WJB Shuts Brokerage After Hiring Citadel Bankers

Jan 4 2012 | 2:09am ET

Less than a month after landing new jobs, a pair of former Citadel Investment Group bankers are out on the street once again.

Bryan Maher and John Newman joined broker-dealer WJB Capital Group last month after stints at Citadel Securities, the hedge fund giant's investment banking group. Citadel all but shuttered that division in August.

Unfortunately for Maher, Newman and A.B. Mendez, a former analyst a GreenCrest Capital who joined WJB at the same time, their new firm was on shaky footing. The ground fell out from under it yesterday, when New York-based WJB told its employees that it would close its brokerage operations after it failed to find affordable capital.

WJB's non-brokerage operations are exploring "other possibilities," general counsel Mark Skolnick said. The firm does not plan to file for bankruptcy, he said.

WJB was "unable to raise capital in a manner that would have allowed the firm to continue its operations given the current climate and the constraints that would have been placed on everyone," CEO Craig Rothfeld told Bloomberg News.

WJB had about 100 employees, some of whom had lend the firm money.

Just days ago, WJB was sued by James McNally—who called himself an investor in the firm but who WJB says was merely a lender—for fraud and breach of contract. According to McNally, who also named Rothfeld in the suit, the firm misused his money and failed to pay him as promised.

Rothfeld denied the allegations, telling Bloomberg that McNally received monthly interest and that his claims are "baseless and without merit."


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.