Aug. 24 (Bloomberg) -- Bear Stearns Cos., in a case linked to the USA Patriot Act, was told to pay a former managing director about $819,000 after soliciting his clients in violation of a severance agreement, according to the law firm that represented him.
Gregory Fisher claimed in an arbitration hearing this month that while he was still employed at Bear Stearns in March 2005, the firm said it wasn't interested in serving his clients ``because of increased regulatory burdens imposed by the USA Patriot Act,'' his lawyers said in a statement today. The clients were banks and brokerages in the Caribbean and Central America.
Bear Stearns, the biggest broker to hedge funds, reassigned Fisher's customers after he left and began soliciting them, lawyers at Page Perry LLC said in the statement. The three- person Financial Industry Regulatory Authority arbitration panel awarded Fisher $1.6 million, less $780,680 in excess Bear Stearns stock he received in error.
``Bear Stearns executives decided they couldn't afford to lose all of the revenue that was associated with Mr. Fisher's clients'' after someone in his division sought his ouster, said J. Steven Parker, an attorney for Fisher at Page Perry LLC in Atlanta. Fisher later joined Oppenheimer & Co.