SEC Complaint Filed by Stockholder against Bank of America Corporation And Its President, Brian Moynihan
Los Angeles, Feb 1, 2010 Complaint was filed by Joseph Zernik, PhD, Stockholder, against Bank of America Corporation [NYSE:BAC] and its new President, Brian Moynihan. Mary Schapiro, Chair of SEC, confirmed receipt. Stockholder Zernik also requested that Ms Schapiro release public information that would allow better assessment of integrity of operations at BAC prior to the February 23, 2010 Special Stockholders’ Meeting. Integrity of operations at BAC has been a major subject of concern in the past two years, including ongoing investigation by NY State Attorney General Andrew Cuomo, and multiple litigations alleging securities fraud by BAC.
In the letter to Ms Schapiro Notice was requested regarding disposition of previous complaint, receipt of which was confirmed by Ms Schapiro on January 11, 2010. SEC failed to provide any indication of the disposition of the complaint.
Release was also requested of public records from ongoing litigation of SEC v BAC (1:09-cv-06829) at the United States District Court in NYC, which would allow to ascertain that such litigation, which was widely reported by media was conducted in valid and effectual manner. The District Court, NYC, and attorneys for SEC and BAC so far denied access to such public records with no explanation at all. Continued denial of access to public records in such landmark litigation casts a doubt regarding integrity of both the courts and banking regulation in the United States.
New complaint was filed with SEC alleging: (a) Fraud in certifications by BAC in periodic reports to SEC and to shareholders pursuant to Sarbanes Oxley Act (2002). Such certifications state that any fraud by management or by those directly involved in financial reporting was reported to the Audit Committee. It was alleged the correspondence with General Tommy Franks, former member of the Audit Committee would lead one to conclude that BAC management did not comply with such reporting duty. (b) On December 10, 2008 the former General Counsel of BAC, Timothy Mayopoulos was ousted under circumstances that led to hearings in the US Congress. He was escorted by security out of the building in the middle of negotiations with Merrill Lynch. Brian Moynihan, today BAC's President, was appointed as his replacement. It was alleged that the evidence demonstrated that the reason for the unusual events was at least in part correlated with refusal of General Counsel Mayopoulos to collude with fraud by the former Legal Department of Countrywide. Within days after appointment of Moynihan such fraud continued full speed ahead.
BAC is the largest consumer deposit bank in the United States today, following waiver of deposit limit in 2008. BAC is also the recipient of some $200 in United States bailout funds in the past two years alone, while multiple litigations alleging securities fraud are underway against BAC today, and concerns regarding fraud by former president Kenneth Lewis led to his stepping down December 31, 2009 and his replacement by Brian Moynihan. Separately, concerns were raised world-wide regarding dysfunctional state of United States banking regulation, and consequently - high risks of instability of United States financial markets and financial institutions. Special Stockholders Meeting of BAC was scheduled for February 23, 2010.
Los Angeles, California
Tags: Bank of America Corporation, BAC, SEC, Brian Moynihan, sub-prime crisis, banking regulation, US banking bailout
Location: Los Angeles, California, United States (load item map)
Marked as: approved
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