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Ex-Barclays Wealth Head Wins Million-Dollar Payout Over Stifel Deal

May 25, 2018

A Finra panel has ruled in favor of a former head of Barclays Capital’s wealth management unit, ordering the firm to pay $2.7 million allegedly owed him for helping push through the unit’s sale to Stifel Financial, according to InvestmentNews.

Thomas Lee filed a claim against Barclays in 2016, claiming breach of contract, breach of implied contract and more, originally seeking $3.7 million in damages and lawyers’ fees, according to the Finra award document.

In December 2015, when Barclays sold its wealth unit to Stifel, Lee headed Barclays Wealth and Investment Management, Americas, according to his LinkedIn profile. Barclays had bought the business as part of an acquisition of several Lehman Brothers units in 2008 in the midst of the financial crisis, according to InvestmentNews.

By mid-2015 the wealth unit’s advisor count stood at 180 people and they oversaw $56 billion. Lee “was a key man” who ran the entire unit and ensured its advisors were on board to transition to Stifel, Jonathan Sack, Lee’s lawyer, tells the publication.

“As a senior leader he spent many months selling and coaxing [advisers] to move to Stifel, a regional firm,” he tells InvestmentNews.

Barclays failed to fairly compensate Lee for his help, according to Sack, the publication writes. A spokesman for Barclays tells InvestmentNews the company is disappointed by the panel’s decision, believing the award to be “unfounded.”

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.