Sterne Agee ordered to pay $5.7M award for firing trader

A former head of fixed income trading at Sterne Agee & Leach Inc. has won a $5.7 million award against the firm.
James Fellus, a former senior managing director of capital markets at Sterne Agee, was fired “without cause” and his contract with the firm “should be followed,” a Financial Industry Regulatory Authority Inc. arbitration panel ruled in an award issued Nov. 1.
Mr. Fellus was successful in building a fixed income division at Sterne Agree, said his attorney, Jonathan Sack, of Sack & Sack Attorneys at Law . But once the firm owed him a “serious amount of money [under a] contractual formula,” they fired him to avoid payment, Mr. Sack said.
Mr. Fellus was terminated in May 2008, according to Finra registration records.
“The blind arrogance of Sterne Agee management is mind-boggling, because they had to know they had a huge potential exposure,” Mr. Sack said. Nevertheless, “we never once had a settlement discussion.”
It was not immediately clear if Sterne Agee planned to appeal the award. But Latanisha Watters, of Haskell Slaughter Young & Rediker LLC., who represented Sterne Agee, said “the case is not closed.” She declined further comment.

Related Topics: Financial Industry Regulatory Authority