Merrill Lynch says it is appealing a decision by a New York Stock Exchange arbitration panel that the company pay brokers Christopher Chung, William Savino and Kevin Brunnock a total of $14 million for firing them over their alleged involvement in market-timing activities.
In a state court motion to reverse the NYSE panel ruling, Merrill Lynch argues that the three were justly fired as they violated company policy by allowing client Steven Markovitz, a former trader at hedge fund Millennium Partners, to engage in market timing. Markovitz had pleaded guilty to fraud charges as they relate to his late-trading activity.
The lawyer for the brokers says Merrill’s decision to appeal the ruling is a bad move. “I think it’s going to get them more adverse publicity, Leonard Pack of the law firm Wechsler & Cohen, who represents the three brokers, told Bloomberg News.