Former Asia Managing Director Xiao sued banks in Hong Kong

(Bloomberg) – Philip John Shaw, head of Pan-Asia Executive Services at Citigroup Inc., sued Bank of America for filed a similar claim earlier this month in the city’s employment court, debated his summary firing in March 2019.

Xiao filed a lawsuit against Citigroup Global Asia Co., Ltd. in the Hong Kong High Court, demanding contract and employment torts. He is seeking monetary compensation, including other financial benefits deprived of during retirement and dismissal, as well as reputational losses suffered from suspected unlawful dismissal. A Citigroup spokesman declined to comment.

Shortly before the expiration of the six-year restriction regulations, the case of unfair dismissal of Shaw’s former committee was brought up. Shaw, who served as managing director, is the top manager of the Asian equity seller team, Citigroup’s regulator at the Asian financial hub revealed problematic practices in the bank’s Asian market sector, which lasted for about a decade.

In March 2023, Hong Kong’s Securities and Futures Commission banned Xiao from re-entering the industry, saying “his behavior far exceeded expectations from senior executives of the company.”

The previous year, SFC fined Citigroup $348.3 million ($44.8 million) and condemned its “universal dishonest behavior” and its serious internal control failure in its Asian market sector. The regulator said sales traders mistakenly marked so-called signs of interest in trying to inspire business, sometimes misrepresenting the bank’s offer to buy or sell shares as customer interest.

Citigroup disbanded its Asian high-point stock sales trading desk in 2019 after accusing several employees of serious misconduct and fired them. Bloomberg News reported earlier that the Hong Kong-based employee also lost the retirement benefits they generated at the company.

Following the regulatory action, former Citigroup Asia salesman in Tokyo and Hong Kong filed a false claim for dismissal against the bank, accusing it of unfair and hostile internal investigations and scapegoating it. They also claim that management implicitly condoned sales practices over the years. Citigroup denied that they were unfairly terminated and said it had conducted a thorough investigation before it was disciplined.

In the UK, Citigroup reached a settlement last year with Ian Weir, part of the Asia-Pacific market team, after the employment court ruled his support. A Japanese court ruled last summer that Citigroup must compensate the fired businessmen.

The latest verdict was in Hong Kong in December 2024. Cindy Lui, a former seller on the same team, was awarded her pension benefits and contractual compensation, equivalent to the benefits she would receive if Citigroup had issued a notice before termination.

After the court rejected her claim for compensation for the job offer, Lui sought review. According to the court diary, no fee was granted by either party and the next hearing is scheduled to be held on April 2.

Four of her former box offices filed similarly wrongful firing claims earlier this month after the ruling on the LUI case.

In the case of Shaw Brothers, the subpoena order of the Hong Kong High Court is usually valid for 12 months from the date of issuance. The window will give him time to decide whether to proceed with litigation based on the outcome of his former committee’s case in the Labor Court.

– Assistance with Kiuyan Wong.

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