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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
----------- --------- ------ ----x
JENNIFER SHARKEY
Pla i f f
10 Civ. 3824
- aga in s t -
ORDER
J .P . MORGAN
ADAM GREEN
t h e i r of f i
capac i t i e s
CHASE
& CO. JOE
KENNEY
and
LESLIE
LASSITER
in
a l and
i nd iv idua l
Defendants.
------x
A P P EA
RAN
C E
S:
Atto for Pla in t i f f
THOMPSON
WIGDOR & GILLY LLP
85
Fi f th Avenue
New
York
NY 10003
By:
Lawrence M. Pearson
Esq.
Attorne
for
Defendants
ARNOLD & PORTER
LLP
399 Park Avenue
New York NY 10022
By: Michael D.
Schi s se l
Esq.
1
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Sweet D.J .
Defendants
J.P.
Morgan
Chase
&
Co.
( JPMC )
and
Joe
Kenney ( Kenney ),
Adam
Green ( Green ) and Les l i e Las s i t e r
( Lass i t e r ) ( co l lec t ive ly , the Defendants )
have
moved fo r
summary judgment,
pursuant
to
Fed. R e iv .
P
56,
on
remaining cla im
of Pl a i n t i f f Jenn i fe r Sharkey ( S rkey
or
the
a in t i f f )
a l leged
in the Amended Complaint .
For
the
reasons
se t fo r th below, Defendants ' motion
i s
gran ted .
Prior
Proceedings
On October
22,
2009, Sharkey f i l e d a t imely complaint
wi th
the
Occupat iona l Safe ty and Heal th Adminis t ra t ion o f
the
U.S.
Department o f
Labor
("OSHA")
a l leg ing v io la t ions of the
Sarbanes-Oxl
Act of 2002,
18
U.S.C. 1514A
( Sarbanes-Oxley
or SOX ).
On
or about Apri l
12,
2010, OSH
i ssued
i t s
f indings
and
pre l iminary
order
dismiss ing her complain t . ee
OSH Order
(Apr.
12, 2010) (Ex. to the Decla ra t ion of Michael
D
Schisse l , ed
August 12,
2013 ( Schissel Decl . ) ) ("OSHA
2
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Orderft). Sharkey f i l e d
her
compla int wi th t h i s cour t on
May
10,
2010,
a l l ing the
same cla ims
under
SOX.
On June
1, the Defendants moved to d i
ss the
complain t . The Opinion and Order dated January
14,
2011 of t h i s
cour t
( the January 14
ft
held t ha t Shar
y
engaged in
a
pro tec t
a c t i v i t y under SOX
when
repor t ing
with
respec t
to a
rd
par ty , the
Su JPMC Cl ien t ( Cl ient
Aft
or
Suspect
Cl ien t
ft
) ,
but
t
the
il
1 a c t i
ty
repo
was
not
adequately a l leged the
o r ig in a l
complain t . ha
2011
W
135026, a t
*4
8 .
Shar y was
g
l eave to
rep lead
her
SOX
cla ims,
but
P l a i n t i f f ' s
s t a t e
law
ch
of
con t rac t
cla im
was
smissed with
pre j
ceo Sharkey f i l e d her
Amended Complaint
("AC
ft
)
on
February 14, 2011.
AC contains
a s
Ie cla im for an a l l
v io la t ion o f
whis t l
lower prov i s ion of
SOX,
namely t ha t
Pl a i n t i f f
blew
the whis t le on Client
A,
fo r which JPMC
r e t a l i a t e d
by
t e rmina t ing Pia
iff s
oyment. The
AC
inc
s
twe
paragraphs
a l l eg ing
t h a t
Shar
y
bel i eved Client
A was
v i ing one or more o f
the
enumerated SOX s t a tu t e s in
addi t ion
to money
laundering
AC ] ] 1,
17,
20, 26
7,
36-38, 43
44, 52, 57),
and
t h i r t y paragraphs and subparagraphs ou t l in ing
3
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the
purpor ted
f ac tua l bas i s
t ha t
gave
r i s e
to t h a t b e l i e f AC
25.
5.g,
27. 7 .q . ,
2 8 3 7 ) .
On ruary
3, 2011, Defendants
f i l ed motion
to
dismiss
the AC on the grounds t ha t (1) t h i s cour t lacks
j u r i s
c t ion
because
the newly
pled
a l l ega t ions
in
the AC were
not conta ined in Sharkey s OSHA
complain t ,
(2) while the AC
conta ins
add i t iona l
c tua l
a l l ega t ions regard ing
the
purpor ted
suspi
ous ac t i v i t
s
of
JPMC's
c l i en t ,
t
f a i l s
to
s t a t e
with
any l eve l of i c i t y what t i s she a l l eged ly
repor ted
to
JPMC supe
sors t ha t
const
uted whis t leb lowing,
(3) t
AC
does not meet the eading requirements
of Ashcrof t v. Iqbal
556 U.S. 662, 129
S.Ct.
1937, 173 L.
.2d 868 (2009) and Bel l
At lan t i c Corp. v .
Twombly 550 U.S. 544, 127 S.Ct. 1955, 167
L.Ed.2d 929 (2007) because Sharkey st ll does
not
i de n t i fy which
s t a tu t e
enumerated
sox
she be l i eves
JPMC's
c l i e n t v io l a t
and
(4)
the
AC
f a i l s
to
a l l ege
t ha t
Defendants knew
or should
have
known
t ha t
she
engaged in
pro t ec t ed a c t i v i t y because
the
AC
f a i l s to sc lose
which
purpor t
communicat ions
or d isc losu res
cons t i tu ted her a l l eged whis t leb lowing.
On
August 19, 2011,
Defendants '
motion to
di ss was
ied ( August
19
Opinion ) .
See
Sharkey
v .
JP
Morgan 805 F. Supp. 2d 45
(S.D.N.Y.
2011) .
4
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n
June 14,
2013, Defendants
submit ted
a
l e t t e r
( the
June
14
Le t t e r
U
)
moving
to
s t r i ke the tes t imony of
P l a i n t i f f ' s
exper t , Anne Marchet t i ( Marchet t i
.
This
l e t t e r was t r e a t
as a motion, and
was
rd and marked fu l ly submit ted on
September
18, 2013. By order of October 9, 2013,
Marchet t i was
ermi able to
t e s t i f y
as to
those mat te rs and t r ansac t ions
whi
as
an
accountant , might t r i g g e r
concern under
S X (so
c a l l red f lags
, but
was prec luded
from t e s t i f y i n g as to
whether P l a i n t i f f ' s
be l i e f in suspect ing Cl ien t
A
and
recommending
t e rmina t ion was reasonable , or
fu r the r bo l s te r ing
P l a i n t i f f ' s
tes t imony as to i n t e rn a l mat te rs o f which
Marchet t i
no
personal
knowledge.
n
August 12, 2013,
Defendants '
submit ted the i n s t an t
motion
summary
judgment i n s t Pl a i n t i f f . This motion
was
hea
and
marked
11 submit ted
on
October 9, 2013.
acts
Knowledge
of
the
underlying
dispute in t h i s case i s
assumed descr ibed in
the August 19
p
on. The f ac t s below
are repea ted
in
p a r t
as re levant to
i n s t a n t
motions and
se t
r th in Defendants '
Sta tement
of Undisputed Mater ia l Facts
5
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( Stmt . )
and
Pl a i n t i f f ' s Counter Sta tement of Undisputed
Mater ia l Fact ( Counter Stmt . ) ,
pursuant
to Local Rule
56.1.
Par t i e s
Sharkey was h i red by JPMC in November 2006.
(Counter
Stmt. ~ 1 .
