1 DECLARATIOI'$ QLLAURA ONJJFROCK

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t~ LAURA ONUFROCK. declare as follows:
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L I am a competent adult. The facts set forth herein are of my own personal
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knowledge, and if called upon to do so, I could so competently testify to the facts contained
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herein..
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10 2. I submit this declaration in support of the Cross-Defendants Motion. To Strike

11 Strategic Lawsuit Against Public Participation. This declaration is to establish my personal

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knowledge that MOLINA HEALTHCARE, INC. (hereafter "MOLINA''.) intended to and did
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defraud certain persons into signing a severance agreement.
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3. In September 2005, I began working for MOLINA as a consultant in .regulatory
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16 filing, specifically the Sobranes-Oxley Act. In February 2006. I was ''promoted'' to a full time
17 employee for MOLINA as the Manager of Security and Exchange (hereafter ''SEC") reporting
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. and Audits and assumed the duties as the Manger of Budgets for various departments, including
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the Infonnati.on Technology (hereafter •1T") Department.
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21 4. During my employment with MOLINA, I interacted daily wi.tb. various mangers,

22 Directors~ Vice Presidents and Upper Management in.cluding John Molina, Chief Finance
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Officer, on various issues, some of which I will detail in this statement. Initially, I reported
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directly to Joseph White, Executive Vice-President of Finance, but subsequently I reported to

the corporate controller, Helga Gergen. However~ at all times, I communicated with Joseph

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Z7 White on the financial status of each departm.ent
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DECLAR.I\TION OF LAURA ONUFROCK

 5. My job duties required me to communicate with 13-15 Directors monthly to obtain
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2 their department's expenses. Between 2006 to February 2010, I spoke extensively with Amir

3 Desai; Chiefinformati.on Officer~ who oversaw the IT Department,. about the budget regarding
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the IT Department. Part of my job duties required me to review all incoming IT Department
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invoices and also to determine and balance IT labor hours and costs. I created, m.anaged and
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reported the lT Department budget based on the actual invoices and pr~jects, both current and

e future. I track the internal and external labor costs for the IT department.

9 6. Another part of my job duties between 2006 and February 2010, was to track labor
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needs by individual project. Because I knew how many IT personnel, both internal (U.S.
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workers) and external (Cognizant Indian Contractors); I could brief Amir Desai (lwreafter
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13 "DESAI'') and Joseph White, MOLINA'S Chief Financial Officer, on the need to capitali7...e a

14 project and I did forecasts on future needs for labor based on. projected projects.
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7. Thus~ in July 2009, I met w:i.th DESAI and Joseph White t-o discuss the future labor
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needs of the IT Department. There were lots of current projects that required every individual
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c11ttently employed (l.e. no waste of excess personnel) and the future (2010) PROJECTED

19 PROJECTS REQUR.IED THE IDRING OF more IT personnel.

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8. In October 2009, I met with DESAI and Joseph White to discuss the future labor
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needs of the IT Deparllnent. There were lots of current projects that required every indiVidual
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cutrently employed (i.e. no waste of excess personnel) and the future (201 0) PROJECTED
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24 PROJECTS REQURIED THE lURING OF more IT personneL

25 9. In October 2009, MOLlNA knew that it was completing the purchase ofUni.sys
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Corporation in early 2010. DEASI stated to me that this action would require an increase in IT
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personnel by at least a couple of hundred.
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DECLARATION OF LAURA ONUFROCK

 10. In 2006, DESAI informed MOLINA's Upper Management, including me, that b
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2 preferred to only hire Indians from India. I watched and observed how the national origin make

3 up of the IT Departroent changed from evenly mixed in 2006 to over 95% Indian in 2010.
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11. DESAl would always bring in a Indian HlB contractor supplied by Cognizant
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before he would look for ,ru.s. wo:rker. I closely followed this practice (actually an obsession
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with DESAI) because it actually increased MOL1NA.'s cost oflabor and inflated the IT

8 Department's budget and the capital budget, both actual and projected.
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12. I told DESAI and MOLINA's upper management in 2007, 2008, 2009 and 2010
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that the cost ofHlB contractors, at least from Cognizant, was 144% higher than the present U.S.
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workers, including managers and benefits. The actual numbers s.howed that on average
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13 MOLINA paid $50 per hour to U.S workers, salary and benefits figured in, versus the cost of

labo:t of the H1B conttactors was $72 per hour.

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13. At MOLINA, the job ben.efi.ts costs approximately $10 pe.r hour per employee.
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Thus, the labor cost of U.S. workers without benefits was $40 per hour versus $72 per hour of
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the Cognizant HlB contractors. Thus, Cognizant costs were 180 % higher tb.an. the U.S.

19 workers~ including managers.

20 14. MOLINA's upper management insisted on hiring Indians at any cost or expense
21 ·tegdess of the fact that the U.S. "·urkers were less expensive~ more experienced and knew the
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.. business systems. This practice was seen in many departments includi11g accounting, claims an
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24 the help desk.

25 15. In the 4th quarter of 2009 the IT Department was over budget due ta

26 extraordinary costs imposed by upper management by using more expensive e:x:terna1

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labor to complete projects.

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DECLARATION OF LAURA ONUFROC~---··-· -·-~··--· ·---
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 16. In 2010J after the mass lay off of U.S. workerst the IT Department labor
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2 costs skyt'ocketed out of control. It exeeeded the Jabot budget by oYer $5.5 million dollars

3 in the first quarter due to the hiring. of so many full time employees to replace the fired
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U.S. workers.
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17. fu December 2010~ DESAI stated to me that he and MOLINA had already
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negotiated and agreed with Cognizant for them to supply 40 Jndians employees once MOLINA

8 fired the 40 impacted U.S. employees. The final solution was that Cognizant's Indian.
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replacement-; worked in Long Beach, California at th.e MOLINA office and were to and di.d do
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the same jobs under the same supervisors as the 40 fired American. & Green. card holders. The
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reason told to me by DESAI for the layoff on January 14, 201 0, was that due to ~'financial
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13 losses'' MOLINA "'NEEDED TO cut costs across the board." (Emphasis added.) I believed him

14 at the tim.e since I had no other infoxmati.on to contradict him.

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18. I was not present .at the January 14~ 2010, mass layoff of the 40 U.S. workers.
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helped by the mass layoff oftbe40 U.S. wotkem. The

I can say from my personal knowledge that the IT Department Budget was NOT

that 11le IT Departmem budget wru

hurt by the over hiring of Indian HlB contractor to try and do the same job done by the U.S.
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20. Access to the financial informatio.u. that I testifY to j:a this declaration was
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closely held within MOLINA. Knowledge of the forgoing facts was liinited to myselt Joseph
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White and DEASI. Even my immediate Supervisor, Helga Gergen was not briefed on the IT

Department Budget.
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DECLARATION OF LAURA ONUFROCK

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I declare under penalty of perjury under the laws of the State of California that the
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3 foregoing is true and correct.

4 Executed this !..::1_ day of August 2011, in Los Angeles, California

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8 .<a.ulf"i ..<. CJnoffac..i:

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DECLARATION OF LAURA ONUFR.OCK