BlackRock whistle-blower sues over firing, shutdown of China-monitoring tool
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The New York-based company ended March with US$10.5 trillion of assets under management.
PHOTO: REUTERS
NEW YORK – BlackRock is being sued for US$20 million (S$27 million) by a whistle-blowing former vice-president who said it fired him after he objected to a colleague’s self-dealing, and was forced to shut down a search engine for monitoring client discussions about illegal investments, including in China.
In a complaint on May 18, Mr Hamdan Azhar said the big asset manager ordered him in March 2022 to stop work on Trend Spotter, which he had developed, and transfer his projects to Rightpoint, where the husband of former boss Tiffany Perkins-Munn worked.
The Brooklyn resident said he was fired two months later after objecting persistently to a US$2 million contract that BlackRock awarded Rightpoint before Ms Perkins-Munn’s own resignation, calling it “illegal self-dealing”.
He also said his new boss, Mr Riaz Hakkim, refused to escalate concerns about client discussions that Trend Spotter could have tracked, and whether its revelations aligned with BlackRock’s public disclosures to investors and regulators.
Mr Azhar said he began developing Trend Spotter in March 2021 as a “hackathon” project, and that it received “widespread attention and acclaim” within BlackRock.
The New York-based company ended March with US$10.5 trillion of assets under management.
A BlackRock spokesman called Mr Azhar’s accusations “completely meritless” and said Mr Azhar was let go for poor performance and unprofessional conduct. “The claim that BlackRock engaged in illegal investments is absurd,” the spokesman added.
Mr Azhar’s lawyer did not immediately respond to requests for comment.
Last summer, the bipartisan House Select Committee on the Chinese Communist Party began seeking information on whether BlackRock and index provider MSCI facilitated investments in blacklisted Chinese companies.
In April, the committee found that Wall Street, through index fund investments, channelled US$6.5 billion in 2023 into 63 Chinese companies flagged by the US government for supporting China’s military or human rights abuses.
The committee urged Congress to pass laws to restrict such investments. BlackRock and MSCI have denied wrongdoing and said they complied with existing US laws.
Mr Azhar said he joined BlackRock in February 2020 as head of data science for global marketing.
His lawsuit at a New York state court in Manhattan seeks US$10 million each of compensatory damages and punitive damages for violating state labour law.
Ms Perkins-Munn and Mr Hakkim are also defendants, and, according to the complaint, now work respectively at JPMorgan Chase and Fidelity Investments. Neither company immediately responded to requests for comment.
The case is Azhar versus BlackRock Inc et al, New York State Supreme Court, New York County. REUTERS
