said

Harbor Hall, Rochon, and Bucci did not respond to media requests for comment. Attorneys for Harbor Hall and Rochon filed a legal response denying all of the allegations.²

How the Case Ended

On July 29, 2025, Bucci and Rochon were terminated as individual defendants, leaving Harbor Hall Inc. as the sole remaining defendant. Peterson-Wood filed a stipulation of dismissal on March 4, 2026, and Judge Jonker signed the order granting it two days later, closing the case.¹

The docket does not indicate whether the dismissal followed a settlement, and no public reporting has detailed the terms. A stipulated dismissal in federal court typically reflects an agreement between the parties to end the litigation, often after a settlement, but neither side is required to disclose terms.

About Harbor Hall

Harbor Hall is a 501(c)(3) nonprofit founded in 1973 that provides substance abuse treatment and prevention in northern Michigan, with its main campus on Emmet Street in Petoskey and outpatient offices in Petoskey and Cheboygan.³ Recent filings report roughly $7.9 million in annual revenue, about 99 employees, and 54 residential beds split between men’s and women’s programs.⁴

Barbara Weston is listed as the current CEO in Harbor Hall’s recent filings, replacing Bucci, though the exact timing of that transition has not been detailed publicly.⁴ Rochon served as unpaid board president from at least 2013 through the 2025 fiscal year, according to the organization’s IRS Form 990 filings.⁵

1
PACER Monitor. Peterson-Wood v. Harbor Hall, Inc. et al
2
UpNorthLive. Lawsuit Targets Harbor Hall in Petoskey for Sexual Harassment, Healthcare Fraud Claims
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Harbor Hall. About Us
4
CauseIQ. Harbor Hall
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ProPublica. Harbor Hall Inc.