Citigroup violates Dodd-Frank Anti-Arbitration and Sarbanes Oxley Whistleblower protection Laws

Citigroup violates Dodd-Frank Anti-Arbitration and Sarbanes Oxley Whistleblower protection Laws as Regulators and Congress Look the Other Way.

Jaludi, a process improvement, problem management, incident management, command center and automation expert, claims Citigroup retaliated against him when he blew the whistle on unethical behavior in the O&T division by dismissing him and preventing him from gaining employment in IT.

When Exxon Mobil CEO Rex Tillerson called Citigroup to complain that thousands of customer transactions totaling hundreds of millions of dollars were missing, Jaludi was asked by a business division CEO to investigate. When Jaludi found these types of problems were being caused and hidden by O&T he was told by an O&T senior executive to immediately stop his investigation then dismissed a few months later.

Jaludi won Citigroup’s 200 year anniversary global future of banking contest, with participation from over 65,000 employees with an idea for family banking. A study by marketing firm IDEO, hired by Citigroup, estimated the idea would generate over $100 million in revenue just in the first year! Jaludi received absolutely no compensation for the winning entry, other than a pink slip claiming he failed to meet business expectations.

Jaludi developed an application called WAIS (Web Automated Information System) 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. Jaludi, whose job was not to find or develop applications developed WAIS after Information Security said there was no other alternative to the manual process. The process which WAIS replaced passed O&T audits because O&T executives told auditors it was only used for development systems. The process finally failed when an auditor found business units using it to gain access to production systems. The manual process, used for many years, had the same vulnerability which resulted in a breach at Target. This vulnerability as well as all other audit violations were resolved when all emergency access requests were moved to WAIS.

When the number of business outages kept increasing due to preventable server crashes various heads of the monitoring team kept insisting application limitations in the Tivoli monitoring product kept their hands tied. After years of changing management, which kept blaming IBM and the need for additional headcount to meet increasing workload, the team was given to Jaludi.

Jaludi took the monitoring team, described as ‘dysfunctional’ by O&T executives and composed of 34 technical staff members managing 12,000 servers with a four week turnover for monitoring and in two years transformed it into a team of 24 members managing 85,000 servers with instant monitoring while completely eliminating all business outages caused by preventable server crashes. The team was then taken away from Jaludi after he reported unethical practices within O&T.

Jaludi was then rated below average, as not meeting business goals after he raised objections to O&T’s hiding of serious system problems from business division executives.

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 a lawsuit that same month.

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

United States District Court Middle District of Pennsylvania

Here is Citigroup’s motion to compel arbitration, where Citigroup attorney’s violate 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 amendment to Sarbanes-Oxley 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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