A
Miami broker, formerly with Citigroup, won a nearly $4 million award in a
recent FINRA arbitration case regarding wrongful termination. Christian Gherardi “worked at Smith Barney
and other Citigroup units in Miami from the start of his career in 1996 until
he was fired in December 2015.”[1] Gherardi alleged that Citi fired him because
it was afraid he would leave the firm and it wanted to retain his $200 million
book of business.
Moreover, Citi was allegedly worried
that Gherardi would leave because of a moratorium that had been imposed on the
bank which prevented brokers from pursuing new business until the bank got some
things in order with its anti-money-laundering program. “Citi managers alleged that Gherardi had
physically threatened other brokers who were trying to poach his accounts.”1 Mr. Gherardi claimed the incidents were
distorted by Citi in an effort to terminate him and take his book of business. Gherardi was unable to take the majority of
his substantial book of business with him to his new firm.
The award included “$3.45 million in
compensatory damages for wrongful termination, $150,000 for ‘lost quarter’
trail fees and almost $396,000 for deferred compensation.”1 Ironically, Cosgrove Law Group, LLC has
obtained awards and settlements of about the same amount for other defamed
registered representatives.
The arbitration award can be viewed
here.
-Maria T. Eggert
