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Former HSBC V.P. John Cruz on his wrongful termination lawsuit against HSBC.
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HSBC facing more legal problems tonight -- whistle blower worked as a former vice president and senior business manager.
Is suing the largest.
Bank.
The second largest bank in the world.
For ten million dollars John Cruz says he was wrongfully terminated from HSBC after he reported on suspected fraudulent accounts used for money laundering.
Back in 2009.
Yesterday HSBC agreed to pay -- fine of one point nine.
Billion dollars for transferring billions of dollars.
For nations including Iran enabling Mexican drug cartels to move their money illegally through Americans observers.
To put the -- in perspective.
HSBC made sixteen point eight billion in profits last year joining us now is John -- -- the whistle or the man behind they.
Latest lawsuit.
And John -- first thank you for being here.
I wanna you wanna turn to first the spine and we find out from Lanny brewer.
The assistant attorney general.
That there will be no.
Individual prosecutions.
Even though they have the evidence of all of this wrongdoing.
And working HSBC.
With terrorists.
Nations sponsoring terrorists.
And the Mexican drug cartels.
Your reaction.
-- I think it's totally wrong I truly believe that executives need to be responsible for the action legal actions taken place at the bank.
And in -- in your judgment you know the bank.
Why would this not why would there not be an individual prosecution.
Well for what has taken place at this as I said -- second largest bank in the world.
I don't know why -- is -- individual prosecutions being taken place but the evidence they have.
That's -- question -- BS the law enforcement.
And that -- the other question obviously is why's it taken so long for you to.
To move forward to get a response from the bank and and to be treated fairly here.
As a whistle more -- protected under whistle blower laws.
I we think I would be protected.
On the whistle blower laws and I think whistle -- lawyers need to be.
More pronounced today community they need to be increased more to protect the whistle blowers who want -- needs to protect -- -- laws that we need them.
Did you think you would be protected.
I didn't know.
I didn't know but I know that I needed to do something.
This your case goes back to 2009.
You're taking over a number of branches.
For HSBC in the New York area you go -- to drum up more business tell us what you found when you started going out to the -- places of business.
That were on your your list of customer accounts.
Tell us what you found.
Well I found that businesses did not exist.
Actual physical locations did not exist actual owners did not exist it was just a paper company I would say that was.
Within the bank -- you don't computer system showing transactions and all taken place but the businesses did not exist.
So you've been going up to drum up more business or offer new services.
Two I would -- -- make certain of the account.
Is is secure with your bank.
So you -- -- there and you find one closed.
Shop.
When those boarded up what did you find.
Some companies I found were empty lots some companies that founded on existing buildings they were supposed to be in -- some did not exist at all anywhere to be found so when you got back to.
To them to the big bank or what did you entire bosses the big shots.
I told my -- is much appears exactly what I found.
And I -- reported to as suspicious activity.
And and you thought it was what I -- did you have a sense that it was money laundering.
I didn't know what it was my job is to actually manage accounts my job is she -- there and it's not the I reported it and I wanted to get them out of my book of business because there is nothing to manage and they are supposed to handle it in -- legal manner.
And and you became frustrated with the what happened what was finally the reaction of your your managers.
Well my manager of winding up writing me up for poor job performance.
And not handily accounts for not doing my job.
And and and then you were fired in 2010.
And you think it's my list of -- right.
I would I would fire I guess in 2010 -- reporting everything to -- security.
With the bank and the law enforcement authorities right I want -- yes I think the law enforcement I didn't.
Let the bank know that I was going to -- wasn't through really else.
Through speaking for them at all I did let -- know I was going to law enforcement everything.
And the result of that is at least you're -- your part -- what we saw transfer yesterday.
That is one point nine billion dollars in fines but no prosecution.
That is correct your lawsuit is moving forward how long before you think there will be resolution.
I do not know I -- not know how long quest system will take I mean.
It's been a few years now just in the making so we just filed the lawsuit yesterday.
So we will see what happens ratio at the bank has us how many days respond to our crews thank you very much for being here we -- -- -- -- a lot.
Thank you.
