Friday, June 1, 2012

Whistleblowing 101






According to  Stephen Bornstein  in 2009, Linda Almonte, a division vice president at JPMorgan in San Antonio, TX, discovered substantial errors and omissions in the paperwork supporting almost $200 million worth of credit card judgments the bank was selling to a debt collection agency. Nearly half the files were missing proofs of judgment and almost a quarter of the debts were overstated.
When she told her boss of her discovery, Almonte got no kudos for spotting the problems and was told instead to keep the file defects to herself. On principle, she refused to go along with the sale and was subsequently fired.

Standing up to JPM cost Linda Almonte more than her job. She spent the next two years trying unsuccessfully to interest any bank regulator in her case against JPM and to find work at other banks in the San Antonio area. She eventually lost her house and had to move her family to another town. To this day, Almonte has not come close to matching her salary at JPM.

What she has done, however, is file a claim with the SEC under its new whistleblower program, which offers bounties to employees who expose suspected violations of federal law by their employers that eventually lead to settlements of $1 million or more…..

Read all about it  at http://www.newyorkcityassetmanagementlawblog.com/2012/05/whistleblowing-101.shtml

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