Finra arbitrators ruled in favor of two former
UBS Financial Services Inc. brokers who claimed a member of their team created a hostile work environment, but the $171,445 damages award has their lawyer wondering whether there was a mistake in the ruling document.
Debrah Oelke and Pamela Grether allege that Louis J. Lukic discriminated against them based on their gender while they were in a team arrangement with him at a UBS branch in Brookfield, Wisc., from 2011 until about 2016.
Mr. Lukic treated the women like "second class citizens," screamed at them and berated an executive coach who was brought in to mediate the situation, said Paul Lieberman, a partner at Scarinci & Hollenbeck, who represents Ms. Oelke and Ms. Grether.
The compensation structure of the team, as well as the financial terms of the partnership dissolution agreement, also heavily favored Mr. Lukic, according to Mr. Lieberman. In addition, UBS management did nothing to restrain him.
"The firm did not report [Mr. Lukic's] bullying and abusive language to [human resources], as its policies required at that time," Mr. Lieberman said.
Three Financial Industry Regulatory Authority Inc. arbitrators unanimously held Mr. Lukic, UBS branch manager Michael J. Kelly and UBS,
jointly and severally liable in a Nov. 29 award. They gave Ms. Oelke $102,867 and Ms. Grether $68,578 in compensatory damages.
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That outcome left Mr. Lieberman scratching his head.
Ms. Oelke was seeking $4 million in damages, and Ms. Grether sought $2.3 million. Mr. Lieberman said his clients proved their discrimination case, and under federal workplace law, they're supposed to be made whole for their losses. Instead, Finra arbitrators gave them a fraction of their damage requests.
"We think there might be a typo in there," Mr. Lieberman said. "We can't figure out how [the award] was calculated."
Although the Finra arbitrators found the UBS personnel liable, they denied Ms. Oelke's and Ms. Grether's claims asserted under Title VII of the Civil Rights Act of 1964 and the Wisconsin Fair Employment Act.
"We are pleased that Finra found that no discrimination took place, and although disappointed that the panel felt the need to award anything, this award amounts to an overwhelming rejection of their claims," UBS spokeswoman Erica Chase said in a statement.
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Mr. Lieberman has requested the Finra arbitrators review and explain their decision. Arbitration awards typically don't include the reasoning behind the ruling. A Finra spokeswoman said the regulator does not confirm the existence or status of arbitration case reviews.
Mr. Lukic, Mr. Kelly and their lawyers did not respond to a request for comment.
Ms. Oelke and Ms. Grether left UBS in 2017 and went to Ameriprise Financial Services Inc., where Ms. Oelke still works, according to her BrokerCheck record. Ms. Grether is no longer registered as a broker.
