CDO analyst Arturo Cifuentes filed a Sarbanes-Oxley complaint with OSHA today alleging that his former employer, Wachovia Securities, attempted to influence and in some instances stop fixed income research reports. The complaint, filed Wednesday, alleges that Wachovia's "attempted influence was intended to coincide with firm deals and sales to its clients, as well as to please existing clients and potential clients," according to a written release by New York firm Malecki Law, which is handling the case on behalf of Cifuentes.

 

The Dept. of Labor has 180 days to decide whether the complaint violates Sarbanes-Oxley. The case can then move to federal court or could also move through arbitration, either instead of or in addition to court proceedings. While Malecki declined to release a copy of the complaint, Cifuentes reportedly alleges that Wachovia permitted compensation to its analysts to be directly and/or indirectly influenced.

 

Cifuentes was hired by Wachovia in July 2003 as a CDO fixed income research analyst; he alleges in the complaint that his employment with Wachovia ended when "he and the firm reached an impasse relating to the interpretation of what is required and what would be truthful when filing a Regulation AC report," according to Malecki. 

 

Neither Cifuentes nor a representative from Wachovia could immediately be reached for comment.

 

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