Ex-broker hits Citi with suit over its bid to claw back signing-bonus loan

Ex-broker hits Citi with suit over its bid to claw back signing-bonus loan
Citigroup Inc. has been smacked with a suit from a former broker who is trying to stop the New York-based banking behemoth from clawing back the remainder of a signing bonus he owes for leaving the firm in 2006.
MAY 05, 2010
Thomas Banus, who filed the suit on Wednesday, began working at Citigroup Global Markets as a securities broker in its Cleveland office in 2004, according to a copy of the complaint, which was provided to InvestmentNews by Mr. Banus' attorney Leon Greenberg of Las Vegas. As part of Mr. Banus' employment contract, he received a signing bonus, which was structured as a forgivable loan to be paid out over a term of seven years, the complaint noted. If Mr. Banus left Citigroup within that period, the unforgiven prorated share of the remaining principle — with interest — would be due immediately, according to the court filing. However, Mr. Banus argued in his suit that because Citi “may terminate the employment and accelerate the note at will, with no loss to itself, with or without prior notice, this is an illusory contract.” Citigroup has demanded repayment of the unforgiven portion of the note with interest in the amount of $39,150.31, the filing said. Mr. Banus now plans to seek class status for the suit on behalf of roughly 500 other Citigroup brokers who have had similar issues with these agreements in recent years. “We believe the suit to be without merit and will defend ourselves against these claims,” Citigroup spokesman Alexander Samuelson wrote in an e-mail. Mr. Banus now works for Walnut Street Securities in Cleveland, Bloomberg reported. He filed the suit in the U.S. District Court for the Southern District of New York in Manhattan.

Latest News

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

Aspen Standard Wealth buys $1B Louisiana RIA Cullen Investment Group
Aspen Standard Wealth buys $1B Louisiana RIA Cullen Investment Group

Cullen marks the fourth firm the New York-based RIA aggregator has bought in 2026 as deal volume heads for a record year.

Strategy before technology: Establishing the foundation for measurable AI value
Strategy before technology: Establishing the foundation for measurable AI value

The quality of AI ROI measurement depends on pre-deployment decisions around business outcomes, leadership alignment, and establishing trusted information, among other factors.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor