Reuters: Regulatory News: Ex-Lehman broker must pay $904,000 in bonus flap

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Ex-Lehman broker must pay $904,000 in bonus flap Jul 3rd 2012, 17:33 By Suzanne Barlyn July 3 | Tue Jul 3, 2012 1:33pm EDT July 3 (Reuters) - A San Francisco-based broker must pay more than $904,000 to Lehman Brothers Holdings Inc, which has been aggressively clawing back bonus money that it paid to brokers before its demise in 2008. The case, decided last week by a Financial Industry Regulatory Authority arbitration panel, is among a series of recent decisions that have ended with mixed results for Lehman. Gregory Alan Weiss was ordered to pay Lehman Brothers Holdings Inc $904,000 in a case stemming from a bonus he received upon joining the firm in August 2006, according to the June 25 ruling. Weiss stayed with Lehman until its collapse two years later, according to filings. Neither Weiss nor his lawyer were available for comment. Weiss now works for Wells Fargo Advisors LLC, according to the filings. Lehman has been pursuing more than 80 former brokers, some of whom were hired less than a year before the investment bank's 2008 bankruptcy filing, to return portions of bonuses they received when hired. The payments are typically structured as "forgivable loans" that are paid-up front and forgiven incrementally over time, typically seven to 10 years. To date, FINRA arbitration panels have decided 17 Lehman bonus cases, according to a Lehman spokeswoman. Of those, panels awarded Lehman the full amounts owed by brokers, plus other damages such as interest and legal fees, she said. The firm has also settled more than 45 cases for nearly the full amounts owed, she said. About 25 cases remain, the spokeswoman said. Despite Lehman's overall success with its strategy, some recent cases stand out in which brokers did not have to pay anything to the firm. A FINRA panel ruled against Lehman on June 8, allowing its former national sales manager, Jack Petersen, to keep the $375,074 balance he owed on his note. The note Petersen signed, four years after joining the firm in 2003, reflected different terms than those promised to him, said his lawyer, David Robbins, in New York. Petersen is now a managing director at Barclays Capital Inc, according to filings and his LinkedIn profile. A panel also recently allowed a Boston-area broker to keep nearly $193,000, according to a ruling. His lawyer did not immediately return a call requesting comment. Lehman declined to comment on either case. Link this Share this Digg this Email Reprints

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