A former Financial Industry Regulatory Authority employee filed a whistle-blower suit in federal court, claiming he was fired after detecting a flaw in a Finra’s risk-rating system that allowed large broker-dealers to be over-leveraged.

Joseph Sciddurlo, 58, claimed in the suit filed today that he worked as a principal examiner for Finra in 2010 when he discovered that the regulator’s system allowed large firms to circumvent a Securities and Exchange Commission rule limiting leverage to 15 times net capital.

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