Former Worker Files Lawsuit Against Capital One

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A former Capital One employee has filed a lawsuit against the financial giant, suing the company for fifty one million dollars. The former underwriter, Rachel Steinmetz, claims that she blew the whilst on fraudulent activity that took place in the subprime mortgage unit, and as a result was forced to resign.

The lawsuit was filed in US District Court in Manhattan. The former workers said that she was forced into ‘involuntary resignation’ by her bosses for refusing “to approve fraudulent, unlawful and bad loans”. The woman had worked as an underwriter for GreenPoint Mortgages before it was acquired by Capital One in 2006.

Steinmetz goes on to claim that her bosses forced her to authorise loans that contained fraudulent information, and in some cases even approved loans that she had already denied once she had left the office. She said that her working environment was made intolerable after she blew the whistle, and was forced to resign in June of 2006.

She had blown the whistle by contacting the New York State Banking Department about her concerns. She further accuses her former employers of violating Sarbanes-Oxley and banking protections by forcing her to resign in retaliation.

 

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