From
the
spr ing
of 2008 through August 5,
2009,
Sharkey, as a Private
Wealth
Manager
in JPMC's
P va te
Wealth
Management
("PWM")
Divis ion ,
was
supe
sed
by
Lass i t e r ,
who
was
head of the PW
un
in which P l a i n t i f f worked. Lass i t e r
repor ted to
Green,
then the
head
of PWM's Northeast Region, who
in tu rn repor ted to Kenney,
then
the Chief Execut ive Off i ce r o f
PWM.
Id. ~ ~ 3-4. )
KYC
Process and Cl ien t
A
Cl ien t
A
i s
a i en t
o f JPMC engaged in
mul t ip le
businesses .
(Stmt.
7.) As a Pr iva t e Wealth Manager, one of
Pl a i n t i f f ' s r e s pons ib i l i t i e s
was,
for each
c l i en t ,
to oversee
and complete the
Know
Your Customer ( 'KYC,)l
due
d i l i gence
As
P l a i n t i f f
descr ibes ,
KYC i s
a po l i c y implemented
by banks
to conform to
a Customer
Ident i f i ca t ion Program
. . . mandated
by
the Bank
Secrecy
Act,
T i t l e I I I of the USA PATRIOT Act, and f edera l r egu la t ions to
prevent ,
i n t e r
a l i a
money launder ing and t e r r o r i s t f i n a n c ~ n g . u (AC , 44
( c i t 31
C.F.R.
103.121)
.)
6
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ss
and
associ
forms.
Id.
5.)
This process
i s used,
in
par t , to i poten t i a l high
r i sk
factorsH
as
ated
with
JPM c l i en t s .
Id. 6.) The KY
process for
C l i en t A had
a l ready begun
when
i n t i f f was ass igned Cl ien t
A
in ea r ly
2009.
Id . q 9 .
Pr io r
to
a i n t i f f s involvement with Cl n t
A,
the
JPM
Risk Department had i den t i f po t e n t i a l
sk
re l a t ed
to the
c l i en t .
Id . q[q[
9-10.) In
Apr i l
2009,
Kathie
Gruszczyk ( Grszcz yk
H
) , a JPM
sk
Manager,
sent
Pla in t i f f a
memorandum summarizing
these
en t i a l
r i sks
fo r iff s
fo l low-up.
Id.
10.)
Most
of t
in format ion in t ha t
memorandum
was
co l l ec ted
by
sk
Department
P l a i n t i f f
was ever
assigned to
C l i en t
A
Id . q
9. )
P l a i n t i f f t e s t i f i e d
tha t ,
to
her , the
most
s ign i f i can t information in the
memorandum
was the l lowing:
i en t A and h is businesses had 50 bank accounts , some
of which
had
zero ba lances ;
Cl ien t A was in
the
diamond
and
id c a l l i ng
card
bus inesses ;
Corpora te documents
for
some of Cl ien t A's businesses
were
not in
JPMC's
f i l e s ;
No records for one Cl ien t
A ent y were
found
during a
background k per formed 2007;
7
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-One of Client A's businesses was
incorpora ted
in
I s r a e l ;
Client A had
reques ts to re money from
Colombia;
Client
A had not provided a l l
documentat ion
s t ed
by pr io r ban rs ;
Client
A had
involved in
inesses
tha t
went
bankrupt in mid-1990s.
Client
A
executed
t rades in an escrow
account owned
by
a law firm (the Ostrager Account ) and P l a i n t i f f was
unable to
corrobora te
Cl ient A's s ta tement
tha t
he
was
author iz
to t rade in
tha t
account ;
s ted
by
Pl a i n t i f f ;
and
Client
A i
to
provide a l l
documents
Pl a i n t i f f was unable to con rm addresses
some
Client
A
inesses
.
.
11.) Sharkey a l so t e s t i f i e d
t t
the fo l lowing add i t iona l
informat ion
cont r ibuted to
her
be l i e f regarding Client A
I t was unclear whether Client A's
businesses
were
fore ign or domestic , whi
Gruszczyk s t a t ed was a
r i sk concern ;
I t was
unc
r how Cl A's bus inesses i n t e rac ted
with each other ,
o r who owned Cl ien t
A's businesses ,
which Gruszczyk s t a t e d was
a
r i s k concern ;
The source of wealth of t pr inc ipa l s of Client A's
businesses was
unknown,
and one
owner/signer on
ce r t a in Client
A
accounts
i s a
pol i ca l l y expos
person,
which
Gruszczyk
s t a t ed
was
a
r i s k
concern ;
-Although Client was
purpor tedly
i n t e res t ed in
cooperat ing with Shar y, Pl a i n t i f f mainta ins tha t
a r
f i r s t or second time
s
ke with him,
was unable to get to the phone, wouldn ' t re turn
[her] phone
ca l l s
[ JPMC] couldn ' t
ge t
the
informat ion
to f u l f i l l the
KY
i rements;
8
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-As Gruszc
k acknowledged,
JPM
had caught
Cl ien t
A
in
1
s ,
and he was
giv ing
Sharkey the run around;
-As Gruszczyk
acknowledged,
Cl ien t
A had
judgments / l i ens f i l e d
aga ins t
him fo r over
$33,000,000,
and
banks
t h a t
worked
with
Cl
A
aimed
over $50,000,000 in
losses when a bus iness
run
by Cl i en t
A was fo rced
in to bankruptcy;
- JPM
sk O ff i ce r Jan ice Barnes noted t ha t
Merr i l l
Lynch a l l eg ed C l i en t A's bus iness engaged
sys temat ic
manipu la t ion o f its books and
s u b s t an t i a l
f raud , producing
an
account of
d isappear ing as s e t s t h a t read[] l i k e
a
mystery ;
and
- Cl ien t A was in the diamond/gem bus
s s ,
reques ted
wire
t r an s f e r s
from
Colomb
fo r
o f emeralds .
(Counter
Stmt.
11,
44,
45.)
The Ostrager Account
In t h e course of the KY process ,
P l a i n t i f f
l earned
t h a t Cl i en t A had been execut ing t s in
an
escrow account ,
the
Ost rager Account , a t JPMC was owned
by
a law f i rm ( the
Ostrager Firm ) .
Id . 12-13. ) T Ost
r Firm
represen ted
and still r ep re s en t s
A
in mul t ip le
l i t i g a t i o n s concerning
in
o f
pa ten t s owned by
Cl ien t
A.
Id .
12. )
Ost
Firm
depos i t ed
proceeds
from those l i t i g a t i o n s in to
the
escrow account , and then
au th o r i zed Cl i en t A
to
en te r
t rades with
funds
from the
accounts . When
i
brought
Cl i en t
A's t r ad ing
in t h a t
9
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account to L as s i t e r ' s a t t en t ion , Lass i t e r t o ld P l a i n t i f f
to
f ind out
.
.
what were the reasons
for
it and to
make
sure
we
had
appropr ia te
documentat ion . Id . 13.)
P l a i n t i f f could not
l oca t e
a
wri t ten au thor iza t ion , but
she
asked
Cl ien t A
i f
he
was
author ized to t rade in
the
account. Id . 14.) Clien t
A
explained
to P l a i n t i f f
t ha t the funds
in
the escrow
account were
proceeds from paten t l i t i g a t i o n s ,
and
t ha t the Ost rager Firm had
author ized him to
t rade in
the account .
Id .
P l a i n t i f f
at tempted to contac t
the
Ostrager Firm to conf i rm
such
author iza t ion .
Id . 15. ) She
then
was t o ld
to
contact a
spec i f i c ind iv idual a t
the
f i rm, whom
she
did not reach desp i t e
mul t ip le messages.
