- Former employees sue Vivek Ramaswamy’s firm for pressuring them to violate securities laws.
- Allegations include promises of future returns and unregistered employee sales pitches.
- Lawsuits shed light on misconduct and potential securities violations at the company.
In recent developments reported by Bloomberg, Republican presidential candidate and entrepreneur Vivek Ramaswamy is facing legal challenges. His two former employees of Strive Asset Management, a company he co-founded, have filed lawsuits against him and the firm. The lawsuits claim that the employees were pressured into violating securities laws while working at the company.
One of the lawsuits, filed by Joyce Rosely on August 8 in New Jersey. Allege that she was terminated from her position as co-head of institutional sales. After raising concerns about an executive’s aggressive sexual advances towards a junior staff member. Rosely also contends that she was pressured by Ramaswamy and co-founder Anson Frericks to use sales materials promising future returns to customers.Also to allow unregistered employees to make sales pitches, both of which constitute securities violations. She further raises issues about Ramaswamy’s social media posts, which she believes constituted illegal securities sales.
Another lawsuit, filed in June by John Phillips. Claims that he was enticed to join Strive Asset Management from his previous role at JPMorgan based on false assurances about the firm’s financial status and Ramaswamy’s commitment to the company. Phillips alleges that Ramaswamy misrepresented the company’s finances to employees and investors. Also that the company pressured him into violating securities laws.
Both Rosely and Phillips were terminated in March, with Phillips asserting that his firing was unjustified and Rosely claiming age discrimination in addition to retaliation for reporting misconduct. Rosely had been informed that her termination was part of a company-wide reorganization aimed at removing employees over the age of 40.
A spokesperson for Strive Asset Management has stated that the company intends to defend itself vigorously in response to the lawsuits. However, the spokesperson declined to comment further on the ongoing litigation.
Rosely’s complaint also reveals that she reported instances of sexual harassment to co-founder Anson Frericks, who reportedly dismissed the matter as “none of his business.” Christopher Lenzo, Rosely’s attorney, has argued that Strive Asset Management was founded primarily as a public relations platform for Ramaswamy’s presidential campaign rather than being focused on effective investment management.
As these legal challenges unfold, they shed light on allegations of misconduct and securities law violations at Strive Asset Management. Raising questions about the company’s operations and leadership decisions.