Trader sues hedge fund for refusing to pay bonus – – Business News
A trader is suing his former employer for withholding a performance-related bonus – after he claims he introduced in 97% of the hedge fund’s revenues that very same yr, in accordance to courtroom filings.
Robert Gagliardi, a block trading specialist with the nickname “Gags,” alleged Evolution Capital Management acted in dangerous religion by refusing to pay him a $7.5 million bonus – even after he generated more than $60 million for the firm between April 2021 and March 2022.
In written arguments for a London courtroom hearings, Gags claimed that when he requested the fund’s founder Michael Lerch for the bonus in 2022, he shot back: “I’m not going to pay you the bonus, f–k you, sue me.”
The Royal Court of Justice in London. AP
Gagliardi is suing Evolution for breach of contract, claiming that he was advised in early 2021 that a return of $10 million could be an “excellent result.”
According to Gagliardi, a main investor in Evolution, Zoltan Varga, at one time mentioned, “Gotta give it to Gags. Guy sure can make money!”
Evolution retorted that it was entitled to use discretion in whether or not or not to pay Gagliardi the bonus, and alleged that he breached his phrases of employment.
The company additionally accused the trader of “abrasive attitude to senior management.”
Evolution argued it didn’t award Gagliardi the bonus as a result of of his “generally difficult attitude,” however that “matters deteriorated” when Gags’ trades had been investigated by the US Department of Justice.
Prior to becoming a member of Evolution, the place Gagliardi labored for simply 11 months, the trader labored at Segantii Capital Management.
Simon Sadler, founder of Segantii Capital Management. Bloomberg by way of Getty Images
Gagliardi’s trades got here underneath scrutiny as half of a legal investigation and associated Securities and Exchange Commission probe into Morgan Stanley.
The bank final yr agreed to pay $249 million to settle claims that it generated more than $100 million in illicit earnings as a end result of misconduct by Pawan Passi, the previous head of the bank’s US equity syndicate desk.
In earlier courtroom filings, Evolution mentioned it believed Gagliardi referred to Passi as his “daddy” who had “put [him] in the f—ing game” on block trades.
The London Stock Exchange. Getty Images
Passi was ordered to pay a $250,000 civil penalty by the SEC.
Gagliardi was cleared of wrongdoing within the DOJ case, which he reiterated in a current courtroom submitting. He denied claims that his relationship with Passi was inappropriate.
Evolution is countersuing for the $7 million it paid Gagliardi during his 11-month stint with the hedge fund, arguing that his close relationship with Passi was a breach of trust.
The hedge fund advised Gagliardi it was ending his contract in February 2022.
Segantii, Gagliardi’s former employer, was one of Asia’s largest funds with practically $5 billion in belongings underneath management.
The firm final yr advised buyers it will give back their money simply weeks after Hong Kong’s securities commission introduced it will carry legal proceedings in opposition to the firm, its founder and a former trader for insider trading.
Segantii and the 2 staff concerned within the case have pleaded not guilty.
