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Banker claims wrongful termination for Ponzi revelations

A Miami whistleblower said he was fired from his prestigious banking position after reporting suspicious activity related to a Ponzi scheme. The man has filed a wrongful termination case against the financier in connection with the allegations, which revolve around money scams initiated by now-famous Scott Rothstein.

The employee, a high-level regulations expert, claims that he was fired after reporting the investor’s misdeeds. His employer, Gibraltar Private Bank, reportedly told him that their workers did not have to abide by federal banking regulations because of their high-level clients. He had reported suspicions related to Rothstein’s accounts as early as 2008, according to the suit, but bank leaders told him to relax regulatory requirements for the investor, saying he was one of the business’s best clients.

When the man refused to ignore the problems and insisted that Rothstein’s accounts be closed, bank managers fired him.

Approximately one year after the man lost his job, Rothstein was apprehended after fleeing to Morocco. Authorities said he had masterminded a giant fraud scheme that ultimately fleeced investors of more than $1 billion. He has since been sentenced to 50 years’ time in a federal prison, according to reports.

Not only did the bank leaders fire the man bringing the suit, but he alleged that they also prevented him from getting other work because they defamed his character. The man’s former supervisors claimed that he was physically violent to other employees, saying that other workers refused to stay alone with the man after hours. The bank also falsely alleged that they were required to hire armed guards after the man was fired because they were afraid he would return with a gun.

The man is seeking compensation for a variety of wrongs, including retaliation, defamation, whistleblower violations and breach of employment agreements. It is not clear how much money the man is seeking in connection with the suit. He is not looking to be reinstated to his former position because the bank has since become defunct.

Source: Courthouse News Service, “Exec claims bank fired him for reporting Rothstein’s Ponzi scam,” Iulia Filip, Nov. 8, 2012