"Alayne Fleischmann: From witness to whistle-blower"

"Former JPMorgan Chase lawyer Alayne Fleischmann, a secret witness who said she gave federal prosecutors evidence of mortgage-securities wrongdoing she saw at the bank in 2006-07

"What he was doing, to me as a lawyer, is not how you're supposed to deal with securities fraud," Fleischmann added in the telephone interview. "At that point, I stopped believing the government was going to go forward with cases against individuals, no matter how strong the case was."

...neither the bank nor any of its executives faced criminal charges. That dismayed Fleischmann, a securities lawyer nearing the end of her 30s. She said she gave prosecutors detailed evidence against several JPMorgan executives, including two former bosses who'd pushed approvals of mortgage loans that were expected to be packaged into multimillion-dollar securities and sold to investors.

Years after she left the bank, federal prosecutors interviewed Fleischmann for what she said was a civil case focused on JPMorgan. They appeared to credit her account of what had happened, she said, seeming "almost giddy with the case they had."

Fleischmann said she had been scheduled to meet with other prosecutors separately weighing potential criminal charges against the bank last December, the month after record settlement was announced. The meeting never took place, she said.

...Her message, she said, is relatively simple: Concerned citizens should contact their elected representatives and voice their concern about financial wrongdoing and efforts to address that conduct by prosecutors and regulatory agencies.

Regardless of her allegations, the bank ultimately could avoid criminal charges, Fleischmann acknowledged."


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