Id . 15 . )
Afte r P l a i n t i f f
was
te rmina ted , JPM confirmed with
the
Ostrager Firm t ha t Cl ien t
A
was author ized
to
t r ade
in
the
escrow account , and
JPM
employees
located
the wri t t en
au thor i za t i on in JPMC's f i l e s t ha t
P l a i n t i f f contended
she could
not
f ind . Id . 25-26.)
In
addi t ion , P l a i n t i f f contends t ha t she
asked Clien t
A
to provide ce r t a in corpora te documenta t ion and
information
requi red
by
the
KY process ,
and t ha t
Clien t A
produced
some,
but not a l l , of t ha t
information.
Id .
20.)
P l a i n t i f f does
1
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not
i d en t i f y
what
in fo rmat ion
Client
A had not
produced,
but
Conce
JPM
has
s ince obta ined KY in fo rmat ion from i en t A
Id.
n
25.
r t ed Concerns
and Writ ten
Recommendations
Based on the above in fo rmat ion
regarding Client
A,
Pl a i n t i f f
c la ims
she
became concerned t ha t Cl ien t
A was
poss ib ly
engaging
in
i l l e g a l
a c t iv i t y ,
and
voiced
those
concerns
to
her
superv i so r
Lass
e r
and
to
Gruszczyk
in the JPM sk
Department .
Id. n
16.
P l a i n t i f f a l so began to
suggest
to
Lass i t e r
t ha t
the PW
Department
a t
JPM
e x i t
i t s
r e l a t i o n s h ip
with
Client A
Id . ) When Las s i t e r
asked P l a i n t i f f
fo r the
reasons , she responded
pr imar i ly
by saying t h a t
Cl ien t
A was in
the gem
business , he
was
I s r a e l i , he
had not provided a l l
KY
informat ion, he had
mult ip le
bank accounts and he was
t r ad ing in
the Os t rager Firm account . Id. n 16. Las s i t e r urged
Pl a i n t i f f to
obta in
the
miss ing KY
in fo rmat ion and conf i rmat ion
from the
Ostrager
f i rm,
and t o ld
her t ha t more format ion
was
necessary ,
given t ha t the
other
fac t s ,
without
fu r the r
s p ec i f i c s ,
were i n su f f i c i e n t to e x i t a
c l i en t .
Id.
n
17 .
Lass i t e r and the Risk Department urged
P l a i n t i f f a t various
po in t s
to
complete
her
KYCs,
including
the
ones for Cl ient A
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Id . ]I
18.)
Independent ly
of Cl i en t A
s s i t e r
maint t h a t
P l a i n t i f f was of the
s lowes t
under
r
superv i s ion to
complete
r
KYC forms in t imely manner. Id .
Eventual ly ,
Lass i t e r asked P l a i n t i f f
to put
i n w r i t
by the end of
Y
2009 any concerns
she
had about
Cl i en t A
and
her recommended
course
o f
ac t ion .
Id . 19.) On
Ju ly
24,
2009,
P l a i n t i f f sen t
an
email to
Gruszczyk, Las s i t e r
and t h ree
others
(excluding
Green and Kenney), s t a t
t h a t
the
i n format ion
c o l l e c t e d fe uncomfo
e regard ing
[Cl ient
] ly
r e l a t i o n s
and the na tu re of i t s bus inesses as well as
i t s
r e l a t ed
e n t i t i e s , and
she had not r ece iv ed a l l the
documenta t ion and i d e n t i f i c a t i o n to s a t i s our s t an d a rd
Know
Your Cl i en t requ i rements .
I d . ~ 2 0 . )
P l a i n t i f f
recommended
t h a t we
discuss
a
s imple
way
to
de tach t
r e la t ionsh ip from
t
PW metro
bus iness .
Id . )
P l a i n t i f f did
not
recommend
a l l l i n e s of bus iness a t JPMC sever t r
r e l a t i o n s h i p s with Cl i en t A but i n s t
s t a t ed :
I want
to
be
mindful
of the fac t
other
LOB's [ l ines
of
bus ss] with in
t f i rm
have
r e la t ionsh ips with
t h i s c l i e n t and /or
ts r e l a t
e n t i t i e s
may
wish
to r e t a i n some or a l l of t h e i r bus
s s .
Id . P l a i n t i f f
d not
mention
any
i l l e g a l
conduct o r s p ec i f i c
12
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unlawful a c t i v i t y
which suspec ted Cl ien t A to be
engaged.
Id .)
r reviewing Sharkey s
e-mai l , Las s i t e r and
Gruszczyk
discussed it with P l a i n t i f f . 21) , and Lass i t e r
agreed to t e rmina te JPMC s r e l a t i o n s h ip with
Cl ien t
A in
re l i ance
on P l a i n t i s
rep re sen ta t ion
t h a t
Cl ien t
A had
not
provided a l l
KY
documenta t ion t h a t P l a i n t i f f
cla imed she had
reques ted . Id .)
Gruszczyk
purpor ted ly
r
s en t
P l a i n t i f f
sample l e t t e r s used
by
JPMC to e x i t c l i e n t re ionsh
s .
Id.
22.)
After
JPM t e rmin a t P l a i n t i f f , JPM
l ea rned
t h a t
P l a i n t i f f had not informed Cl i en t A
t h a t KY
documents
were
still
outs tanding.
Id. 24. ) Cl A was
su rp r i sed
to
lea rn
t h a t
JPM bel Cl i en t A still
owed
KY documents to the
bank. .
Promptly a f t e r l e a rn i n g t h a t documenta t ion was
missing, Cl A
ded
a l l
in fo rmat ion necessary
to
comp
the
KY process .
Id. 25. ) Given
t the documenta t ion
i s s u es
noted by P i n t i f f in her
Ju ly emai l had
reso lved ,
Lass i t e r reversed the dec i s ion to
e x i t
the i e n t , and Cl i en t A
remains a
c l i e n t o f
JPMC today. Id. 27. ) No
e x i t
l e t t e r s
were
ever sen t
t o C l i en t A, and documents produced
by
Defendants
13
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August
2013
o u t l i n e p lans by
PW management
to expand t
re
ionsh ip .
(Counter
Stmt.
7.)
a i n t i f f ' s Per rmance Concerns
Pr iva te
Wealth
Managers
are
expec ted to unders t and
JPMC's a r r ay
o f
f i n a n c i a l
produc ts , genera te new bus iness
JPMC
and
complete the KYC process fo r new
and
s t ing
c l
s .
(Stmt.
5-6 . )
Less
t han
a
year
a f t e r
P l a i n t i f f
became
a
Wealth
r , her supe
so r s began no t ing i s s u e s with
her r formance .
.
28.) For
example ,
Green was concerned
about
a i n t i f f ' s i n s u f f i c i e n t knowledge and
unders t and ing o f
va
JPMC
f inanc 1 produc ts ,
as
wel l as the
in
1 natu re
of her i n t e r a c t i o n s with c l i e n t s .
Id.
During
t 2009 mid-
year t a l e n t
review o f
the
hundreds
of employees wi th in
PWM
Mr.
Green p laced P l a i n t i f f on a watch list
cons i s t i ng
a list
i n g . Id. 30.) Addi t iona l ly ,
dur i t a l e n t
ew, Green r e c a l l e d being concerned about
P l a i n t i f f ' s con t inued
i l u r e ,
o f e who were s t
To demonst rate a s u f f i c i e n t
sp
o f our i nves tmen t s
product se t o r s k i l l
to
communicate t h a t wel l with
c l i e n t s and spec t s . She had shown s loppy work.
She con t inued
to ,
in the case o f
some c l i e n t
r e l a t ionsh ips , approach[]
them
in an over ly
cas u a l
way, which we thought r esu l i n
t hose
re t i o n s h i p s
4
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lop ing l e s s
ck ly o r
wel l than
we
hoped.
ex e rc i s ed j u d g men t .
