A former Morgan Stanley broker has filed a suit accusing the firm of firing him for being a whistleblower who had raised allegations of insider trading involving its Knoxville, Tenn., branch and had helped federal authorities uncover fraud at a truck-stop chain.
The broker, John Verble, says in his filing that he wore a wire to help the Federal Bureau of Investigation investigate the fraud case, and that a superior at the Morgan Stanley office physically threatened him when his efforts became known.
“As a direct result of plaintiff’s involvement in assisting the FBI to investigate violations…plaintiff was retaliated against, discriminated against and illegally discharged from his position in violation of numerous federal statutes,” the complaint said.
Mr. Verble, now a financial adviser at Raymond James Financial Inc., wants either to return to his old job or damages equal to double his roughly $360,000 salary until he reaches 68 years of age, according to the complaint. He is now in his mid-50s, his lawyer’s office says.
Law360, New York (February 20, 2015, 2:16 PM ET) — Slightly more than a month after the U.S. Supreme Court found that borrowers need only to notify their creditors of their intention to rescind a mortgage within three years, lenders are still trying to figure out just how to respond to a potential flood of rescission requests, attorneys say.
The Supreme Court’s January decision in Jesinoski et al. v. Countrywide Home Loans Inc. et al. said that the Truth In Lending Act gave borrowers the power to rescind their mortgages simply by notifying lenders of their…
A hedge fund that recently claimed that Ocwen Financial (OCN) and its affiliated company, Home Loan Servicing Solutions (HLSS), breached their mortgage bond covenants is now saying that recent events have done nothing but reinforce their initial claims of default.
BlueMountain Capital Management recently sent notices of default to Ocwen and HLSS, saying that Ocwen’s regulatory troubles have caused an “irrefutable” default on notes the hedge fund holds in connection with the HLSS Servicer Advance Receivables Trust.
And now the hedge fund is claiming that recent downgrades to Ocwen’s servicer ratings are more evidence that Ocwen and HLSS is in default.
BlueMountain Capital specifically mentions Fitch Ratings’ recent downgrade of Ocwen’s mortgage servicer ratings as further evidence of default.
Less than a month ago, Fitch Ratings sounded the alarmon residential mortgage-backed securities that contain loans serviced by Ocwen Loan Servicing, an affiliate of Ocwen Financial (OCN), telling investors to expect a downgrade on the ratings of Ocwen-related RMBS transactions soon.
And Friday, Fitch followed through on its threat and downgraded hundreds of RMBS classes because they contained Ocwen-serviced loans.
Fitch previously placed 297 RMBS classes from 135 separate transactions on “negative rating watch,” due to the presence of Ocwen-serviced loans in the transactions.
Fitch announced Friday that it resolved the rating watch on 280 of the 297 RMBS classes from 127 of the original 135 transactions, and the results aren’t good for investors.
According to Fitch, it downgraded 273 of the 280 classes to a rating level of “Asf.” Previously, all of the classes were rated above “Asf.”