Whistleblower Alleges Securities and Exchange Commission (SEC) Retaliation in Sex Fiasco
Cleveland, OH (Law Firm Newswire) January 16, 2013 - This case could not get any stranger. The former chief investigator for the SEC says they retaliated against him for being a whistleblower.
“The complaint in this case has to be read to be believed,” said Tom Robenalt, a Cleveland whistleblower lawyer. “It alleges that the SEC is running amok and participating in questionable sexual activity with employees, rather than doing its job. When the relator, David Weber, brought his concerns into the open, he alleges that the SEC made him the target of various intrigues to attempt to discredit him.”
The basis of the story is that while the SEC Inspector General’s office has been trying to investigate alleged negligence in responding to matters such as the Bernie Madoff and Stanford Financial Ponzi cases, that two senior officials were sleeping together – the former Inspector General and Weber’s successor. The accusations do not stop there, as Weber’s complaint also suggests that the former Inspector General was conducting an affair with an attorney representing Stanford Ponzi victims.
Things apparently went from bad to worse when female rivalries were also blended into the unbelievable mess that was developing at the SEC. The rivalry was between the new head of the SEC and the attorney for the Stanford Ponzi victims. That however, was the tip of the iceberg, as the former Inspector General stepped down due to questions about his ethics. That development was followed closely by an investigation by the U.S. Postal Service Inspector General, who determined that the former SEC Inspector General violated rules by supervising investigations involving people he was having personal relationships with.
Once Weber made his concerns known, he was quickly placed on leave, in May. The reason for the leave was that he was a personal threat, as he had stated that he wanted to bring a gun to work. He was subsequently fired in October. The allegations do not stop at his superiors having affairs with co-workers. He further alleges the SEC handed out contracts to their best friends, covered up sexual harassment cases, failed to fully screen contractors that accessed their databases and engaged in significant security violations. “It gets even stranger yet, but suffice it to say, this case will be a media circus,” stated Robenalt.
The possible outcome of this whistleblower case? “Really, it is difficult to tell,” suggested Robenalt, “as there are far too many unusual events and variables involved. However, one thing is clear, and that is if these claims are substantiated, the most disturbing aspect is that federal whistleblowers are moving targets that have been the butt of reprisals, rather than having their claims checked into.”
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