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Wednesday 16 January, 2008


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Today's featured truth teller - David Chacon

Blowing the whistle on criminal activity in US investment bank.

David Chacon was a stockbroker at Salomon Smith Barney, a US investment bank, from 1996-2000. According to Salomon, Chacon was fired for allegedly stealing commissions from other brokers, but he denies the allegations and says he was forced out after blowing the whistle on allegedly criminal IPO allocations at Salomon's exclusive boutique brokerage in Los Angeles. Chacon alleges that Salomon tried to win over banking business from the heads of many telecom firms by giving them large IPO allocations for their personal accounts, and that this strategy was guided by the Salomon's top telecom analyst, Jack Grubman. He alleges that in one particular IPO allocation, the CEO of WorldCom received a kickback worth $16 million.

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