Question

Wall Street bond trader turned on the television one day and saw a news report accusing him of committing a large securities scam. This trader learned that his employer had accused him of creating $300 million of phony profits and, as a result, getting bogus bonuses of $8 million. He claimed he was innocent, and it took about three years for him to prove his innocence. In the months that followed the accusations, he was investigated by the SEC, the National Association of Securities Dealers, and the Justice Department. Three years later, the bond trader was cleared of all major charges brought against him

Required:
a. Assume that you are the employer. What type of legal action would you seek against this bond trader? Why?
b. To what type of court would your case most likely be assigned? Why?

Answer 1

A. From a civil standpoint, I will report the body of proof against the bond broker. Once the dissension has been brought to the attention of the offending party, a standard legal procedure will be followed. The protest will go into detail about the offence as well as monetary provisions for the damage suffered.

B. The case will most likely be signed to the district courts in which the company is registered.