{"id":750,"date":"2010-09-15T20:41:24","date_gmt":"2010-09-15T20:41:24","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/09\/whistleblower_sues_moodys_inve"},"modified":"2022-03-09T16:01:10","modified_gmt":"2022-03-09T22:01:10","slug":"whistleblower-sues-moodys-inve","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/whistleblower-sues-moodys-inve\/","title":{"rendered":"Whistleblower Sues Moody\u2019s Investors Service for Defamation"},"content":{"rendered":"<p>\t\t\t\tIlya Eric Kolchinsky, a former Moody&#8217;s Investors Service executive, is suing the credit ratings agency for defamation. This is one of the first lawsuits involving a Wall Street company and an ex-employer that blew the whistle on it.  Kolchinsky is seeking $15 million in damages in addition to legal fees. <\/p>\n<p>Kolchinsky claims that Moody&#8217;s tried to ruin his reputation after he publicly talked about problems with its ratings model. Kolchinsky, who supervised the ratings that were given to subprime mortgage collateralized debt obligations (many of these did not live up to their triple-A ratings), testified before Congressional panels about his concerns. He addressed the potential conflicts that can arise as a result of the issuer-pay ratings model, which lets banks and borrowers that sell debt securities pay for ratings. He alleged<a href=\"https:\/\/www.investorlawyers.com\/\"> securities fraud<\/a> and claimed that the ratings agency placed profits ahead of doing their job.  He also claimed that Moody&#8217;s lacked the resources to enforce its rules. <\/p>\n<p>Kolchinsky contends that Moody&#8217;s began attacking him through the media and that the statements that the credit ratings firm issued have caused him to become  &#8220;blacklisted by the private sector financial industry.&#8221;  Moody&#8217;s suspended him last year. In his civil suit, Kolchinsky notes that he was attacked by the credit ratings agency even though it went on to adopt some of his recommendations. <\/p>\n<p>The recently passed financial reform bill provides greater protections for whistleblowers while offering financial rewards for those brave enough to tell regulators about their concerns. However, it is unclear whether Kolchinsky&#8217;s complaint will benefit from the new law because his case involves alleged actions that occurred prior to the bill&#8217;s passing.<\/p>\n<p><strong>Related Web Resources:<\/strong><br \/>\nFormer Moody&#8217;s Executive Files Suit, New York Times, September 13, 2010<br \/>\nExec who blew whistle on Moody&#8217;s ratings sues for defamation, Central Valley Business TImes, September 14, 2010<br \/>\n<a href=\"https:\/\/www.investorlawyers.com\/blog\/2010\/07\/wall_street_whistleblowers_may_1\">Wall Street Whistleblowers May Be Eligible to Collect 10 \u2013 30% of Money that the Government Recovers<\/a>, Stockbroker Fraud Blog, July 29, 2010  <a href=\"https:\/\/www.investorlawyers.com\/blog\/whistleblower-sues-moodys-inve\/#more-750\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ilya Eric Kolchinsky, a former Moody&#8217;s Investors Service executive, is suing the credit ratings agency for defamation. This is one of the first lawsuits involving a Wall Street company and an ex-employer that blew the whistle on it. Kolchinsky is seeking $15 million in damages in addition to legal fees. Kolchinsky claims that Moody&#8217;s tried [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3742,3862,3845,3882,3864,3938],"tags":[],"class_list":["post-750","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-collateralized-mortgage-obligations","category-credit-rating-agencies","category-moodys","category-subprime-mortgage","category-whistleblowers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Whistleblower Sues Moody\u2019s Investors Service for Defamation &#8212; Investor Lawyers Blog &#8212; September 15, 2010<\/title>\n<meta name=\"description\" content=\"Ilya Eric Kolchinsky, a former Moody&#039;s Investors Service executive, is suing the credit ratings agency for defamation. 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This is one of the first lawsuits &#8212; September 15, 2010\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Whistleblower Sues Moody\u2019s Investors Service for Defamation &#8212; Investor Lawyers Blog &#8212; September 15, 2010","description":"Ilya Eric Kolchinsky, a former Moody's Investors Service executive, is suing the credit ratings agency for defamation. 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