- Nefissa Kraiem, a former sales trader in London at JonesTrading, is suing the firm and its international entity for sexual harassment and unlawful termination.
- The suit, filed in New York, alleges that the brokerage "operated like a rowdy frat house, with employees using sex workers at work-related events and entertaining clients and potential clients with illicit drugs."
- JonesTrading said Kraiem's complaint "lacks merit and its allegations are denied."
Nefissa Kraiem, who worked as an equity institutional sales trader at JonesTrading in London, is suing the firm and its international entity, saying she was "bullied, demeaned, objectified, molested, propositioned, harassed and prostituted by Jones' management."
"Jones operated like a rowdy frat house, with employees using sex workers at work-related events and entertaining clients and potential clients with illicit drugs," the complaint, which was seen by Business Insider, alleges. "Locker room talk was the norm, and Jones' traders regularly made vile, misogynistic jokes and remarks - which were frequently directed and targeted at plaintiff."
JonesTrading said in an emailed statement that the complaint "lacks merit and its allegations are denied."
Lawyers for Kraiem, who worked at the firm from June 2016 until January of last year, say that when she complained about her treatment, "Jones' employees retaliated against her by permitting the unlawful sexual harassment to continue unchecked (by, among others, the very supervisors to whom she had complained), and by unlawfully terminating her employment."
Attorneys at Broach & Stulberg LLP, filed the suit on May 31 in United States federal district court in the Southern District of New York.
One example in the document outlined an interaction at a bar in New York, where a Jones client propositioned Kraiem for oral sex. When Kraiem reported it to one of the bosses at the bank, the executive said, "in words or effect, 'I'll request a big ticket from him [i.e. the client] on Monday' - essentially boasting that plaintiff's sexual humiliation at work had commercial value for Jones," the suit claims.
Jones employed no more than five female traders and analysts at "all pertinent times" out of more than 90 traders and analysts, the suit alleged. During her employment she was the only woman employed in London, she claims.
JonesTrading Institutional Services LLC is headquartered in Westlake Village, California and has offices throughout the US, plus entities in Canada (JonesTrading Canada Inc.) and London (JonesTrading International Limited).
It's not the first time JonesTrading has been dragged into an unflattering spotlight.
The firm in August reportedly said it fired its general counsel after he was arrested for "engaging in sex acts with a minor," Bloomberg reported at the time. The lawyer, Jason Lavender, pleaded not guilty to six felony counts, "including two counts of lewd act upon a child and four counts related to sex acts with a person under 16," in California, Bloomberg said. The conduct was not linked to business at the firm.
The full JonesTrading comment is below:
"Ms. Kraiem's complaint lacks merit and its allegations are denied. The claims were initially brought in the United Kingdom and were ultimately withdrawn without any payment to her and a successful costs application was made against Ms. Kraiem.
For financial reasons, JonesTrading moved its London office in early 2018. All employees, including Ms. Kraiem, were offered the opportunity to continue their employment at our new location. JonesTrading provided additional financial incentives for all UK employees equally, including Ms. Kraiem, to help make the move easier for them. Ms. Kraiem was the only UK employee who chose to turn down an increase in compensation and not make the move.
For over 40 years, JonesTrading has provided tremendous career opportunities to all of its employees, including Ms. Kraiem, while maintaining an unrelenting focus on delivering results to its customers and upholding the highest standards of integrity in our business. JonesTrading will not be influenced by improper litigation tactics, and we intend to defend ourselves vigorously in this matter and expect the same outcome as the action filed in the United Kingdom."