Ex-exec files $5M arbitration claim against Ladenburg Thalmann and Investacorp

A former employee of Ladenburg Thalmann Financial Services Inc. of Miami has filed $5 million arbitration claim against the firm and its subsidiary, Investacorp Inc., for alleged breach of contract.

Scott Sherwood served as executive vice president at Investacorp. Inc. of Miami Lakes, Fla., before it was sold to Ladenburg Thalmann in October of 2007.

He is seeking $5 million for breach of contract as well as for compensation for his leadership in securing the acquisition of Triad Advisors Inc. of Atlanta in August on behalf of a subsidiary of the firm. Also, he would like to be compensated for his role in recruiting of registered representatives for Investacorp, according to a statement issued by the law firm Pivnik & Nitsche PA of Miami, which is representing him.

Mr. Sherwood remained with the firm until his employment was terminated in January, said attorney Jerome Pivnik.

Mr. Sherwood filed a demand for arbitration Monday with the Financial Industry Regulatory Authority, based in Washington and New York.

A spokesman for Ladenburg was not immediately available for comment.