Bank of America Ordered to Pay $930,000 to Whistleblower for Violating SOX

The U.S. Department of Labor ordered Bank of America (BoA)  to reinstate and pay $930,000 to a former employee who BoA is accused of unlawfully retaliating against. The unidentified employee worked for Countrywide Financial Corp. before it merged with Bank of America in 2008.

After conducting an internal investigation, the former employee found “widespread and pervasive wire, mail and bank fraud involving Countrywide employees.” She reported her findings to Countrywide’s Employee Relations Department but shortly after Bank of America acquired Countrywide she was fired purportedly due to her “management style.”

The Department of Labor’s Occupational Safety and Health Administration and the former employee  maintain that “Bank of America used illegal retaliatory tactics against this employee” because she had the integrity to report potential fraud.  Reporting corporate wrongdoing involving wire, mail, and bank fraud are protected activy under the whistleblower protection provision of the Sarbanes-Oxley Act.

Tagged: Sarbanes-Oxley Act (SOX), Whistleblower Laws (Federal)