Bank of America Ordered to Reimburse Fired Employee $930,000

The U.S. Department of Labor's Occupational Safety and Health Administration has found Bank of America Corp. in violation of the whistleblower protection provisions of the Sarbanes-Oxley Act for improperly firing an employee. An investigation by OSHA's San Francisco Regional Office revealed that the employee was led internal investigations that revealed widespread and pervasive wire, mail, and bank fraud involving Countrywide employees. The employee alleged persistent retaliation after attempting to report fraud to Countrywide's Employee Relations Department, and was subsequently fired after the merger with Bank of America in July 2008. The bank has been ordered to reinstate the employee and pay approximately $930,000, including back wages, interest, compensatory damages, and attorney fees.

Key Takeaways:

• Bank of America Corp. has been found in violation of the whistleblower protection provisions of the Sarbanes-Oxley Act.
• The employee at the center of the case led internal investigations revealing widespread and pervasive wire, mail, and bank fraud involving Countrywide employees.
• The employee alleged persistent retaliation after attempting to report fraud to Countrywide's Employee Relations Department and was fired shortly after the merger with Bank of America in July 2008.
• The bank must reinstate the employee and pay approximately $930,000, including back wages, interest, compensatory damages, and attorney fees.
• The whistleblower protection provisions of the Sarbanes-Oxley Act and other laws enacted by Congress protect employees who raise various protected concerns or provide protected information to the employer or to the government.
• OSHA's role is to ensure safe and healthful workplaces for employees by setting and enforcing standards, and providing training, education, and assistance.

Statistics:

• The bank has been ordered to pay approximately $930,000, including back wages, interest, compensatory damages, and attorney fees.
• The investigation by OSHA's San Francisco Regional Office revealed widespread and pervasive wire, mail, and bank fraud involving Countrywide employees.
• The whistleblower protection provisions of the Sarbanes-Oxley Act and other laws enacted by Congress protect employees who raise various protected concerns or provide protected information to the employer or to the government.
• OSHA enforces the whistleblower provisions of the Sarbanes-Oxley Act and 20 other statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, public transportation agency, railroad, and maritime laws.

Sources:

• U.S. Department of Labor's Occupational Safety and Health Administration
• The U.S. Department of Labor's website
• The Occupational Safety and Health Act of 1970
• The Sarbanes-Oxley Act
• The whistleblower protection provisions of the Sarbanes-Oxley Act and other laws enacted by Congress