Latino business lawyer plagued by misconduct claims resurfaces with ‘no labels’

No Labels, the centrist organization fighting for access to ballots for the 2024 presidential election, has joined forces with Javier Palomarez, an advocate for Hispanic-owned companies with a history of allegations of workplace financial misconduct and sexual harassment.

In 2018, Mr. Palomarez resigned from his position as chief executive of the Hispanic Chamber of Commerce in the United States amid accusations of boosting his salary and unwittingly approaching his female chief of staff. He denied these allegations and later sued the chamber. He also sued one of the group’s former directors for sexually harassing him. Both cases were ultimately settled out of court in 2019.

In an interview on Tuesday evening, Mr. Palomarez said his departure from the Spanish Chamber was the result of a witch hunt against him because he chose to work with the Trump administration rather than against it. He said he had won “the cases” against his accusers, although he said the terms of the settlements remained confidential. He refused to make them public. “All I can do is tell you that I maintained my innocence then and I still do now,” he said.

Mr. Palomarez is one self-described Democrat who resigned from a diversity coalition convened by the Trump administration over its efforts to end the Deferred Action for Childhood Arrivals program. He occasionally appears on cable news criticize President Biden on issues like immigration and domestic energy production. He is also the founder and CEO of an advocacy organization with a mission similar to that of the U.S. Hispanic Chamber of Commerce, his former employer, and is now a volunteer leader at No Labels.

During a video meeting with No Labels followers on Tuesday evening, Mr. Palomarez spoke about the importance of involving Hispanic voters as part of any presidential ticket.

“Our nation is at a transit point. Never before have we been so disillusioned with our elected officials and our leaders,” he told the roughly 300 participants on the call. “One thing is clear: the Spanish electorate will play a decisive role in the 2024 elections.”

Mr. Palomarez, who voted for Mr. Biden in 2020, said his role at No Labels would be as a conduit for the Hispanic community, which he said has been harmed by the Biden administration’s energy policies.

Feedback from No Labels supporters, he said, is that it would be better to replace Mr. Biden with a Republican.

“There is a sense that this White House has lost touch,” he said. “From an economic perspective, a Republican would be better suited to run the country.”

But before the meeting with Mr. Palomarez, some guests were secretly outraged by his involvement.

“It was alarming to see his role in a large organization like No Labels, even though No Labels clearly lacks much credibility when it comes to national politics,” said Maria Cardona, a Democratic strategist who served on the board of the US Hispanic Chamber of Commerce when Mr. Palomarez came under fire. “I hope he has changed.”

Nancy Jacobson, the CEO of No Labels, said Tuesday that she was unaware of the 2018 allegations against Mr. Palomarez.

No Labels, which is exploring the possibility of organizing a so-called presidential unity ticket in which both a Republican and a Democrat could participate, has qualified for the presidential elections in twelve states. But in other states, its efforts have stalled — due to rules in some states that require new third-party organizations to have a candidate to secure access to ballots.

Mr. Biden’s allies view No Labels as an existential threat because of the competition it could create for both votes and dollars. As a result, Democrats have largely shunned No Labels, a result of a campaign by the group Third Way to dissuade top party members and donors from participating in the organization.

They may have reason to be concerned. On the call Tuesday, Neil Newhouse, a Republican pollster, said a survey he recently conducted for the Spanish-language news network Univision found that independent presidential candidates Robert F. Kennedy Jr. and Cornel West drew more support from Mr. Biden than they were from former President Donald J. Trump. Mr. Newhouse showed a slide showing Mr. Biden and Mr. Trump tied in a two-way race, but Mr. Trump ahead in a race with several other candidates on the ballot.

Ms. Jacobson has told potential donors in recent weeks that the group will name a Republican to lead the presidential election at a planned convention in April.

In 2021, three years after leaving the trade association, Mr. Palomarez founded the United States Hispanic Business Council, whose mission is to “strengthen Hispanic-owned businesses in the United States by advocating for people and policies that accelerate their progress supports.”

Ms. Jacobson said Mr. Palomarez came highly recommended to No Labels.

“Several people referred him to our organization as a highly competent leader who could add value and perspective as a volunteer,” she said. Ms. Jacobson said Mr. Palomarez would not be paid. She added that he would work with the No Labels co-chairs, but did not say what his responsibilities would be.