[ in] her se
an inv i tee to a
i e n t
even t .
Id .
f[
28.
t oo
was
concerned about
iff s i n v i t a t i o n
o f
a non-JPMC mortgage broker to a
major
JPM
hos ted
c l i e n t
event .
Id . br ing ing a mortgage broker to the even t ,
Kenney b e l i
tha t
P l a i n t i f f
exerc i sed poor
judgment , given
t h a t
JPM i s ,
Ai
t h e
mort bus iness , and br ing ing
somebody
in
t h a t s t between us
our
c l i e n t s
i s
somethi t ha t
d o e s n t
make
sense a t
a l l , because we
do
mortgages, w e re
one
of
t h e
bes t
out
t he re a t
doing
it, and
in ing
in a mortgage broker to then e i t h e r go
shop
it
o r
j u s t
s t ep between, t ng
to
get paid
fo r us doing bus iness with our normal c l i e n t s
d o e s n t
make any sense whatsoever .
Id . While
Green
and Kenney were prepared
to
consi P l a i n t i s
te nat ion dur ing
mid-year
t a l e n t
rev iew,
Las s i t e r
was
o f more t ime to eva lua te .
She was g en e ra l l y more
suppor t ive and more opt imis t i c
about
[ P l a i n t i f f s ]
p o ten t i a l
than
U
Green
or
Kenney.
Id . f[
31.)
Las s i t e r
was,
though,
t ha t
P l a i n t i f f s
revenue genera t ion over-es t imated her e f f o r t s in
l op ing
15
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business , and by
the
lack
of
conf idence P la in t i f f ' s
l low co
workers had
in her
e f
s , espec i a l l y regard ing Shar
y ' s
ab i l i t y
to
fol low-up with
i en t s .
28.) Moreover,
Lass i t e r found t ha t a in t i f f fa i l ed to
rform adequate KY
l igence
possessed
a
casual a t t i t ude
toward her
job
r e spons ib i l i t s , her
KY s
genera l , and her approach to
Cl ient
A's KY s spe f i c a l l y . Id .
P
i n t i f f
a l so was unable
to pass the Ser ies
7 exam on her
f i r s t
two
a t t empts .
.
28 .
In
l
and
May
2009,
Las s i t e r had
a t l e a s t two
meet
with
PI
i f f
to
scuss these performance i s sues .
Id . 29.)
During one of those
meet ings,
Las s i t e r asked
Pla in t i f f to work
on these
i ssues with the hope
t ha t
P l a i n t i f f
would
remedy them.
Id . ) Lass i t e r has acknowledged t h a t
key
had
developed s ign i f i can t c l i e n t r e l a t i on sh ip s , and
Green commented t ha t by
middle of 2009, key 's]
performance
versus
metr ics
exceeded
expec ta t ions .
(Counter
Stmt. 28.)
Shor t ly
a
er the
d-year
t a l en t
review, in l a t e y
2009, the
o f f i c e r
manager of
a s
f i c an t
PW c l i en t
( Manager
Tit contacted
Lass i t e r
and
complained
t ha t
she had been unable
16
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to contac t i n t i f f and
P l a i n t i f f
had
not
r e tu rned
her
ca l l s ,
going
so f a r as
to
r e f e r
to
i n t i f f as a
phantom.
Stm t . [ 32.)
s s i t e r
re layed the conversa t ion
to
P l a i n t i f f
and asked
whether she had re turned
Manager T ' s ca l l s . .
[
33.
)
P l a i n t i f f
responded t ha t she had in fac t r e tu rned Manager
T's
ca l l s .
Id . )
Believing PIa
i f f ,
L a ss i t e r
ca l l ed
T, and a her second conversa t ion , L a ss i t e r aga in asked
Pla in t i f f
whether
had
spoken
Manager T. Id .
[
35. )
i n t i f f
aga
sa id
t ha t
she
had.
Id .
)
L a ss i t e r
press
Pla in t i , who then admi t ha t she had
not re turned
Manager
T ' s ca l l s ,
thereby
acknowledging
t ha t
she had l i e d to
L a ss i t e r
about the inc iden t .
2
Id .
[
36.) L a ss i t e r main ta ins
t h i s
caused
r to l o se t r u s t and conf in P l a i n t i f f , and became
a problemat ic s
ion
with an important c l , namely
Manager
T.
Id .
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business , of
t
ident . (Stmt. 37.) Grande adv is
Lass i t e r t ha t ,
under
JPMC's wri t t en
rsonnel
pol icy , d i
s ty
was grounds
t e rmina t ion . Id. ~ 3 8 .
Following t h i s conversat ion , b y e -m a i l on
Y
21,
2009, Green
wrote
to Kenney, FYI, j u s t as
I was
out ,
Lesl ie
posted
m
on an
inc ident
regard ing Jenn i fe r
rkey.
I
sen t her to but
it
i s ly l i k e l y
w
te
nate her
r i g h t
away.
As
you
r e c a l l ,
she
i s
ranked yellow
and watch
list. (Counter Stmt.
41.)
Kenney responded, 0
y
sometimes it doesn ' t
t ake
people to on t h e i r
own
f ee t .
Grande then consul ted with hi s supe
sor , Lee Gatten
( Gat ten ) ,
as
wel l
as
Padi l l a
( Padi l
) ,
both
in JPMC's
Empl e
Relat ions Group, Green. This
group c o l l e c t i v e l y
deci
t ha t P l a i n t i f f ' s
conduct
meri ted
t e rmina t ion . (Stmt.
41.)
During
the
conversat ions , ne i the r Cl ien t
A
nor
any
concerns
Pl a i n t i f f
had ssed
about Client
A
in the pas t were
ment
( Id .
40.)
discuss ion concerned
only
whether ,
in l i gh t of
P l a i n t i f f ' s
shonesty and pas t rformance
problems, her employment
should
be t e rmina t
( Id .
41.
According
to
Lass i t e r ,
P l a i n t i f f ' s
f i n a l ac t of
dishonesty
was
18
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the
s t raw
t ha t
broke
the
camel s back.
That t he re
had been
i ssues before ,
and
now
she had been un t ru th fu l , and
I j u s t
d i d n t see how we could move
forward .
Id .
g
41.
On August
5,
2009, Lass i t e r informed
P l a i n t i f f of
her
terminat ion for lack
of
judgment,
JPMC's
l os s
of
confidence
in
her , and her unt ru thfulness re l a t ed to the Manager T i nc iden t .
Id .
ll
42.
Grande had
a
s imi la r
conversat ion with Pl a i n t i f f .
Id .
During
these conversat ions ,
P l a i n t i f f
did
not
mention
Client
A
or the
KYC
process , or
deny t h a t she
had
l i e d to
Lass i t e r . Id . ll
43.
OSHA Proceedings
On October 22, 2009, Pl a i n t i f f f i l e d a
Complaint
with
OSHA
On
Apri l
12, 2010, a f t e r
a
fu l l inves t iga t ion ,
including
document
product ion and witness
in te rv iew, OSHA i s sued
prel iminary f indings
and
an order d ismiss ing the
Complaint
because Complainant
did
not engage
in
p ro tec t ed a c t i v i t y under
SOX.
OSHA
Order .
The
ppl icable
Standard
9
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1 Summary Judgment
Summary judgment i s
granted
only i f t he re l S no
genuine i s sue
of
mater i a l
fac t and the
moving
par ty i s
en t i t l ed
to judgment as a matte r
of
law. F R C P 56(c) ; see
Celotex
Corp.
v
Catre t t
477 U S 317,
322-23
(1986);
S S
Commc ns,
Inc. v Herrick Co., 360 F.3d 329,
338
(2d Cir . 2004) . In
determining
whether a
genuine i s sue of mater i a l f ac t does
ex i s t ,
a
cour t
must
reso lve
a l l
ambigui t ies
and
draw
a l l
reasonab le
in ferences
aga ins t the moving par ty . See Matsushi ta Elec .
