Recently, John Verble, the financial planner at Morgan Stanley who was a key confidential source in the FBI investigation into Pilot Flying J, filed a whistleblower lawsuit in federal court last week. Verble claims that he was fired after his important role in the investigation was discovered.
John Verble, a Morgan Stanley executive, filed the suit in Knoxville, Tennessee, in federal court. The lawsuit seeks to recover hundreds of thousands of dollars in back pay and brokerage funds held with Morgan Stanley that Verble claims the company has frozen. In a statement released shortly after the suit was filed, Morgan Stanley dismissed the allegations and stated it intends to fight the suit fully.
Verble played an important role in the FBI investigation that uncovered fraud at the truck stop chain Flying J. Verble wore a wire and assisted the FBI in its investigations into fraud. He claims that when a superior at Morgan Stanley became aware of Verble’s efforts, he physically threatened him.
The FBI investigation into Pilot Flying J related to rebates made to the company but never paid to trucking companies as a part of a fraud scheme that involved top level executives. Last year, Pilot Flying J, based out of Knoxville, Tennessee, accepted responsibility for the criminal conduct of its employees. It agreed to pay a total of $92 million in penalties in a settlement with the federal government. In addition, ten employees pled guilty to various charges.
Verble’s suit contains several allegations of wrongdoing. He claims that as a result of his assistance in the FBI investigations into Flying J he was retaliated against, discriminated against, then ultimately illegally discharged from his position. He demands that he either be returned to his previous position to receive damages equal to double his salary of about $360,000 until he reaches the retirement age of 68.
Verble additionally claims that during his time with Morgan Stanley, he became aware of numerous illegal activities, including those that violate the Sarbanes Oxley Act. He claims to have uncovered insider trading involving the office’s employees and clients concerning Miller Energy Resources, Inc. He also alleges that Miller Energy’s books were manipulated in an effort to conceal some transactions from shareholders along with the Securities and Exchange Commission.
Thus far, securities regulators and law enforcement officials have not probed the potential fraud involving Miller Energy and claim they have not received any complaints from Verble or anyone else that relate to the allegations now made in the lawsuit.
Verble was placed on administrative leave in 2013 the eventually fired. His public BrokerCheck record reports that he was fired for accepting third party funds, but Verble disputes this account. His attorneys claim his firing was a classic act of retaliation and reports that many facts will come out during the suit that are currently hidden due to ongoing federal investigations.
Barrett Law PLLC: Protecting Brave Whistleblowers Across the State
Despite the universally acknowledged importance of whistleblowers to the government and American public, thousands of whistleblowers experience retaliation as a result of their actions. John Verble is just the latest of many whistleblowers to lose his job due to his brave ac of coming forward to expose fraud. If you are a whistleblower who has or may have experienced any sort of retaliation, the Mississippi Whistleblower Attorneys at Barrett Law PLLC can help. Our attorneys understand the complex nature of whistleblower suits and will skillfully guide you towards a full recovery for the losses you experienced as a result of your lawful actions. Call the experienced whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free consultation.