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MICHAEL C. LOSCALSO,
PLAINTIFF,
v.
DEFENDANT,
AND
AMERIPRISE FINANCIAL
SERVICES, INC.
DEFENDANT.
Plaintiff Michael Loscalso by and through his attorneys, Bell & Bell, LLP, hereby
PRELIMINARY STATEMENT
employment contract. This action arises under Section 806 of the Corporate
Case 2:10-cv-05347-NS Document 1 Filed 10/08/10 Page 2 of 15
and Criminal Fraud Accountability Act of 2002, Title VIII of the Sarbanes-
JURISDICTIONAL STATEMENT
2. This Court has original jurisdiction over all civil actions arising under the
which grants the District Court original jurisdiction in any civil action
secure equitable or other relief under any act of Congress providing for the
4. This Court has supplemental jurisdiction over any state law claims pursuant to
28 U.S.C. § 1367.
5. All conditions precedent to the institution of this suit have been fulfilled.
Complaint for de novo review with the United States District Court for the
Eastern District of Pennsylvania, as 180 days lapsed since the filing of his
Complaint with the Department of Labor without a final decision being issued.
This action has been filed within 60 days of the Office of Administrative Law
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VENUE
PARTIES
7. Plaintiff Michael Loscalso is a citizen and resident of Delanco, New Jersey and
13. At all relevant times, employees of Ameriprise and AFS acted as agents and
14. At all relevant times, employees of Ameriprise and AFS were acting within the
scope of their authority and in the course of employment under the direct
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Sarbanes-Oxley Act.
16. Defendants Ameriprise and AFS are “companies” as defined in Title 29, Code
of Federal Regulations Part 1980.101 and they are thus subject to the
contractor,” the position that Mr. Loscalso held with Defendants involved
significant control over Mr. Loscalso’s work, including his rate of pay and his
18. Mr. Loscalso also qualifies for protection under the Sarbanes-Oxley Act as an
FACTS
Branch Manager.
21. In his position with Defendants, Mr. Loscalso earned $260,000 per year
unlicensed staff.
22. The terms and conditions of Mr. Loscalso’s employment were set out
A.
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23. As set forth in detail below, Mr. Loscalso’s repeated complaints about
fraud, forgery and other practices which violated SEC rules and
Defendants.
termination by Defendants.
25. Specifically, during the time that Mr. Loscalso served as a Registered
data security.
violations reported.
advisors and the significant revenue they generated, rather than meaningfully
28. In one situation that Mr. Loscalso reported, an advisor’s assistant signed 30
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to issue a mere letter of caution to the advisor, despite the severity of the
violation.
29. Defendants also failed to advise their clients of the improprieties and deprived
example:
Advisor Andre Duffie was allowing his unlicensed assistant Denise Curry
31. In the Fall of 2009, Mr. Loscalso made several escalating complaints of
b. Mr. Loscalso was also involved in reporting an advisor who was involved
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was frustrated with the lack of response to his current and prior compliance
complaints.
received regarding his privacy/data security concerns and the fact that earlier
that month Mr. Loscalso had alerted Mr. Meixner to Ameriprise’s history of
Loscalso.
34. As Mr. Loscalso documented in his October 15, 2009 email, “When you
OSJ issues (through the years), and the difficulties I’ve had in the past getting
35. During the Fall of 2009, Mr. Loscalso was interviewed by Ameriprise’s
36. During a series of interviews, Mr. Loscalso was asked for various details
37. In an effort ensure that he had all of the relevant documentation relating to
these questions and his communications with these advisors, Mr. Loscalso
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38. After several weeks of Mr. Loscalso’s repeated attempts to secure these emails
from various individuals, Mr. Loscalso was told that he could not be granted
39. Mr. Loscalso then directed his inquiry to several high level members of
Catherine Sweet.
40. In an email dated October 23, 2009, Mr. Loscalso specifically stated that the
training/templates, issue escalation, etc., all of which will serve to support the
RP.”
41. Between the end of September 2009 and October 2009, Mr. Loscalso orally
outside regulatory agencies, including FINRA and the SEC, about his concerns
Thomas Nicolosi and Lon Jury of his intent to make these outside
complaints.