Indus.
Co., Ltd.
v
Zeni th
Radio Corp. , 475 U S 574, 587 (1986);
Gibbs-Al fano v Burton, 281 F.3d
12,
18 (2d Cir . 2002) .
In addi t ion , cour t s do not t r y i s sues
of fac t on
a
motion
for
summary judgment, but
ra the r , determine
whether
the
evidence presents a s u f f i c i en t disagreement t o r equ i re
submission
to a
ju ry
or
whether t i s so one-s ided t ha t one
par ty must
preva i l
as a matte r
of law.
Anderson v
Liber t y
Lobby, Inc . 477 U S 242, 251-52 (1986).
Unsupported
a l l ega t ions
do not c rea te a mater i a l i s sue
of
f ac t . Weinstock
v Columbia
Univ. , 224 F.3d 33, 4
(2d Cir .
2000) .
The mere
exis tence
of
a s c i n t i l l a
of
evidence
in
support of
the nonmoving
pa r ty ' s pos i t ion i s l ikewise i n s u f f i c i en t ; t he re must be
20
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evidence on
which
the ju
could
reasonably
f ind
r
Pl a i n t i f f .
Andaya v. At las
Ai r ,
Inc . , No.
10
V
7878, 2012 WL 1871511, a t
*2 (S.O.N.Y. Apr. 30, 2012) .
2.
SOX Whist leblower
Claims
On a mot summary judgment on a
SOX
whis t leb lower
r e t a l i a t cla im, the pI n t i f f bears the
i n i t i a l burden
of
making
a
prima
f ac ie
showing
of
r e t a l i a t o r y
di sc r imina t ion .
i n sky
v.
Telvent
GI
S.A. , 2013 WL
1811877
a t 6
(S.D.
N . Y May 1,
2013) . In 0
r
to
do
so, an
employee must demonst ra te t h a t
(1)
she
ged i n p ro tec t ed
a c t iv i t y ;
(2) employer
knew
t ha t s engaged
i n p ro tec t ed
a c t iv i t y ; (3)
s
su f fe red an unfavo Ie
personnel
ac t ion ; and
a c t i v i t y was a cont ing f ac to r
in the
unfavorable ac t i o n . Id.
(quoting t e l v.
Adminis tra ve
Review
Bd. ,
United S ta t e s
Dep t o f
710
F.3d 443,
447
(2d
Cir .
2013)).
I f
a p l a i n t i f f
proves
se four e lements , a
defendant may rebu t t h i s prima
e case wi th c lea r
and
convinc evidence t ha t t
d have taken
the
same
personnel
ac t ion the
absence
of the pro tec t ed
behavior .
Betchel v. cilnin ew Bd. ,
U.S.
Dep t
Labor
710
F 443, 451 (2d Cir . 2013) (c i t a t ions
omi t t ed) .
The
(4)
the
2
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d e fen d an t s
burden under
Sect ion
806
i s
notab ly
more
than under
other federa l employee pro tec t ion s t a t u t e s , thereby maki
summary judgment aga ins t
p l a i n t i f f s
in Sarbanes-Oxley
s i t ion . / f d
e t a l i a t i o n cases a
more
f f i c u l t
I
Defendants Motion for ummary
Judgment
i s Granted
c t ion r
employees
o f
OX
prov ides
whis t l lower
publ i
y
t r ad ed
companies
i f ,
any o f f i c e r , employee,
subcon t rac to r ,
o r agent
discharge
[ s ] , t h rea t en [ s ] ,
[or] h aras s [es ] ,
an
employee in
t he terms
and cond i t ions
of
employment
because o f
any
l awfu l ac t
done
by the employee-( l ) to
prov ide in fo rmat ion , cause in fo rmat ion to be provided,
o r o t rwise a s s i s t in an i n v e s t i g a t i o n regard ing
any
conduct
which the employee
reasonab ly
l i ev e s
co n s t i t u t e s
a
v io l a t i o n of
any ru l e
o r r eg u l a t i o n o f
the
Secu r i t
s
and Exchange Commission,
or
any
p ro v i s io n o f r a l law r e l a t i n g to f raud i n s t
sh a reh o ld e r s , when t h e
i n format ion or
ass i s t ance
i s
provided
to
or the
s t i g a t
i s
conducted
by- A)
a
Federa l regu la to ry o r l a w e n
ement
agency; 8)
any
Member of Congress o r any commit tee of Congress ;
o r
C) a
person with supe sory
a u t h o r i t y
over t he
employee or such o t h e r person
working
fo r t h e
employer
who has
t he
a u t h o r i t y to i n v es t i g a t e ,
discover ,
or
t e rmina te misconduct)
18 U.S.C. 1514A. Sharkey has
a l l eged
t h a t her t e rmin a t io n was
mot
ed,
a t
as t in
p a r t , by
r ep o r t i n g
o l a t i o n s
t h a t
are
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protec ted a c t i v i t i e s under SOX
regard ing
Cl ien t A
and
as such
Defendant 's motion
should
be denied .
1.
Pl a i n t i f f
did
did
not Have a Reasonable
Enumerat in SOX
806
In order
to qua l i fy
as protec ted
ac t
ty ,
"an
employee' s compla int
must de
n i t ly
and
s pe c i f i c a l l y r e l a t e
to
one
of the s ix
enumerat
catego
s"
of misconduct con ta ined
in SOX 806, i . e . mail
fraud,
wire
fraud,
bank
fraud,
t i e s
fraud, v io la t ion
of an SEC ru le or regu la t ion , or
v io la t ion of a
federa l
law r e l a t i n g to fraud
i n s t
shareholders . 18
U.S.C.
1514A(a)
(1);
see
also Allen
v . Admin.
Rev. Bd. 514 F.3d
468,
476-77
(5th Cir .
2008);
Fraser I
2005
WL
6328596,
a t
*8
("Protected
a c t iv i t y
must
impl ica te
the
subs tant ive
law
pro tec t ed in
[SOX]
de f in i t i ve ly
and
s pe c i f i c a l l y . " ) .
Genera l
inqui es
do
not
c o n s t i t u t e
pro te
a c t iv i t y .
" [ I J n
order
the
whis t leb lower
to
be
pro tec t ed by
[SOX], the repor ted
in fo rmat ion must have
a
c e r t a i n
degree
of
s pe c i f i c i t y .
whis t leb lower must
s t a t e pa r t i c u l a r
concerns
whi
, a t the very l e a s t ,
reasonably
i den t i a
responden t ' s conduct t ha t the complainant be l i eves to be
i l l e g a l . " Lerbs v. Buca Di Beppo I n c . 2004-S0X-8, 2004 DOLSOX
LEXIS
65,
a t
*33-34,
2004
W 5030304(U.S.D.O.L.
June
15,
2004) .
23
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complaining employee 's be l i e f t t his
employer 's
conduct
v io la ted one of the enumerated r i e s must be both
objec t
ly
and sub jec t ive ly
reas
Lesh insky v . Te lven t
S. A.
10 C
v.
4511 JPO) ,
2013
W
18811877
S . D N . Y.
a
y 1,
2013)
.
Sharkey ' s repor t s t o Defendants as t o C l i en t
A
do not
co n s t i t u t e
pro tec t ed
a c t iv i t y .
