A former UBS broker instituted arbitration proceedings against UBS for failing to pay deferred compensation and bonus compensation, defamation, tortious interference with prospective economic advantage, wrongful termination, and violation of Connecticut Unfair Trade Practices Act.
The hearings took 17 days, over 10 months (who says arbitration is fast?) and UBS was ordered to pay the broker $1,369,949.00 for the deferred compensation claim and $69,231.00 for the unpaid compensation claim, plus interest at the rate of 9% per annum from July 9, 2013 until the award is paid in full - that is almost $400,000 in interest, assuming UBS does not move to vacate the award any pays right away.
But wait! There's more! UBS was also ordered to pay Claimant attorneys' fees in the amount of
$868,264.00, and UBS was ordered to amend the broker's U5 to remove the defamatory statements that UBS placed on the U5.
All in all a good day for the broker, and perhaps a lesson to firms not to screw around with deferred compensation. After all, it is the broker's money, that he earned, and the firm has no moral right to manipulate a termination and to keep those funds.
Sallah Astarita & Cox is a multi-state law firm with offices in New York, Florida and New Jersey. Because of the unique nature of the practice of securities law, the firm represents clients across the country, in virtually every state in the United States. Contact the firm at 212-509-6544.