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Whistleblower in Bank of New York Mellon Corp. Probe to Receive Reward for Helping the Justice Department

In the wake of securities lawsuits accusing Bank of New York Mellon Corp. of defrauding investors and overcharging them on billions of dollars in currency trades over 10 years, now comes news that the government had been working with a secret whistleblower. Grant Wilson, who worked at the bank’s small trading desk in Pittsburgh, has reportedly been assisting with currency-trading probes into BNY Mellon for the last two years.

Last week, the US Justice Department and New York’s attorney general submitted separate civil lawsuits accusing BNY Mellon of misleading or defrauding public and state pension funds, universities, private companies, and banks with their foreign exchange scam. The US Attorney is also claiming mail and wire fraud. Meantime, the New York Attorney General Eric T. Schneiderman wants the bank to pay up $2 billion for the alleged securities fraud. A spokesman for BNY Mellon denies that clients were given the “least favorable” currency rates.

State attorneys general in Florida and Virginia have made similar allegations against BNY Mellon. They too have filed lawsuits based on the information from Wilson’s whistleblower case.

Wilson and the whistleblower group that he belongs to could receive up 25% of whatever BNY Mellon ends up paying for lawsuits stemming for the information he provided. Wilson’s role was kept so secret that the bank’s lawyers never discovered him. He no longer works there.

According to the Wall Street Journal, Wilson kept his involvement a secret by using a shell partnership and holding meetings on the weekends and in different restaurants. In addition to telling attorneys and law enforcement officials about the financial scam and how it worked, he also gave them internal documents that charted BNY Mellon’s profits.

Whistleblower Lawsuits
Filing a Massachusetts Qui-Tam actions , also known as whistleblower lawsuit, on behalf of the government because of fraud that is being committed against it may result in financial recovery for the whistleblower.

Secret Informant Surfaces in BNY Currency Probe, Wall Street Journal, October 12, 2011
The “Secret” Whistleblower at BNY Mellon: How Grant Wilson and his New Partner in No-Crime, Harry Markopolos, Are Changing the Game, Forbes, October 13, 2011

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