Financial Industry Regulatory Authority arbitrators have awarded Mayank Chamadia $3.7 million in compensation in his case against Barclays Plc. (BARC) Chamadia was placed on leave from the June 2013 to prepare testimony for a possible interest-rate manipulation case. He resigned in October 2013 to go work for another firm.
Although Chamadia wasn’t accused of any violations, he said that the leave time while at Barclays hurt not just his reputation but also is bonus earning power. Now, Barclays must pay Chamadia millions of dollars in deferred pay along with the compensation. The arbitrators found that the firm had “no basis” to reduce or keep payouts that had not yet vested. Chamadia’s lawyer says that this releases some $9 million in back pay that had vested, including interest, to his client.
In another financial representative case against a firm, Robert Fenyk, an ex-Raymond James Financial Services Inc. (RJF) adviser, recently saw his $650,000 award reinstated by the U.S. Court of Appeals for the First Circuit. The ruling comes after a five-year legal battle.
Fenyk was part of the independent adviser network of Raymond James before he was fired in 2009. He took the firm to arbitration two years later alleging employment discrimination and retaliation after a supervisor found out about his sexual orientation and that he was a recovering alcoholic.
An arbitration panel awarded him $650K in back pay and legal costs in 2013. The firm, claiming that the arbitration panel misapplied Florida law and that Fenyk’s claims exceeded the one-year statute of limitations for civil rights cases, appealed in district court. The court vacated the award.
Fenyk appealed and the appellate panel affirmed the original arbitration award. Depending on whether Raymond James appeals this latest ruling, the case could end up before the U.S. Supreme Court.
Former Barclays Swaps Trader Wins Millions in Back Pay, The Wall Street Journal, April 3, 2015
Barclays Ordered to Pay Ex-Trader About $9 Million, Lawyer Says, Bloomberg, April 6, 2015
Ex-Raymond James broker wins back $650,000 award, Investment News, March 13, 2015
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