Bank of America Ordered to Reinstate and Pay $930,000 to Whistleblower

Strategic Insights -

The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has found Bank of America Corp. in violation of the whistleblower protection provisions of the Sarbanes-Oxley Act for improperly firing an employee. The bank has been ordered to reinstate the employee and pay approximately $930,000, which includes back wages, interest, compensatory damages, and attorney fees. The employee, who previously worked for Countrywide Financial Corp., led internal investigations that revealed widespread and pervasive wire, mail, and bank fraud involving Countrywide employees.

Key Takeaways:

  • Bank of America was found in violation of the whistleblower protection provisions of the Sarbanes-Oxley Act for firing an employee who reported potential fraud.
  • The employee was ordered to be reinstated and paid approximately $930,000, which includes back wages, interest, compensatory damages, and attorney fees.
  • The employee led internal investigations that revealed widespread and pervasive wire, mail, and bank fraud involving Countrywide employees.
  • OSHA's San Francisco Regional Office conducted the investigation, which was initiated after receiving a complaint from the employee.
  • The whistleblower provisions of the Sarbanes-Oxley Act and 20 other statutes protect 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.
  • Employers are prohibited from retaliating against employees who raise various protected concerns or provide protected information to the employer or to the government.
  • Employees who believe they have been retaliated against for engaging in protected conduct may file a complaint with the secretary of labor to request an investigation by OSHA's Whistleblower Protection Program.

Statistics:

  • Approximately $930,000, including back wages, interest, compensatory damages, and attorney fees, has been ordered for the whistleblower.
  • The employee was fired shortly after the merger between Countrywide Financial Corp. and Bank of America in July 2008.
  • OSHA has jurisdiction over 20 statutes protecting employees who report violations, in addition to the Sarbanes-Oxley Act.

Sources:

  • U.S. Department of Labor news release (no date given)