P l a i n t i f f
f a i l s to d e f i n i t i v e l y
and
spe f i c a l l y
r e l a t e
her a l lega t ions
to
one
of the s ix
enumerat
ca tegor i e s
of
misconduct under
Each of the
enumerat
i e s
requi re
a scheme or
a r t i f i c e
to
defraud.
18
U.S.C.
1514A(a) (1);
Sharkey
I I 805
F. Supp.
2d
a t 55.
Pl a i n t i f f
u t t e r s
words t ha t her a l l eg a t i o n s s
r t
t ha t
Client
A
was
mail , wire ,
bank
or
s e c ur i t i e s
fraud,
but
does not how her fac ts support a s
or
a r t i f i c e
to
defraud, f
l en t in t en t ,
who was
being
def
by Client
A,
the nature
of purpor ted fraud,
o r
most
ant ly ,
how
these a l lega t ions
meet
the elements of the enumerat ca tegor i e s
required under SOX. See Nielsen
v.
ECOM Tech. . , No.
12
Civ. 5163 KBF) , 2012 W
6200613,
a t
*6
(S.D.N.Y.
Dec. 11, 2012)
(d ismiss ing aim
i l u r e to
a l lege f ac t s
re
o r
d i r e c t ly
and c a l l y r e l a t i n g
t o ba s i c e lements of
enumerated
s t a t u t e s ) ;
see
a l so Andaya 2012 W 1871511, a t *4
4
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( What
i s miss ing
from these
a l lega t ions
i s cr imina l conduct ,
shareho lder f raud , o r f raudulent i n t e n t ) .
n t i f f ' s c i t ed preceden t invo lves
concre te
a l l ega t
s
o f
p o ten t i a l wire
or mail f raud o f f raud aga ins t
shareholders , and
r e s u l t i n g
oppos i t ion of
the defendants
a t
i s sue . See e .g . Leshinsky v.
ven t
GIT S.A.
2013 W
181187,
a t *5-15
(S.D.N.Y. May 1, 2013) (denying summary
judgment
where
p l a i n t i f f
complained
t ha t a company propos
using a
low
overhead r a t e i n t e rn a l l y ,
while
prov id ing a higher
r a te
to
make
appear
t ha t the company had reduced
i t s
p r o f i t ,
and was then cu t o f f
from
involvement in the process and l a t e r
t e rmina ted) ;
Mahony
v.
Keyspan Corp. 2007 W 805813, a t *1-2
(E.D.N.Y.
Mar.
12,
2007) ( p l a i n t i f f
repor ted ano ther 'S
concerns
about
ce r t a in
account ing p r ac t i c e s
of
a
publ ic company, which
could
r e su l t
in
f inanc ia l s ta tements
t were misleading
to
shareho lders ) ;
Perez
v . Progenies
Pharmaceut ica ls Inc .
2013
W
3835199,
a t
*1-4 (S.D.N.Y. Ju l . 24, 2013) ( p l a i n t i f f
complained
about
press
s ta tements
bel i eved
were incons i s ten t with the
ac tua l
r e su l t s
o f
a c l i n i c a l
t r i a l
and t h e r e fo r e
i l l e g a l
and was
almost immedia te ly t e rmina t
) . In
con t ras t ,
P l a i n t i f f does not
even
mention the elements requ i red by s t a tu t e s , o r expla
how
a l l eg ed misconduct q u a l i f i e s
fo r a
sp e c i f i c ca tegory
25
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enumerated
under SOX.
Ins t
Pl a i n t i f f r e l i e s almost
exc lus ive ly on
her purpor ted l i e f
t t Cl ien t A
was engaged
in
money l aunder ing , which i s not
a
cr imina l s t a tu t e spec i f in
SOX nor i s an
SEC regu la t ion or a
law
a t ing to f raud
aga ins t shareho lders .
3
Even
i
P l a i n t i f f
reasonab ly bel i eved
4
t ha t
Client
A
was
engaged
in
money l aunder ing , such be l i e f
cannot form
the
bas is for a
SOX
whis t leb lower
cla im. See
Sharkey v . J .P. Morgan
Chase
& Co.,
e t a l .
805 F. Supp. 2d 45,
56
(S.D.N.Y.
2011)
( SOX
proh ib i t s
an
employer
from r e t a l i a t i ng
aga s t
an
employee
who
complains
about
any of
the
s ix
enumera
ca tegor i e s
of
misconduct
N
) .
Sharkey
has thus f a i l
to repor t formation with a ce r t a in de of
i f i c i t y
or
par t i cu la r concerns,
which,
a t the
very
l e a s t ,
reasonably
iden t i fy ,N conduct impl ica ted by the enumerated s t a tu t e s .
See,
Pl a i n t i f f a l so
c i t e s to
the Pat r io t
Act,
which
too
i s
not an enumerated
s t a tu t e in
SOX
4 Pl a i n t i f f ly a l leged
fac ts su f f ic ien t to
support a
motion
to
dismiss
as to her reasonable be l ie f , inc luding a l ions t ha t Cl ien t A (1) re fused
to provide business and f inancia in format ion; (2) t raded in the
Ost rager Account
without proper
au thor iza t ion ;
(3) stymied Pla in t f f ' s
e f fo r t s to comply with KYC
s
under
the
Bank Act, Pa t r io t
Act, and other
federa l
s e c u r i t i e s laws; and (4) deal t in merchandise from
Colombia. See
Sharkey,
805 F. . 2d
a t
55-56.
Discovery has
s ince
yie lded
evidence
t ha t Cl ien t A did
have
au thor iza t ion tc t r ade in the
Ostrager
Account,
t ha t
Client
A
t o ld
Pl a i n t i f f the
source of
the
funds in the
Ostrager
Account, and t ha t Cl ien t
A did in
fact want to comply,
and
ul
t imately did comply, with his
bus iness
and f inancial . informat ion. See
Stmt.
lI lI
12,
20, 25.)
26
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Sha v
J P
Morgan hase CO
r
et
al . ,
No. 10 Civ. 3824
(RWS),
2011 W 135026,
a t *6
(S.D.N.Y.
Jan.
14,
2011) .
Further , Sharkey ' s
b e l i e f
was not sub jec t ive ly
reasonab le .
When P l a i n t i f f
her concerns to her
superv i so r , Sharkey s t a t ed t she f e l t uncomfor table
rd ing
the
[Cl ient ] fami ly r e l a t i o n s and
the
na tu re
of
ie s
i t s businesses
as well as
i t s re l a t ed
en t
and recommended
t ha t JPMC
detach
the
re t ions
the
PWM metro bus iness .
1f
(Stmt. II
20.) Pl a i n t i f f
went on
to say:
I want to be
mindful
of
the
fac t t ha t other LOB's
[ l ines of
business [ within the f i rm
have r e la t ionsh ips with t h i s c l i e n t and /or re l a t ed e n t i t i e s
and
may
wish
to
r e t a i n some
or
a l l of
t he i r
bus iness .
1f
Id . ) This
communication
did
not
ress
any
sp e c i f i c
concern
about
any
fraud
enumerated in
SOX
806,
but
merely t h a t Sharkey I t
uncomfor table ce r t a
areas
r e l a t i n g
t o C l i en t
A's
bus inesses . Fraser v
6958 (PAC), 2009 W 2601389, a t *8 (S.D.N.Y. Aug. 25, 2009) .
As
a Priva te Wea Mana
with
e leven
years of
in
the
f inanc ia l
indus t ry ,
t i s unre a l i s t i c
to
i n f e r
Pl a i n t i f f ,
i f she
had
a
ec t ive be l i e f
of
i l l e g a l a c t i v i t y by Cl ien t
A,
would have not
t
be l i e f e xp l i c i t ,
or
s t a t ed to her
superv i so rs t t
other
areas of the
f i rm
might
sh
to
r e t a i n
27
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Client
A's bus iness . Fraser
v.
