Kidder Paying Wigton During His Suspension
NEW YORK — Kidder, Peabody & Co. denied reports Friday that a suspended senior employee accused in a major insider trading probe has been reinstated, but the firm said it has resumed paying his salary and legal bills.
In what it called a “clarification statement,” Kidder said press accounts concerning a change in the status of Richard B. Wigton were inaccurate. The accounts quoted attorneys for Wigton as saying that Kidder had offered to reinstate Wigton, a 30-year employee of the prestigious brokerage who was indicted in April.
The New York Times quoted what it called sources close to Kidder as saying management made the move to rebuild morale at Kidder, which has been tainted by the government’s crackdown on Wall Street corruption.
Kidder underwent a major internal shake-up in June by its corporate parent, General Electric Co. The firm also paid the Securities and Exchange Commission a $25.29-million penalty to settle charges of insider trading.
“Mr. Wigton’s status as a suspended employee remains unchanged,” the Kidder statement said. “However, since Richard Wigton is not currently under indictment and has not been for several months, it now seemed appropriate to pay his legal bills and compensation in line with Kidder Peabody and G.E.’s practice in dealing with employees who are under investigation but not indictment.”
The statement said Wigton will continue to devote all his time to personal affairs and will not be involved in Kidder business.
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