Chung Wu, the former UBS PaineWebber broker who was fired after sending e-mails in August 2001 suggesting clients sell Enron stock, has sued PaineWebber. Chung, now working at A.G. Edwards, asserts in his claim that PaineWebber wrongfully fired him. He is seeking nearly $2.7 million in damages.
The Houston broker, as Registered Rep. reported in May, sent e-mails to clients suggesting they sell Enron stock. After being alerted to the e-mails by an Enron executive, Chung's branch manager fired him, and then took steps to appease Enron execs by reversing Chung's suggestions to his clients.
Chung's clients “were beginning to be contacted by PaineWebber representatives who informed [them] that Chung was completely wrong and [that] he did not give them good advice about diversifying,” according to the claim, filed by attorney Joseph Hroch of Spencer & Associates.
Hroch is currently handling a class action suit by Chung's clients against PaineWebber, which would not comment on the suits.