Feds Fine Bank of America $930,000 For Firing Whistleblower

For Bank of America, trouble seems to grow on trees these days. In the latest setback, the Occupational Safety and Health Administration (OSHA) has found the bank illegally fired a Countrywide Financial Corp. employee who had identified and reported widespread fraud.

"It's clear from our investigation that Bank of America used illegal retaliatory tactics against this employee," said OSHA Assistant Secretary Dr. David Michaels. "This employee showed great courage reporting potential fraud and standing up for the rights of other employees to do the same."

The employee originally worked for Countrywide, which merged with Bank of America in July 2008. The employee led internal investigations that revealed widespread and pervasive wire, mail and bank fraud involving Countrywide employees.

The employee alleged that those who attempted to report fraud to Countrywide's Employee Relations Department suffered persistent retaliation. The employee was fired shortly after the merger.

"Whistleblowers play a vital role in ensuring the integrity of our financial system, as well as the safety of our food, air, water, workplaces and transportation systems," added Michaels. "This case highlights the importance of defending employees against retaliation when they try to protect the public from the consequences of an employer's illegal activities."

OSHA found Bank of America had violated the whistleblower protection provisions of the Sarbanes-Oxley Act and ordered it to reinstate and pay the employee approximately $930,000, which includes back wages, interest, compensatory damages and attorney fees. The findings follow an investigation by OSHA's San Francisco Regional Office, which was initiated after receiving a complaint from the Los Angeles-area employee, whose identity was not revealed.