Banc of California has been facing a number of different accusations recently. It started with alleged ties between the company’s leadership and a financier who had been put in jail in New York. Then in August a former vice president alleged it was whistle blower retaliation that led to his firing after he voiced concerns about self-dealing and other conduct of the directors and officers at the company.
Now there are more accusations after another fired employee alleges that it was again whistle blower retaliation. The former employee specifically stated that she was fired after complaining about how the company was illegally shifting pool of bonuses from 2016 to 2017 to try and boost the company’s profits in 2017 on paper. The former employer also complained that the company’s former CEO also used company funds to pay for strippers and had sex with employees in his office.
It is important that companies are following the law and regulations. However, in many cases it is hard to police and companies can carry on illegal activity for years before getting caught. The various law enforcement and regulatory agencies often times need the assistance of employees inside the company to expose the illegal activity. That is why the law also prohibits employers from retaliating against employees who complain about or expose illegal activity.
While Banc of California has been in the news recently for their potentially illegal activity, there are many other companies doing similar things. Also, many employees have made complaints regarding the illegal activity. These employees are protected from retaliation and may be entitled to compensation and even job reinstatement if the employer does retaliate. Employees have more rights than they may realize and experienced attorneys may be a useful resource.
Source: www.bloomberg.com, “Banc of California whistle-blower alleges fraud, strippers” Jennifer Surane, Dec. 8, 2017