Bruno Fagali has recently posted an article on his blog regarding one of the largest rewards given by the SEC to whistleblowers. Two rewards were granted by the Securities and Exchange Commision to two people who reported and helped proves serious financial irregularities that were committed by Bank of America. Read more about Fagali on Crunchbase.
Three individual reports were made about Bank of America’s illegal financial activity. It turned out that only two of the reports made consisted of serious financial violations that were initiated by wealth management company Merril Lynch, and the activity continued after Merril Lynch purchased Bank of America.
Fagali reports that the first violation committed by Bank of America was using account holders money for secret and risky transactions. The SEC found that Bank of America used five million dollars of its account holders money from 2009-2012. The five million dollars generated fifty million dollars in profit for the bank. Bank of America consciously put account holders assets at risk for their own profit instead of protecting those assets.
Fagali reports that the second violation committed by Bank of America was to place account holders money in secret accounts that were placed in compensation burdens. For six years fifty-eight billion of account holders money was placed in reserve. This money could have been subject to claims of bank creditors, and at the time it was feasible to believe that the bank may have had to file for bankruptcy.
Fagali’s blogs clearly state that these actions violate Bank of America’s responsibility for consumer protection. Instead of complying with its legal duty to protect their account holders assets Bank of America put fifty-eight million dollars of their account holders assets at risk. Though the bank’s actions did not result in any losses to the account holder the bank is still liable for its actions.
Learn more: http://fagali.jusbrasil.com.br/