BANC Investigation – Banc of California Securities Investigation
The Kehoe Law Firm’s class action BANC investigation concerns whether Banc of California and certain of its officers and/or directors violated federal securities laws.
On December 8, 2017, Bloomberg reported that a former Banc of California employee had filed a whistleblower lawsuit against the bank alleging, in part, that: revenue generated by BANC in 2016 was improperly carried over to the following year in order to inflate 2017 profits; and BANC had ignored its former Chief Financial Officer’s use of Company funds to patronize strip clubs.
On this news, Banc of California stock dropped $0.60 per share, or 2.76%, to close at $21.15 on December 8, 2017.
BANC Investigation – Los Angeles Times Reports: “Strippers, drugs and sex at Banc of California, former executive alleges in lawsuit”
According to the December 9, 2017 Los Angeles Times story:
Troubled Banc of California was a den of iniquity featuring on-premises sex, drugs and strippers, according to a lawsuit filed . . . by a former employee.
Heather Endresen, who was managing director of the bank’s small-business loan department, has charged that the company terminated her without cause, days after she took her concerns about activity at the Irvine home office to a corporate whistleblower hotline.
Her complaints included “male employees having sex with woman in their work offices,” “visiting strip clubs with employees” and “using company funds to pay for strippers.”
Endresen’s lawsuit, filed . . . in Los Angeles Superior Court, further alleged “illegal drug use” by former Executive Vice President and interim CFO Francisco Turner, and accused him of “having sex with certain employees.” Banc of California announced Turner’s resignation in June.
. . .
The suit filed by Endresen, who worked at the bank from 2014 through May 2017, alleges serious breaches of financial propriety as well as rampant sex and drug use. Endresen has charged that company officers engaged in a “sham” effort to shift millions of dollars in corporate revenues from late 2016 into early 2017 — partly to avoid paying bonuses earned by Endresen and others.
BANC Investigation – Banc of California Investors
If you are a Banc of California investor and have questions or concerns about the Banc of California class action investigation, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form on the right or e-mail [email protected].