Wachovia Securities reached a settlement with its former head of CDO research, Arturo Cifuentes, who filed a Sarbanes-Oxley complaint against the bank arguing that he was improperly dismissed. The settlement, however, may not mean the end of the Securities and Exchange Commission's ongoing investigation into the matter.
Cifuentes contends Wachovia fired him last April after he had refused to sign an analyst certification on a research report stating that his compensation was not tied to his recommendations. He subsequently filed a whistleblower complaint with the Department of Labor's Occupational Safety and Health Administration (OSHA). Under Sarbanes-Oxley, OSHA has jurisdiction over whistleblower complaints in the securities industry.