FINRA has ruled that Deutsche Bank must pay Stephen Colavito, who was a managing director for the firm in Atlanta, $3.6 million in an employment dispute. FINRA arbitrators found that another Deutsche Bank managing director "systematically blocked" Colavito from conducting business with institutional clients. The award includes nearly $1.7 million in punitive damages. Punitive damage awards are "very rare" in arbitration rulings, according to Craig Stein, a securities lawyer in Palm Beach, Florida. The Dec. 27 ruling also includes nearly $1.7 million in compensatory damages and $318,000 in legal fees. Colavito, who is now a director at Barclays Wealth, a unit of Barclays PLC, was ordered to pay the firm $855,000 for the unpaid balance owed for his signing bonus, according to the ruling. Colavito joined Deutsche Bank in 2008, according to regulatory filings. Arbitration awards are typically binding but the losing party can try to overturn the ruling in a court proceeding. "We disagree with the panel's decision and are reviewing our options," a Deutsche Bank spokeswoman said in a statement. A lawyer for Colavito declined to comment on the ruling. [Reuters - 1/3/12]