Worker alleged that management regularly yelled at them when rates were reset too low

In a case before the California Court of Appeal, seven former employees of certain financial institutions allegedly corroborated a complaint that their ex-employers shirked their contractual and regulatory obligations and engaged in rate-setting misconduct.

In the case of State of California ex rel. Edelweiss Fund LLC et al. v. JPMorgan Chase & Company et al., Edelweiss Fund, LLC sued JPMorgan, Citigroup, Wells Fargo, Bank of America, Merrill Lynch, Morgan Stanley, Barclays, Royal Bank of Canada, and Piper Jaffray.

Read more: Wells Fargo employee accused of being racist cyberbully

The complaint alleged that the defendants:

• conspired to violate the California False Claims Act by colluding to inflate interest rates on California variable rate demand obligations (VRDOs)
• engaged in a coordinated “robo-resetting” scheme where they would mechanically set the rates as a whole without considering the bonds’ individual characteristics, the associated market conditions, or investor demand and would impose artificially high rates
• failed to fulfill their obligations as remarketing agents to reset the interest rates at the lowest possible rates that would enable them to sell the series at face value
• submitted false claims for payment for remarketing services between 2009 and 2013.

Certain past employees of the defendants provided statements supporting the claim of a robo-resetting scheme,...

Read Full Story: https://news.google.com/rss/articles/CBMihgFodHRwczovL3d3dy5oY2FtYWcuY29tL3Vz...