Whistleblower Archives - The Frankowski Firm

Former Brokers Bring $20M Whistleblower Suit Against Morgan Stanley

Jaime Feldman and her husband, James Boland, a couple of ex-Morgan Stanley brokers in the firm's midtown Manhattan branch, have sued Morgan Stanley and the branch manager for $20 million in damages, claiming that they were retaliated against and wrongfully terminated after they blew the whistle on alleged fraudulent activity and securities law violations at the branch. Feldman and Boland were fired in 2011 with Morgan Stanley claiming they did not meet performance requirements. The couple, however, argue that any performances issues were pretext for terminating them after they made a series of allegations against the firm. They allege that the branch had unlicensed trainees making cold calls to prospects with misleading scripts, brokers were changing client risk profiles, and advisers were working from home without proper supervision. According to the complaint, interns and trainees at the Morgan Stanley branch were calling people at large corporations, including Pfizer and Verizon, who were close to retiring and had 401(k) plans with [...]

SEC Gives Award To Whistleblower

Whistleblower Gets Award In the SEC’s first retaliation case, a whistleblower will be awarded 30 percent of the amount collected by the SEC during the charge. The SEC recently established a whistleblower program that encourages whistleblowers to report key information to help the SEC enforce actions. Through the whistleblower program, the SEC awards whistleblowers between 10 percent and 30 percent of amounts collected in a successful case. Due to the efforts of a whistleblower, the SEC was able to successfully enforce actions with sanctions in In the Matter of Paradigm Capital Management, Inc. and Candace King Weir, File No. 3-15930 (June 16, 2014). However, the whistleblower in Paradigm suffered retaliation and other hardships as a result of reporting high-quality, original information to the SEC. Other hardships included a demotion to a position that included investigating the very conduct the whistleblower reported. Paradigm also changed the whistleblower’s job functions, specifically by removing supervisory responsibilities. The SEC awarded the whistleblower the maximum [...]

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