Ex-Broker Hits Citi With Lawsuit Over Signing-Bonus Clawback

By Staff Report

Aug. 18, 2009

Citigroup Inc. has been hit with a lawsuit 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.

Thomas Banus, who filed the suit on Wednesday, August 12, 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 Investment News, a sister publication of Workforce Management, by Banus attorney Leon Greenberg of Las Vegas.

As part of 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 states.

If 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, Banus argues 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 says.

According to a Bloomberg report, 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.

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.

Filed Sue Asci by of InvestmentNews, a sister publication of Workforce Management. To comment, e-mail

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

What’s New at

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Staffing Management

Managing employee time-off requests: A guide for business owners

Summary Vacation, sick time, PTO banks, and unpaid leave are only a few forms of employee time off — Mo...

workforce blog


Labor analytics: A how-to guide for company leadership

Make sure to start small, clean your data, use data from a variety of sources and use desired business ...

data analytics, employee data, HR Tech, people analytics, talent management

workforce blog


Why tattleware isn’t the solution for underperforming teams

If your employees can take their smartphones out of their pockets to circumvent your efforts, how can y...

employee monitoring, HR technology, tattleware