Theodore Sihpol III has been charged by the New York state Attorney General's office with grand larceny and securities fraud. His alleged offenses were carried out during the time he was employed as a broker at Bank of America and his activities are said to be central to the mutual fund investigations currently being undertaken by US state and federal regulators. Sihpol has already incurred large legal costs and is now looking for Bank of America to pick up the tab.
Sihpol's lawyer, C.Evan Stewart, has said: 'Mr Sihpol is facing criminal and civil proceedings arising out of activities he allegedly undertook for the Bank of America, of which he was an officer and employee'. Lawyers have now filed a complaint against the bank in Delawere Chancery Court, claiming that it is required to cover Sihpol's legal fees based on local supporting by-laws.
According to the complaint, Bank of America, which itself has been charged with no wrongdoing, has declined to cough up Sihpol's legal fees, after apparently taking advisement on the matter. Bank of America is in a difficult position here, as it in no way wishes to be accused of trying to protect a former employee to potentially stop him speaking out against the bank by paying his legal expenses. A court-ruling requiring the bank to pay up would certainly get it out of a tight spot.