Fired Trader Seeks Release of Funds

From Associated Press

Joseph Jett, a bond trader fired from Kidder, Peabody & Co. for allegedly reporting bogus profits, sought in state court Thursday to force Kidder to release almost $5 million of his money.

Jett's lawyer said Justice Martin Stecher signed an order directing the securities firm to explain in Manhattan's State Supreme Court next Tuesday why Kidder should not have to give Jett the money.

Kenneth E. Warner, Jett's attorney, said the firm froze Jett's cash management account of $4.8 million and his vested executive compensation account of $130,000.

Jett, 36, was the head of Kidder's government bond trading department and has been accused of creating phantom trades and profits that inflated Kidder's income by more than $350 million over more than a year.

Kidder has filed a $10-million arbitration claim against Jett.

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