Demos outed as a 'rat'

Monday, March 24, 2014

Demos outed as a 'rat'

Updated 03/25/2014 – 01:51 pm

Part of Conservative-Republican George Demos' curriculum vitae which hasn't gotten enough scrutiny was his career as a United States Securities and Exchange Commission En­forcement Attorney from 2002 through 2009, focusing on pros­ecuting corporate fraudsters.

Demos the rat

As with any enforcement agent's investigation efforts, a major aid in tracking wrong-doing in the form of misconduct or illegal ac­tivity occurring in an organiza­tion, is the whistle-blower, an insider more intimately involved with the workings and personnel than any outsider... no matter how good a detective he or she maybe, without the help of a whistle-blower, the investigation is often stillborn.

Whistle-blowers invariably operate at personal risk, and while the stakes are not always as high as they are in films such as "All the President's Men" (the fate of the nation), "Silkwood" and "The China Syndrome" (the fate of a populace), "The Insider" (corporate profits) or any of the John Gresham-type thrillers, i.e. "The Firm" (suspicious deaths), people lose jobs and their future employment options are severely limited.

Meet Peter Sivere, a JPMorgan Chase compliance officer until he put his trust in SEC attorney George Demos:

When Wall Street Watchdogs Hunt whistle-blowers

Sivere contacted Demos and laid out his findings that his employer JPMorgan had violated securities laws.

Altruism? Hardly, since the first thing Sivere wanted to know was what sort of "bounty" might be involved.

(There wasn't one.)

Still, Sivere stayed with it and provided the SEC with numer­ous E-mails supporting his belief there were irregularities at JPMorgan, and that the firm was not cooperating with the SEC investigation.

Shortly thereafter Sivere was first demoted, then fired from JPMorgan Chase when they learned what their compliance officer had done.

This was followed by a grievance, a lawsuit and a $350,000 settlement on Sivere's behalf.

Then Sivere discovered, during an OSHA investigation into his firing, that in May 2005 SEC lawyer Demos, in a move intended to aid JPMorgan's lawyers in their civil litigation with Sivere, had informed JPMorgan's lawyers of Sivere's ap­proach to the SEC seeking a bounty as a whistle-blower.

Why?

Who knows? Perhaps Sivere's approach and motivation of­fended Demos's personal sense of propriety.

(There's a sleaze factor on both sides1 here.)

But it's clear that Sivere went to Demos and Demos ratted him out to the people on whom he was informing.

Demos has consistantly denied he did anything improper.

However, documents obtained by the non-partisan non-profit Project On Government Oversight confirm that Demos was the staff attorney was cited in the Inspector General's report for violating SEC rules by improperly dis­closing protected, nonpublic information about a whistle­blower from JPMorgan.

Soon afterward, Demos quietly resigned from his position at the SEC and began his current endeavor, a biannual run for the Republican nomination for the 1st CD in the House of Representatives.

In 2011 the Third Judicial Department, following a review, concluded "that there is an insufficient basis for a finding of professional misconduct."

But so much for Demos' integrity, an element already sus­pect given his current association with Rudy Giuliani.

Note
  1. In his own defense, in an E-mail to OtBB Sivere acknowledges that his initial action "may sound sleazy but well within the rules of the game." He cites "SEC Awards More Than $14 Million to Whistleblower" as a recent example.

Comments

1. Hampton West said...

What's he doing with Giuliani?

Follow the provided link.

My dear ol' Mom used to say, "You lie down with dogs, you get up with fleas." Both these mutts are so infested already that it won't matter.
– Dean

2. Hunt Marckwald said...

Financial Regulators are supposed to adhere to "Safe Harbor" rules. As defined, the rule calls for the absolute protection of the identity of whistle-blowers -- so much for "Safe Harbor!"

Indeed!
Dean

3. TruthonZeldin said...

[See Now it can be told....]

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