Subprime Lender Hit With Whistleblower Suit

Law360, New York (May 17, 2007, 12:00 AM EDT) -- The former general counsel at Fieldstone Investment Corp. has accused the floundering subprime mortgage lender of firing her as punishment for alleging that the company’s top executives committed various securities infractions.

The Maryland-based lender first revealed the whistleblower complaint in a recent U.S. Securities & Exchange Commission filing, insisting that the allegations are without merit and that Fieldstone intends to “vigorously defend itself against the lawsuit.”

Cynthia L. Harkness filed the complaint under the Sarbanes-Oxley Act, which seeks to protect from retribution employees who report fraudulent...
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