SEC Accused of Mishandling Whistleblower Claim Regarding Financial Misconduct at Deutsche Bank
The economy has come a long way since the financial crisis of the late 2000s. However, the fallout for the big banks and discussions of how the federal government should regulate them continues.
One whistleblower accused a senior Securities and Exchange Commission (SEC) official during the financial crisis of mishandling a tip he sent in alleging financial misconduct on the part of Deutsche Bank. The case is making its way through the U.S. Court of Appeals for the Second Circuit. The unnamed plaintiff claims that official, Reid Muoio, of failing to pass along information about how the bank was routinely mis-valuing the various types of subprime mortgage packages that played a major role in causing the global recession. As such, the whistleblower says he was unable to collect what would have been a large whistleblower award.
Deutsche Bank later paid $55 million in civil fines to settle claims it misled investors with regard to its subprime mortgages, with two former employers each getting compensated for assisting the SEC. The claimant in this case says he was unaware of how his tip was handled until after he was denied an award and launched an appeal into the SEC’s decision.
The SEC claims Muoio did not find the whistleblower credible.
Whistleblowers must be assertive
While the country has come a long way over the past decade with regard to how it protects and rewards whistleblowers, there is still work to be done in terms of believing whistleblowers and putting them into positions where they do not have to be fearful of their jobs and livelihood.
Therefore, it is critical for whistleblowers to secure legal guidance from skilled attorneys who can help them be assertive and ensure wrongdoing gets met with justice. To learn more, speak with an experienced attorney at Kardell Law Group.