30,000 Employees of Bank of America Expected to Leave, One Whistleblower Returning
While Bank of America announced a downsizing earlier this week with an anticipated 30,000 employees being given pink slips during the coming years.
Agustino Fontevecchia reporting in Forbes wrote, “…the company’s shares have been trading at multi-year lows while litigation has shattered confidence in the Bank’s ability to manage its massive portfolio of toxic loans.” Bank of America recently received an infusion of $5 billion dollars from Warren Buffet who heads Berkshire Hathaway .
While many at Bank of America are now contemplating their fate, word comes that at least one employee is being reinstated. The United States Department of Labor finds Bank of America in violation of the Sarbanes-Oxley Act whistle blower protection provisions. It has ordered the bank to reinstate a fired employee and pay approximately $930,000 which includes back wages, interest compensatory damages and attorney fees.
The findings follow an investigation by the Occupational Health and Safety Administration San Francisco Regional Office, which was initiated after receiving a complaint from the Los Angeles-area employee.
“It’s clear from our investigation that Bank of America used illegal retaliatory tactics against this employee,” said OSHA Assistant Secretary Dr. David Michaels. “This employee showed great courage reporting potential fraud and standing up for the rights of other employees to do the same.”
The employee worked for Countrywide Financial Corporation which merged with Bank of America in July 2008. The employee led internal investigations that revealed widespread and pervasive wire, mail and bank fraud involving Countrywide employees. The employee alleged that those who attempted to report fraud to Countrywide’s Employee Relations Department suffered persistent retaliation. The employee was fired shortly after the merger.
“Whistleblowers play a vital role in ensuring the integrity of our financial system, as well as the safety of our food, air, water, workplaces and transportation systems,” added Michaels. “This case highlights the importance of defending employees against retaliation when they try to protect the public from the consequences of an employer’s illegal activities.”
Both the complainant and Bank of America can appeal the monetary damages to the Labor Department’s Office of Administrative Law Judges within 30 days of receiving the findings.
Tags: Bank of America, layoffs, Pink Slips, Sarbanes-Oxley, Warren Buffett, Whistleblower
