[ by Melanie Gretchen ] UBS took a former broker to arbitration claiming that he owed the firm a signing bonus that he was not entitled to.  The broker left before the "loan" was forgiven and thus, according to UBS, he had an obligation to return the loan to the firm.  Typically, these cases are "open and shut" with the firm winning the case are received the award. UBS Financial Services Inc. vs. Pericles Gregorious. However, that's not how this case went down.  In this rare case, the FINRA panel found in favor of the broker, and ruled he was not liable for $1 million in damages claimed by UBS.  Pericles Gregariou joined UBS in 2007, and was paid a $1 million signing bonus.  Two years later, in 2009, Gregorious left without repaying UBS for the bonus. In this FINRA arbitration case, held in Miami, FL, the panel resolved the dispute between claimant UBS; repondent Gregariou; and third-party respondents - that included David Bigler, Angel Alvarez, Daniel Perron, Pat Fleming, Paul Walker, and Richard Suss.  Following the panel's discussion, UBS spokeswoman Karina Byrne expressed the firm's disappointment, saying the firm would intend to explore all available options going forward. Brokers v. Firms. Signing bonuses, called "employee forgivable loans" are paid by firms upfront and structured as loans forgiven over time - usually a 7-year period.  Brokers who leave the firm, or are fired before the loan is over, must return part of the payment.  Typically, brokers are not successful in arbitrations. The FINRA arbitration ruling is: In the matter of the Arbitration between UBS Financial Services Inc. v. Pericles Gregorious vs. David Bigler et al, No. 09-07223. For more details, go to [Reuters, 2/6/12].