Fidu a s t
Co.
Int 1 ,
No. 04 Civ.
6958
) , 2009 W 2601389, a t
*8
(S.D.N.Y. Aug.
25, 2009)
( in
grant
summary judgment
r oyer , cour t
noted t ha t emplo
s
three-month
delay
en
d r a f t i n g and
sending email compla ing
of
a c t i v i t y
cas t s
doubt on
[his]
subjec t ive
b e l i e f t h a t
the
[complained-o
c t iv i t y ]
co n s t i t u t ed
a
v i o l a t i o n . ) ,
a
d , 396 F. App'x 734
(2d
Cir .
20l0) .
ss , Pl a i n t i f f
could not have had
a
rea
b e l i e f t h a t
JPMC
was v io l a t i n g
the
Pat r io t Act
in
f a i l i n g
to
remove
Client A,
even i f such conduct were
ac t ionable
under
SOX.
Pl a i n t i f f
was
ven the i n i t i a l in fo rmat ion regarding concerns
wi th Cl A from Defendants,
and
t o ld to
fo l low-up.
(Stmt. JT
10.)
When
i f f expressed
t 1
concerns
a f t e r ewing
t h i s in
ion , Lass i t e r her
to develop
s
about
her concerns ,
and
supported
her
s ion to
te rmina te .
See
Harp
558
F.3d
a t 725-26 ( The conclus ion
t ha t
[p ia i f f ]
did
not
reas
be l ieve a
fraud was being committed
i s
fu r the r
bu t t r es
by [ supe rv i so r ' s ] subsequent ac t ions in the case ,
including t ha t superv i so rs never t o ld
p l a i n t i f f
to
s top
the
i s sue ) .
P la in t i f f ' s recommendation for
na t ion
on
the bas i s t
Cl ien t A re fused to
provide
KYC
informat ion ,
Defendants
and
began t ak ing s t s to
e x i t
8
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the
r e la t ionsh ip .
(Counter Stmt. rr 22
( c i t ing
Ex. 33: we have
ided
to e x i t
r e la t ionsh ip and w i l l be
sending a l e t t e r
t h i s
week ) ;
see
a l so
Ex. 48
(Grusczyk
to Pl a i n t i f f :
Mr. Kenney
sa id
the dec i s ion to ex i t was a
good
one . ) ) . There are
thus
no
c t s on which
a
i f f
could reasonab ly be l i
t ha t
JPM
was prepared
to
l a t e
i t s
ob l i ions
under
the Act:
if
ng,
the
f ac t s show
JPM
was t ry ing to meets
i t s KY
obl iga t ions
regard ing i en t
A
See
a v .
Charter Commc ns.,
Inc .
558
F.3d
722,
725-26
(7th
Cir .
2009)
(aff i rming
summary
judgment
in
favor
of
fendant p a r t l y
cause
superv i so r
support
p l a i n t i f f ' s
s t iga t ions
and
encouraged formal
documentation
of
concerns ) ; Allen v . Admin. Review Ed. , 514 F.3d
468,
481 (5th Cir . 2008)
( a s
[employer] not i n t en t iona l ly
cause
AS400
problem,
did not
conceal
it
and a t tempted
to
cor rec t it a
reasonab le
rson could
conclude
t h a t [employer] ' s
conduct did
not
o la te some
prov i s ion
of
federa l law
r e l a t i
to
fraud
aga ins t shareho lder s . ) .
Statements
A
were
not a
Facto r
in
Even i f P l a i n t i f f ' s a l lega t ions support
a
po ten t i a l
v io la t ion , Defendants have
es
l i shed t ha t they would have
29
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i
taken
the same
unfavorable
personnel
ac t ion in the
absence
of
t
pro tec t ed behav ior . Leshinsky v. Telvent
GIT
r
S.A.,
2013 WL
1811877,
a t *6
(S.D.N.Y.
May 1,
2013) (quot ing Bechtel v.
Adminis
t i v
Review
Bd
r
United States Dep t o f
Labor,
710
F.3d
443, 447
(2d Cir .
2013)) .
Under
JPMC's
Correc t ive Action
di s ty i s
independent
grounds fo r immediate
To
es
i sh
a
SOX
whist leblower c la im,
P l a i n t i f f
must
prove
protec ted a c t iv i t y ,
namely her s ta tements
to
JPM
A,
co n t r i b u t ed
to
her t e rmina t ion . See
Bechtel,
710 F.
a t 451;
Pardy
v.
Gray,
No.
07 Civ.
6324,
2008
W 2756331,
a t
*5
(S.D.N.Y. Ju ly
15, 2008)
( [AJ
con t r ibu t ing
fac to r
means
any which,
a lone
or
in
connect ion with
other
f ac to r s [ , J t
to a f c t in any way the outcome of the
dec i s ion . ) .
P l a i n t i f f
r e l i e s
us
l y o n
the temporal bas i s
between
her
a l l eged
pro tec t
and
her
t e rmina t ion
to
es t ab l i s h
to
causa t ion .
y the
protec ted a c t i v i t y
and
the
e ac t
i s
a
s i g n i f i c a n t
fac to r
in consider ing
a rcumstant 1
show
of
causa t ion .
30
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noted
t ha t
However, i t s presence does
not
compel
a
f inding
of causa t ion ,
i c u l a r l y when t he re
i s
a l eg i t ima te
in tervening
bas i s
the adverse ac t ion .
ser
v.
du ary
Trust
Co.,
I n t l , No.
04
Civ.
6958
(PAC), 2009 W 2601389, a t
*8
(S.D.N.Y.
.
25,
2009)
(quoting
ce v . Br is to l
Squibb Co. ,
2006-S0X-20,
2006 W 3246825, a t *20
(U.S.D.O.L.
Apr. 26, 2006)) . In such
cases, "mere
temporary proximi ty5, []
s not
compel
a f inding
of r e t a l i a t o r y
en t . Pardy v. Gray,
No. 07
Civ. 6324
(LAP),
2008
WL
2756331,
a t
*5
(S.D.N.Y.
Ju ly
15,
2008) .
Here,
the
undisputed
s ta tements
o f f ac t
ca t e t ha t
the l eg i t ima te ervening bas i s for
Sharkey ' s
te rmina t
was
her
shonesty to r superv isor , and her pas t r formance
def i c i enc
s6.
(Stmt. 28-32, 35-37,
41); see
also
Mil ler
v.
5
Pl a i n t i f f
a l l eges t ha t she began
the
whis t le
H
on
Cl ien t A
as
as
1
2009, over
th ree months
pr ior to
her te rminat ion . See Stmt
.
10,
16-17.) This t ime
frame
i s insuf f ic ien t
for temporal .
See
Fraser
v. Fiduc iary
Trust
Co., I n t l , No. 04 Civ. 6958 (PAC), 2009 WL 2601389, a t *8
(S.D.N.Y. Aug.
25(2009) ( in summary
j ,
cour t
s
three-month
between dra f t
ac t i v i t y
cas t s doubt on [his] sUbject ive be l i e f t ha t the
f - ac t iv i ty ] cons t i t u t ed a v io l a t ion .
U
6
P l a i n t i f f ' s
use
o f
Perez,
2013
WL
3835199,
a t *9
to
show
tha t
where
the re
i s
a
dispute
as to
the
conduct prompt
t e rmina t ion
summary
judgment
i s
inappropr ia te , i s inappos i te . In Perez , the re was
no c lea r evidence
of
insubordina t ion
or
wrongdoing
of
the
conduct r e la t ing to
the
pro tec ted
ac t i v i t y
by
the
a i n t i f f to j u s t i f y te rminat ion . Here, the re i s
c l ea r evidence
of
def i c i enc i es
by
Sharkey
unre la ted
to
the
a l l ega t ions
regarding
Client
A. Thus, the
ins tan t case i s dis t inguishable
from
P l a i n t i f f ' s c i ted authori ty ,
in
which the in tervening ac t s were
3
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S
f e l ,
Nicolaus Co., 812 F.
