A whistleblower is alleging that multi-billion dollar securities violations have occurred at Deutsche Bank, the Germany-based global investment bank.

The alleged misconduct was first publicly disclosed in an article published by the Financial Times today. Dr. Eric Ben-Artzi is believed to be the first SEC whistleblower to share his story publicly.

Ben-Artzi, a former Quantitative Risk Analyst at Deutsche Bank responded, “I never wanted or expected to be a whistleblower. I reported internally first and extensively, in accordance with bank policies and procedures.”

He adds “As the problem was not acknowledged or corrected, I felt compelled to inform the proper law enforcement authorities. Unfortunately, my family and I are paying a heavy price for doing the right thing.”

Read: When to blow the whistle and SEC whistleblower awarded $50,000

Ben-Artzi discovered and internally reported possible securities violations stemming from Deutsche Bank’s failure to accurately report the value of its credit derivatives portfolio.

Specifically, between mid-2007 and 2010, the bank failed to properly value the gap option component in its portfolio of Leveraged Super Senior tranches of credit derivatives—the gap option is the difference between the collateral paid and the mark-to-market expected loss the LSS note seller agreed to cover.

With a $120-$130 billion portfolio in notional value, Deutsche Bank was the largest holder of LSS trades in the marketplace.

And by not accurately valuing it, the bank was able to maintain its carefully crafted public image that it was weathering the financial crisis better than its peers.

If the LSS portfolio had been properly valued, on the other hand, the bank would have substantially missed its earnings estimates. Due to these material misrepresentations, countless investors may have been harmed.

Deeply troubled by the bank’s unwillingness to address this valuation problem, Ben-Artzi sought legal representation and reported the possible securities violations to the U.S. Securities and Exchange Commission through the new whistleblower program.

Read: Blowing the whistle

The program, established by the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010, has broad international reach and offers whistleblowers employment protections and monetary awards.

“When Ben-Artzi first consulted with me, I was shocked by the size and scope of the alleged misconduct” says Jordan Thomas, a former SEC assistant director and chair of the whistleblower representation practice at Labaton Sucharow.

As alleged in his retaliation complaint filed with the Department of Labor, Ben-Artzi attempted to work through internal reporting channels to correct the valuation problem.

The SEC says he was subjected to: severe hostility; was isolated and denied access to records necessary to perform his job; lost his job independence; and was stripped of responsibilities.

In November 2011, it says Deutsche Bank informed him his position had been moved to Europe and laid him off without warning.

Accordingly, GAP agreed to represent Ben-Artzi in his retaliation case, alleging violations of the whistleblower protection provisions contained within the Sarbanes-Oxley Act.

Tom Devine, GAP legal director and author of Corporate Whistleblower’s Survival Guide, says: “Dr. Ben-Artzi was a model corporate citizen who discovered SEC violations that could incur serious liability, and stuck his neck out internally to warn bank management.”

He adds, “The retaliation was crude, and not camouflaged. Quite clearly, the point was to scare other would-be whistleblowers into silence.”