Lawyer receives civil courage award

Lawyer receives civil courage award

Terrace-raised Alayne Fleischmann honoured for speaking out against bank scandal

A lawyer who grew up in Terrace recently earned a civil courage award for blowing the whistle on a massive bank fraud that was part of the U.S. 2008 financial crisis.

Alayne Fleischmann was nicknamed “the $9-billion witness” for testifying against the JPMorgan Chase financial institution.

She was presented the Wallenberg-Sugihara Civil Courage Award on Jan. 14, an award given to B.C. connected citizens who have faced significant personal risk to advance human rights.

Fleischmann grew up in Terrace and attended Cornell Law School before working for two years at JPMorgan in 2006-2008.

According to news reports, while working there as a transaction manager, she discovered the company was re-selling sub-prime mortgages without notifying investors about the risk.

Fleischmann spoke out against the practice, but was silenced and later fired.

Though she’d signed a non-disclosure agreement, she secretly testified to federal prosecutors about the fraud, but after years of seeing no criminal charges and out-of court settlements, she’d had enough.

That’s when she spoke out publicly against the bank, exposing the fraud that had happened eight years earlier.

“It was like watching an old lady get mugged on the street,” she told Rolling Stone magazine in her first public interview. “I thought, ‘I can’t sit by any longer.’”

Although she faced significant personal risk for violating her non-disclosure agreement, Fleischmann still decided to speak up.

“I could be sued into bankruptcy,” she told the New York Daily Times shortly after. “I could lose my license to practice law. I could lose everything. But if we don’t start speaking up, then this really is all we’re going to get: the biggest financial cover-up in history.”

Now, as a potential witness in ongoing litigation, Fleischmann was unable to speak on the record with the Standard, but she has moved back to Terrace and has lived here for the past year.

In an article by the Corporate Crime Reporter, Fleischmann said her upbringing here played a huge role giving her the devotion to what is right.

“I think it was because I came from a small town — Terrace, B.C.” the article reads. “I was raised with this idea that ultimately you have to do the right thing. It was just simple things like, you can’t take money from people. We are talking about pension plans and retirement funds, things people are relying on at a time when they don’t have another income. I just grew up with a value that a lot of people have, and that is, it’s okay to do well, but you can’t do that at other people’s expense.”

It was those beliefs, combined with the personal risk she faced that earned her the Wallenberg-Sugihara Courage Award earlier this year.

“Sometimes whistle blowers do what they do for less than altruistic motives,” said director Alan Le Fevre, “and they may not follow through. Some who attempt it are simply paid off to keep quiet.”

However, for Alayne it was different, because it was eight years after leaving the company that she chose to speak up, and there was no personal gain.

“Many years after Alayne attempted to stop the fraud, it is clear she is committed to the bank’s clients,” he said.

And the risk of being a whistle blower could include employer retaliation, industry blacklisting, professional violations, and legal consequences.

“There is always significant personal and professional risk in being a whistle blower against a large and powerful company or organization,” said Le Fevre.

And Fleischmann’s courage to face that risk was the other part that earned her the honour.

Just Posted

Do Your Part Recycling Co is celebrating 15 years of its operation in Terrace this May. (Binny Paul/Terrace Standard)
How a homegrown Terrace business became a vital cog in the regional recycling initiative

Do Your Part Recycling owner Kasey Lewis on how they started 15 years ago

Construction continues on Coast Mountain College’s student residence on May 12, 2021. (Ben Bogstie/Terrace Standard)
VIDEO: Work continues on major projects at Coast Mountain College

Price tag of $35 million set for housing, substantial renovations

Terrace city council gave first and second reading to zoning amendment bylaws for the proposed transload facility located next to Keith Ave. (Image courtesy Hatha Callis, Progressive Ventures Group)
Next inland port public hearings set for June

Terrace council gave first and second reading to establish new zone, rezoning application

Skeena Valley Farmers Market will host Northern Health’s COVID-19 vaccination booth on May 15. ( Skeena Valley Farmers Market/Facebook)
Northern Health to set up COVID-19 vaccine booth at Skeena Valley Farmers Market

The booth will be set up on the south side of the market towards Park Ave. on May 15

Both Lanfear Hill, pictured here, and Kalum (Skeenaview) will be closed at different times this evening going into Friday morning. (File photo)
Two hills to be temporarily closed tonight

Pipe inspections first on Lanfear and then on Kalum

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

People shop in Chinatown in Vancouver on Friday, February 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver community leaders call for action following 717% rise in anti-Asian hate crimes

‘The alarming rise of anti-Asian hate in Canada and south of the border shows Asians have not been fully accepted in North America,’ says Carol Lee

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Dr. Steve Beerman, of Nanaimo, shows off his Dr. David Bishop Gold Medal, awarded for distinguished medical service. (Karl Yu/News Bulletin)
Queen presents Vancouver Island doctor with award for global drowning prevention

Dr. Steve Beerman receives Royal Life Saving Society’s King Edward VII Cup at virtual ceremony

Former UFV Cascades wrestling coach Arjan Singh Bhullar is now the ONE heavyweight champion after defeating Brandon Vera via TKO in round two on Saturday in Singapore. (ONE Championship)
Former UFV wrestling coach wins MMA championship

Arjan Singh Bhullar captures ONE heavyweight title, first Indian origin fighter to achieve honour

Most Read