E Street Journal


Case Name: Jaludi v. Citigroup
Case Number: 3:15-cv-02076-MEM-JFS

United States District Court Middle District of Pennsylvania

Jaludi developed an application called WAIS that automated a function performed by approx 30 highly technical staff members and saving millions of dollars per year but was told to relinquish ownership, management and operation control of the application to another team then rated below average in the yearly performance review.

Jaludi took a ‘dysfunctional’ team composed of 34 technical staff members managing 12,000 servers with a four week turnover for monitoring and in two years transformed it into team of 24 members managing 85,000 servers with instant monitoring but had the team taken away, demoted and rated below average.

Jaludi founded the family banking concept in the 2012 global banking challenge, picked as the co-winner of a concept expected to generate $100 million in revenue the first year according to a study by marketing firm IDEO, but was rated below average that same year because he raised objections to O&T’s hiding of serious system problems, preventing him and his team from meeting their goal of reducing these types of problems.

Jaludi authored The Command Center Handbook and The Art of Process Improvement, and while Citigroup was undergoing a Command Center consolidation and massive process improvement efforts, he was not permitted to aid executives leading these efforts, even though numerous requests were made for his help. Instead, Jaludi was rated below average and  not meeting expecations and then terminated.

On April 21st of 2013 Citigroup made an example of Jaludi by demoting then dismissing him after 24 years of exemplary service in retaliation of his protected whistle blowing activities regarding Don Callahan’s O&T division’s hiding of critical system problems affecting large numbers of customers or large dollar amounts from business division executives and federal regulators. However, Don Callahan’s group continued the retaliation by preventing Plaintiff from obtaining employment through October 15th of 2015, leading him to file this lawsuit that same month.

Here is Citigroup’s motion to compel arbitration, where Citigroup attorney’s attempt to evade Dodd-Frank by claiming each arbitration agreement compliments the previous one. This is counter to what Citigroup attorney’s claim in most lawsuits, violates Dodd-Frank and would not pass an OCC regulatory audit.

Citigroup’s creative motion to bypass Dodd-Frank

On 8/30/2016 this lawsuit was closed and sent to arbitration despite the Dodd-Frank Wall street reform act prohibiting such actions. Citigroup is still acting above the law with impunity as the SEC, regulators and DOJ look the other way.

The closure was appealed with the Third District Court of Appeals (case # 16-3577). An Amicus Brief was filed by the DOL in support of Jaludi on 1/13/16, highlighting Citigroup’s violation of Sarbanes-Oxley. The SEC, tasked with enforcing Sarbanes-Oxley and protecting whistle blowers, was asked to intervene but so far has failed to do so.

A powerpoint presentation of  WAIS, an app Jaludi founded which closed security gaps that may have allowed unauthorized access to production systems and sensitive data, and other major contributions Jaludi made while employed at Citigroup are available at Slideshare.  WAIS was declared the global standard tool by Citigroup’s security committee, replacing multiple large teams across the world performing this task manually using high priced vendor tools. These contributions are currently in use at Citigroup, saving millions of dollars a year, despite the bank claiming Jaludi failed to serve any useful purpose.


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