Now, About That Bonus

NJBIZ, Sep 27, 2004

Jersey City's Knight Trading Group said last week that an NASD arbitration panel has dismissed claims filed by a former employee against Knight Securities, a Knight subsidiary now known as Knight Equity Markets. In a lawsuit filed December 27, 2001, Robert Stellato had alleged improper termination. He also asserted a whistleblower claim for damages based on his allegation that during a specified period Knight Securities permitted front running on institutional orders. That's when, for example, brokers buy themselves shares of a stock just before executing a large purchase for a client. The company denied all of Stellato's claims, and arbitration hearings began in April 2003.

Stellato had sought in excess of $25 million in damages relating to his job. Instead, a NASD arbitration panel dismissed all his claims while awarding him $19,101 for a year-2000 bonus.