Lenn Ferrer worked in USAA Federal Savings Bank's compliance department from 2014 until he was fired in March 2020.
A former USAA Federal Savings Bank employee who accused the bank of committing financial crimes is now suing its parent company for defamation over comments it made to the San Antonio Express-News in response to his allegations.
In a lawsuit filed May 22, Lenn A. Ferrer says USAA “acted with malice” in comments to the newspaper by “portraying him as a dangerous, disgruntled, lying former employee” in an effort to fend off his allegations that the bank had violated numerous banking laws meant to protect military members against certain lending practices. Ferrer, a former federal prosecutor and Navy lawyer who worked in USAA Bank’s compliance department from 2014 until he was fired in March 2020, seeks unspecified damages of more than $50,000. He filed the complaint in St. Johns County Circuit Court in Florida, where he lives. RELATED: USAA returns to a profit in 2023, a year after it reported first annual loss in nearly 100 years Ferrer, a licensed attorney who is representing himself in the litigation, filed the suit on the the second anniversary of the article’s publication in the Express-News’ print edition. It first appeared online May 20, 2022. The San Antonio insurance and financial services company has yet to file an answer to the lawsuit, but issued a statement. “USAA will vigorously defend itself, and we are confident we will prevail in this case,” it said. In the Express-News story, Ferrer alleged the bank had committed some 400,000 violations of the Military Lending Act, which protects service members from lending practices that could pose a threat to military readiness and hurt service member retention. His allegations were first reported by Compliance Week, a publication for regulatory compliance officers. In a 2022 interview with the Express-News, Ferrer said he based that figure on internal USAA documents prepared by a third-party contractor and reported to the Office of the Comptroller of the Currency. He now alleges that Kate Gallivan, USAA’s head of regulatory relations and a senior vice president, made false statements when she disputed his claim to the Express-News. Gallivan’s assertions that the 400,000 violations were “grossly overstated” and that the actual figure was a “fraction” of that were made to “intentionally undermine Ferrer’s credibility,” the lawsuit says. EXEC EXIT: USAA Federal Savings Bank President Paul Vincent departing; search for his successor planned Ferrer also took issue with USAA’s statement to the newspaper that he “was placed on administrative leave” in February 2020 “for inappropriate and threatening comments and made to co-workers, including reference to firearms.” “This is a blatant misrepresentation and is nowhere referenced in Ferrer’s ‘separation’ email,” his complaint says. He adds that he was a full-time work-from-home employee who never made any threatening comments to co-workers. The Express-News quoted Ferrer saying USAA “manufactured cause to fire me” because he is a whistleblower. In his lawsuit, Ferrer says he has been subjected to “fear, distrust, ridicule, contempt, and disgrace” as a result of USAA’s statements, which he adds have injured him in his profession and business.
San Antonio Express-News Express-News Federal Savings Bank Circuit Court Office Of The Comptroller Of The Currency Navy Lenn A. Ferrer Paul Vincent Kate Gallivan San Antonio St. Johns County Florida Military Lending Act Compliance Week
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USAA defrauded customers on vehicles' value, Calif. prosecutor allegesThe Alameda County district attorney says says drivers insured by USAA and Progressive 'face what looks like a rigged game when their car or truck is totaled.'
Read more »
California DA Sues Progressive, USAA Insurers For ‘Lowballing’ And Screwing DriversThe DA argues that by undervaluing vehicles, insurers could minimize their own payouts, and then auction of the lightly damaged vehicles for more
Read more »
USAA Bank President Paul Vincent leaving after about 3 yearsUSAA said it will conduct an executive search to find Vincent's successor. “I’m grateful for Paul’s leadership,' CEO and President Wayne Peacock said.
Read more »
Poppy Wall of Honor returns; USAA reminds Americans about true meaning of Memorial DayUSAA has brought its Poppy Wall of Honor back to the National Mall in Washington, D.C.
Read more »
USAA members recount losses and broken trust amid rising bank fraud concernsSAN ANTONIO - There's comfort in keeping your money in a bank or financial institution. The thought is your money's safer there.Now a growing number of USAA mem
Read more »
'How do you not see fraud' More USAA members share their experiences with bank fraudThere's comfort in keeping your money in a bank or financial institution. The thought is, your money's safer there.Now a growing number of USAA members are havi
Read more »