Zachary - who claims in this suit and one filed in January that he blew the whistle on questionable practices at Countrywide KB Home Loans - alleges he was fired for his failure to perform illegal acts.
Mark Zachary, a former employee of Countrywide KB Home Loans in Houston, sued the company again last month, this time under the whistle-blower retaliation provision of the federal Sarbanes-Oxley Act. (see prior suit).
If you recall, the former regional vice president said he objected to using questionable appraisers known to inflate the value of homes. He also objected to practices that made it easier for applicants to get "stated income" loans. Countrywide has denied wrong-doing in the past.
This one invokes the whistle-blower provision of Sarbanes-Oxley. In this updated suit, Zachary repeats his claims that he was fired for raising concern about some dubious financial practices at the company. [Note: I've not been able to locate a link to the second filing]
According to the FierceSarbox blog: Mark Zachary has the potential to be a real thorn in the side of Countrywide at a tough time.
According to the Houston Chronicle: "His attorneys, Philip Hilder and Ian Scharfman, said he filed the second suit after waiting the required time for the Labor Department to conduct an investigation."
A representative with the Countrywide Financial Corp.-KB Home joint venture did not have a comment regarding the most current filing. However, a spokeswoman with Countrywide Financial said at the time of Zachary's earlier suit that it was without merit.
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