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b. Mr. Loscalso advised Mr. Meixner of this during his meeting with Mr.
42. Mr. Loscalso’s October 23, 2009 email also references the possibility that Mr.
access to his emails and notes that “I would think that electronic
43. When Mr. Loscalso’s request was still not granted, on November 3, 2009, Mr.
Loscalso forwarded his October 23, 2009 email to General Counsel John Junek
and others seeking assistance with his request for his emails.
44. On November 5, 2009, just two days after Mr. Loscalso’s November 3, 2009
email to Ameriprise’s General Counsel, Mr. Loscalso was terminated from his
45. In a letter relating to his termination from Franchise Field Vice President Lon
Jury, Mr. Jury claims that Mr. Loscalso was terminated for cause as a result of
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46. In fact, Mr. Loscalso appropriately and consistently supervised the financial
many respects.
48. Moreover, many of the alleged deficiencies cited in Mr. Jury’s letter are
clearly pretextual, as these standards are not enforced against other Registered
Principals.
49. Contrary to Ameriprise’s proffered reason for Mr. Loscalso’s termination, Mr.
50. As set forth above, Mr. Loscalso repeatedly attempted to fulfill his
52. Defendants Ameriprise and AFS have violated Section 806 of the Corporate
and Criminal Fraud Accountability Act of 2002, Title VIII of the Sarbanes-
53. Defendants Ameriprise and AFS have wrongfully terminated Plaintiff for his
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55. Defendants Ameriprise and AFS breached their contract with Plaintiff by
terminating him without cause before the end of the term of his contract.
56. Defendants Ameriprise and AFS breached their contract with Plaintiff by
terminating him without cause and without providing him with an opportunity
57. Defendants Ameriprise and AFS breached their contract with Plaintiff by
terminating his employment without cause and without providing him with an
58. Mr. Loscalso has suffered mental anguish and emotional distress as a
59. Mr. Loscalso suffered, and continues to suffer severe emotional distress as a
60. Mr. Loscalso has suffered financial losses as a proximate result of the actions
COUNT I
(Section 806 of the Corporate and Criminal Fraud Accountability Act of 2002, Title
VIII of the Sarbanes-Oxley Act of 2002)
Plaintiff v. All Defendants
allegations of all previous paragraphs as fully as though the same were set
62. As set forth in detail above, Plaintiff Michael Loscalso was discriminated
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63. In terminating Plaintiff Michael Loscalso from his employment because of his
2002.
64. As the direct result of the aforesaid unlawful employment practices engaged in
of future earning power, as well as back pay, front pay, and interest due
thereon. Mr. Loscalso has also incurred an obligation for attorneys’ fees and
costs of suit.
COUNT II
(Wrongful Termination)
Plaintiff v. All Defendants
allegations of all previous paragraphs as fully as though the same were set
because they terminated him for attempting to report fraud and other
68. Defendants terminated Mr. Loscalso in violation of public policy because they
illegal activity.
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of Plaintiff.
70. As the direct result of the aforesaid unlawful employment practices engaged in by
power, as well as back pay, front pay, and interest due thereon.
COUNT III
(Breach of Contract)
Plaintiff v. All Defendants
allegations of all previous paragraphs as fully as though the same were set
72. The terms and conditions of Plaintiff’s employment with Defendants were set
74. As the direct and proximate result of Defendants’ breach of contract, Plaintiff
Michael Loscalso has sustained financial damages and interest due thereon.
allegations of all previous paragraphs as fully as though the same were set
WHEREFORE, Plaintiff Michael Loscalso respectfully requests that this Court enter
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retaliation;
unlawful conduct;
h. Such other relief as is deemed just and proper or which is available under
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JURY DEMAND
Plaintiff Michael Loscalso hereby demands trial by jury as to all issues so triable.
___________________________
Jennifer C. Bell, Esquire
PA Attorney I.D. No. 81045
James A. Bell IV, Esquire
PA Attorney I.D. No. 81724
Bell & Bell LLP
1617 JFK Blvd. – Suite 1020
Philadelphia, PA 19103
(215) 569-2500
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