A dealer is suing his former employer for withholding a performance-related bonus – after he claims he introduced in 97% of the hedge fund’s revenues that very same yr, in line with court docket filings.
Robert Gagliardi, a block buying and selling specialist with the nickname “Gags,” alleged Evolution Capital Administration acted in unhealthy religion by refusing to pay him a $7.5 million bonus – even after he generated greater than $60 million for the agency between April 2021 and March 2022.
In written arguments for a London court docket hearings, Gags claimed that when he requested the fund’s founder Michael Lerch for the bonus in 2022, he shot again: “I’m not going to pay you the bonus, f–k you, sue me.”
Gagliardi is suing Evolution for breach of contract, claiming that he was instructed in early 2021 {that a} return of $10 million could be an “excellent result.”
In line with Gagliardi, a significant investor in Evolution, Zoltan Varga, at one time mentioned, “Gotta give it to Gags. Guy sure can make money!”
Evolution retorted that it was entitled to make use of discretion in whether or not or to not pay Gagliardi the bonus, and alleged that he breached his phrases of employment.
The corporate additionally accused the dealer of “abrasive attitude to senior management.”
Evolution argued it didn’t award Gagliardi the bonus due to his “generally difficult attitude,” however that “matters deteriorated” when Gags’ trades had been investigated by the US Division of Justice.
Previous to becoming a member of Evolution, the place Gagliardi labored for simply 11 months, the dealer labored at Segantii Capital Administration.
Gagliardi’s trades got here beneath scrutiny as a part of a legal investigation and associated Securities and Trade Fee probe into Morgan Stanley.
The financial institution final yr agreed to pay $249 million to settle claims that it generated greater than $100 million in illicit earnings on account of misconduct by Pawan Passi, the previous head of the financial institution’s US fairness syndicate desk.
In earlier court docket filings, Evolution mentioned it believed Gagliardi referred to Passi as his “daddy” who had “put [him] in the f—ing game” on block trades.
Passi was ordered to pay a $250,000 civil penalty by the SEC.
Gagliardi was cleared of wrongdoing within the DOJ case, which he reiterated in a latest court docket submitting. He denied claims that his relationship with Passi was inappropriate.
Evolution is countersuing for the $7 million it paid Gagliardi throughout his 11-month stint with the hedge fund, arguing that his shut relationship with Passi was a breach of belief.
The hedge fund instructed Gagliardi it was ending his contract in February 2022.
Segantii, Gagliardi’s former employer, was one in every of Asia’s largest funds with practically $5 billion in property beneath administration.
The agency final yr instructed buyers it could give again their cash simply weeks after Hong Kong’s securities fee introduced it could convey legal proceedings in opposition to the agency, its founder and a former dealer for insider buying and selling.
Segantii and the 2 workers concerned within the case have pleaded not responsible.