Supp. 2d 975,
989 (D. Minn.
2011)
( lack of
causa l connect ion between
i n t i f f ' s complain ts and
terminat ion
i s bo ls te red by P l a i n t i f f ' s on-going per formance
i ssues and the in te rven ing
events of May
2008
.
i s
no
competing
as ide from
P l a i n t i f f ' s
personal
ews-that
[employer]
was incor rec t
in
i t s assessment
of
her la ing
formance.
even if [employer] misjudged
r
r rmance,
' f edera l
cour ts not s i t as rsonnel department t ha t
reexamines
an e n t i t y ' s
business i s i o n . ' (quot ing Johnson
v.
S te in Mart, Inc . ,
440 F. App'x
795,
801-02
(11th Cir . 2011)).
Defendants
e
i sh
an
ex tens ive
record
of these
f i c i enc ies :
Sharkey was
on
watch
l i s t cons i s t ing
of
a
list
people who
were s t ruggl ing in 2009
(Stmt.
30) , t he re
were
concerns about
her sloppy
work, inappropr ia te c l i e n t r e l a t i
i n a b i l i t y
to l low-up, t y to handle
t
mate r i a l , and
ul t imate d ishonesty . 28, 30, 36.
Thus,
even if
unre la ted
to
i n t i f f ' s
pro tec ted ac t iv i ty . See id . ( c i t Harp v.
Charter
Commc'ns, Inc . , 558 F.3d 722, 727 (7th Cir .2009) ( in t event was
employer ' s revenue i s sues tha t r esu l t ed in widespread f S ) i Fraser v.
Fidu
Trust
Co.
In t ' l ( Fraser
I I I ) , No.
04-CV-6958, 2009
W
2601389
(S.D.N.Y. .
25,
2009) (grant
summary judgment where
a l leged
ac t i v i t y was repor t ing inaccurac ies about an
in te rna l
document
with
respect
to
asse t s
under
management,
but
the
l eg i t ima te in t e
bas i s
for
[p l a in t i f f ' s ]
t e rmina t ion
was
[defendant ' s ] de te rmina t ion
tha t [p la in t i f f ]
was to
es tab l i sh
an unauthorized fund
U
; Mil ler
v. S t i f e l ,
Nicolaus &
Co., Inc . ,
812 F
.2d
975, 989
(D.Minn.2011) (grant ing
summary
judgment where p l a i n t i f f was
t e rminated
as a r e s u l t of in tervening events ,
spec i fLca l
on-going
i s sues
and
a or customer ' s
about
iff's performance)) .
32
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Pl a i n t i f f
were ab
to es tab l i sh
a
prima fac ie case fo r
whis t leb lowing,
on the
undisputed
record , JPMC t e nated
a i n t i
fo r
reasons
unre la ted to
her
a l leged prot
ed
a c t iv i t y
and
which, in and of themselves , were va l id grounds for
t e rmina t ion . See Halloum
v. In t e l
Corp. ARB Case No.
4
068,
2006 W 618383,
a t
*6 ARB Jan.
31,
2006) f inding t h a t al though
employee proved
a l l
four elements of
whis t leb lower
cla im,
employer demonst ra ted t ha t
[emplo did
not i n t eg ra te
himself
o
[employer ' s ]
workforce
and
t ha t fa i l ed
to
perform
up
to
expec ta t ions . These were
s u f f i c i e n t ,
non-d i scr
na to ry reasons
to seek
his t e rmina t ion as
an empl The record a l so
ind ica t e s t ha t [employer] could
have red [employee]
immedia te ly
a f t e r l ea rning t ha t
he
had
su r r e p t i t i o u s l y recorded
conversat ions with
employees.
H
i n t e r n a l
c i t a t i ons omi t t ed) ;
see a l so
Pardy
2008
W
2756331, a t *6
(grant employer 's
summary
judgment
motion where employer proved by c lea r
and
convinc ing evidence
employee was terminated
r reasons
r a te
a l leged protec ted ac t i v i t y ) .
As such,
Pl a i n t i f f
has i l e d to show
a
causal connect ion between
her
purported
pro tec t ed
ac t
y and
Defendants ' dec is ion to t e rmina te
her
employment. im v
Boeing Co. 487 F
App'x
356, 357
(9th Cir .
2012) ( Because
[employer]
sen ted c lea r
and conv inc i
dence
of
i t s be l i e f t ha t
[employee] had been
insubord ina te
33
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and was subjec t to discharge
on
t h a t bas i s we need not reach the
ques t ion
of
whether [employee]
made
out
a
prim f c ie case .
Although
[p l a in t i f f ]
denied
he was subordinate , he presen ted
no
evidence giving
a
mater ia l ly d i f f e r e n t
account
of hi s
conduct . )
Even without Defendant 's l eg i t imate
in te rvening
bas i s
for d ischarging Sharkey, the re i s no evidence
es tab l i sh ing t h a t
P l a i n t i f f ' s
ac t ions
regarding
Client A in any way cont r ibuted to
her t e rmina t ion .
Several
people
were involved
in the dec i s ion
to terminate
P l a i n t i f f ,
in
p a r t i c u l a r Lass i t e r , Green, and
Grande, a l l
of
whom
were deposed.
Each
t e s t i f i e d
t ha t Client A
was
never
mentioned
in the
d i scuss ions
about
whether
to
terminate
P l a i n t i f f ,
but
r a the r
t ha t
the dec i s ion
was
based
on
Sharkey 's dishones ty
to
her immediate superv i so r fo l lowing
a
h is to ry
of
per fo rmance- re la ted
concerns. (Stmt.
28-32,
35-37,
41.) There i s
no
evidence t ha t Green
or
Kenney were even aware
of P l a i n t i f f ' s
a l leged
concerns
about Client
A. Far from
a
post-hoc
explanat ion for a t e rmina t ion dec is ion
or
a
pre-
t ex tua l motive , Defendants c l e a r l y exp la ined the reasons
for
terminat ion
to
Sharkey,
who
did not a t
the
t ime
dispute the
accusat ions
of dishones ty or voice
concerns t ha t
her
t e rmina t ion
was r e l a t ed
to
her
s tance
regard ing
Cl ien t A.
(Stmt. ~ ~ 4 0 - 4 1 ;
4
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see
l so Weiss v. JPMorgan
hase Co. 332 F
App'x
659,
663
(2d Cir . 2009) .
Pl a i n t i f f
contends t h a t Kenney's response
to
Green 's e-mai l about
Sharkey ' s
performance concerns , which
corresponds in t ime
to
P l a i n t i f f ' s
dishonesty to
Lass i t e r , t ha t
Okay.
Sometimes
t
doesn ' t t ake long for people t o s t ep on
t he i r
own
fee t , shows t ha t the Defendants were
wait ing for
an
excuse to f i r e Sharkey.
(Counter
Stmt.
CJ
41.)
Rather ,
t h i s
conversa t ion
confirms a
h is to ry
of
problems with Sharkey ' s
conduct
independent ly
j u s t i fy i n g t e rmina t ion .
onclusion
Because
Sharkey
has not s u f f i c i e n t ly presen ted what
fraud ex i s t ed
or how t
impl ica tes
an
enumerated ca tegory
under
SOX and because the re was independent cause for
her
terminat ion,
Defendant 's motion
for summary judgment i s granted .
I t i s
so ordered .
5
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ewYork
Y
December I t 2 13
6
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