Just left, still has a note
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Just curious if anyone knows anything about these situations:
1. We just had a guy that resigned from our office and left the business all together. Apparently he still owes 300k. What happens if the guy literally does not have the 300k to pay back when the firm comes after him?
2. I only ask because I know a guy who left my firm for SB three years ago and owed 110k. ML is still going after him to this day. All he does is keep responding with “I dont have the money”. They let up but than revisit it months later. He has paid for an attorney to represent him.
seeing a lot of this lately with such long notes and people leaving the business.
If someone goes to another firm and takes a check they have slim to no chance of skipping out of old promissory notes. Most firms only forgive note annually but firm will prorate if employee pays back promptly. Have heard a few recent cases where guys have tried to fight and went to arbitration. Panel saw they got a big check from new firm so they got hit with full amount they still owed (not prorated) plus attorney fees – ouch!
If you take a check payback your pro-rated amount its industry standard, unless you really have promises that where written in your contract and then broken. the macro stuff (firm was bought, auction rates, management change) does not hold up well – its more what happened locally. eg- where you promised a level of support staff (written) and it changed…
As for leaving industry and person has no money— not much a firm can do except go to arbitration and ruin someones credit. However that person will have a hard time working in finance again.
When you make a deal you have to honor it. He got a check right? Not a victim. While I sympathize with bad market conditions, I agree with ABOM - slim chance to shirk your responsibilities. While it seem like a lousy deal, nobody is a victim unless support promises were broken. On the flip side, whatever firm this was, they get a bunch of assets and revenue and his best bet is to retain counsel and negotiate a settlement - maybe 30 - 40 cents on the dollar??? This is not complicated and wondering why you are concerned.
The agreements have fine print that is always to their benefit. Caveat Emptor - you deal with a devil and you reap the benefits and consequnces. When a firm pays your rent, gives you benefits and a big check that you readily accept - you sold your soul and you need to deliver. I am the last guy to side with a firm, but c’mon! As an business owner, if I gave someone a deal and they flaked out, what is my recourse?
Again, why are you worried about this? Maybe think twice if you are considering taking a check or at least hire a lawyer to strike some of the awful language - Or just don’t deal with these firms. It’s a choice.
When you make a deal you have to honor it. He got a check right? Not a victim. While I sympathize with bad market conditions, I agree with ABOM - slim chance to shirk your responsibilities. While it seem like a lousy deal, nobody is a victim unless support promises were broken. On the flip side, whatever firm this was, they get a bunch of assets and revenue and his best bet is to retain counsel and negotiate a settlement - maybe 30 - 40 cents on the dollar??? This is not complicated and wondering why you are concerned. Because the guy “he knows” is him…
The agreements have fine print that is always to their benefit. Caveat Emptor - you deal with a devil and you reap the benefits and consequnces. When a firm pays your rent, gives you benefits and a big check that you readily accept - you sold your soul and you need to deliver. I am the last guy to side with a firm, but c’mon! As an business owner, if I gave someone a deal and they flaked out, what is my recourse?
Again, why are you worried about this? Maybe think twice if you are considering taking a check or at least hire a lawyer to strike some of the awful language - Or just don’t deal with these firms. It’s a choice.
Okay. But hey, why spoil the fun?
http://www.youtube.com/ScottradeInc#p/a/u/2/HQ2detWDYgc
The fun...... But back to the subject at hand.....This guy is probably wondering because he is thinking about doing the same thing??[/quote] I have seen about 20 guys who took deals at firms I have been at, either a main client did not come, or they could not do syndicate like at the prior firm, etc etc. Bottom line Ive seen at least 15 do much less than the prior firm and they eventually quit or got fired. I knew about 10 people well and none of them payed back one nickle to the firm, after awhile the letters just stopped coming. Bottom line is if you leave the business and do not own a house the firms cant really do anything about it. Same attorney who got the firms for the O/T and other issues is going after the loans/notes now. He is very confident that the money given to brokers violates contract laws and when the money is given to the brokers it is theirs to keep not a note. If he is successful the firms have no leg to stand on to go after a nickel from anyone.[quote=LogansRun]Okay. But hey, why spoil the fun?
http://www.youtube.com/ScottradeInc#p/a/u/2/HQ2detWDYgc
[quote=LogansRun] When you make a deal you have to honor it. He got a check right? Not a victim. While I sympathize with bad market conditions, I agree with ABOM - slim chance to shirk your responsibilities. While it seem like a lousy deal, nobody is a victim unless support promises were broken. On the flip side, whatever firm this was, they get a bunch of assets and revenue and his best bet is to retain counsel and negotiate a settlement - maybe 30 - 40 cents on the dollar??? This is not complicated and wondering why you are concerned.
The agreements have fine print that is always to their benefit. Caveat Emptor - you deal with a devil and you reap the benefits and consequnces. When a firm pays your rent, gives you benefits and a big check that you readily accept - you sold your soul and you need to deliver. I am the last guy to side with a firm, but c’mon! As an business owner, if I gave someone a deal and they flaked out, what is my recourse?
Again, why are you worried about this? Maybe think twice if you are considering taking a check or at least hire a lawyer to strike some of the awful language - Or just don’t deal with these firms. It’s a choice.
[/quote]
well put
live by the sword, die by it
[quote=ABOM] seeing a lot of this lately with such long notes and people leaving the business.If someone goes to another firm and takes a check they have slim to no chance of skipping out of old promissory notes. Most firms only forgive note annually but firm will prorate if employee pays back promptly. Have heard a few recent cases where guys have tried to fight and went to arbitration. Panel saw they got a big check from new firm so they got hit with full amount they still owed (not prorated) plus attorney fees – ouch!If you take a check payback your pro-rated amount its industry standard, unless you really have promises that where written in your contract and then broken. the macro stuff (firm was bought, auction rates, management change) does not hold up well – its more what happened locally. eg- where you promised a level of support staff (written) and it changed…As for leaving industry and person has no money— not much a firm can do except go to arbitration and ruin someones credit. However that person will have a hard time working in finance again.
[/quote]
dumb question.
if your out of biz does arbitration mean anything to you?
in other words, do they have power besides suspending you etc?
[quote=Shania Twain] [quote=ABOM] seeing a lot of this lately with such long notes and people leaving the business.If someone goes to another firm and takes a check they have slim to no chance of skipping out of old promissory notes. Most firms only forgive note annually but firm will prorate if employee pays back promptly. Have heard a few recent cases where guys have tried to fight and went to arbitration. Panel saw they got a big check from new firm so they got hit with full amount they still owed (not prorated) plus attorney fees – ouch!If you take a check payback your pro-rated amount its industry standard, unless you really have promises that where written in your contract and then broken. the macro stuff (firm was bought, auction rates, management change) does not hold up well – its more what happened locally. eg- where you promised a level of support staff (written) and it changed…As for leaving industry and person has no money— not much a firm can do except go to arbitration and ruin someones credit. However that person will have a hard time working in finance again.
[/quote]
no thats why I said they would have a tough time with another finance job, that judgment goes against you. however if you didn’t go to another firm most likely company will not take you to arbitration due to expense so congratulations you get the money the firm and probably the branch manager who recruited you get really screwed.
dumb question.
if your out of biz does arbitration mean anything to you?
in other words, do they have power besides suspending you etc?[/quote]