Fighting words
Bond trader claims Seaport ‘front-ran’ clients
A Manhattan bond trader is fighting to keep alive a 3year-old battle against his former lawyers and accountants, alleging they “conspired” to keep him away from a $15 million payday.
Drew Doscher — formerly of Seaport Global — was ousted from his job in 2013 after he discovered — and objected to — “multiple illegal trading schemes” at the investment bank, he claims in court papers.
Seaport maintained “a secret backbook,” which it used to operate its own hedge fund to “illegally ‘front-run’ ” clients’ trades, Doscher claims in the filing — elaborating for the first time on allegedly why he was tossed from the firm.
“After being asked by clients to buy or sell certain securities, the firm would execute its own trades in those securities to profit from the client’s impending trades,” Doscher said in an affidavit filed with court papers on Wednesday that seek to counter a move by his former lawyers and accountants to have his suit thrown out of court.
In his previous filing, Doscher was less clear about the alleged improper activities at Seaport that led to his objections — and ultimate dismissal.
For example, in an earlier court filing, Doscher claimed he “believed [his colleagues] violated the applicable Finra FrontRunning Policy at the time.”
Doscher commenced Finra arbitration against his former firm in 2014 to get his full partnership payout. Instead of getting $15 million plus interest, the distressed debt expert was awarded only $2.3 million, he claimed.
After his effort to obtain the larger payout failed, Doscher sued his legal eagles and CPAs — alleging the team of Sobel & Co. accountants and the lawyers at McMillan, Constabile, Foster & Perone improp- erly withheld 5,000 pages of evidence that would have proved his case for the larger payout.
The two firms withheld the documents on the instruction of Seaport, Doscher claims in his latest court filing, made Wednesday in state court in Manhattan.
Lawyers for Sobel and McMillan, Constabile declined to comment. Reps for Seaport did not immediately respond to requests for comment.
Doscher is also involved in a legal battle centered on a popular beachfront restaurant/bar located 120 miles east of Wall Street — in Montauk, on the eastern tip of Long Island.
The bond trader is a coowner of the Sloppy Tuna and is battling with his partners — who are former partners at Seaport Global.
That nasty legal skirmish involved 11 lawsuits filed over the past three years — over everything from the eatery’s logo to trademark and land ownership rights.
The bar was handed over to a court-appointed receiver while the Wall Street guys battled. In May 2016, it reopened with a new management team.