(Crain's) — Lewis Borsellino, the former Chicago trader who last year won $11 million in his lawsuit against former business partners, is being sued for a share of the award by a childhood friend.
Nick Boscarino alleges in a lawsuit filed earlier this month that he gave longtime friend Mr. Borsellino $174,000 in March 1997 in exchange for 50% of the profits from an electronic trading system that Mr. Borsellino was developing with his partners.
Mr. Borsellino later promised his friend that he would also give him half of any proceeds from the lawsuit Mr. Borsellino filed against the partners, according to the suit brought by Mr. Boscarino.
Mr. Borsellino, a former trader on the Chicago Mercantile Exchange floor, won $11 million in damages from a Cook County Circuit Court jury that determined his partners — including former New York Stock Exchange President Gerald Putnam — misrepresented or concealed important information when they persuaded him in the late 1990s to sell his share of the business for a fraction of its value. The business was later developed by the partners into the all-electronic Archipelago Holdings Inc. stock exchange.
Mr. Boscarino, who served time in federal prison on a 2004 conviction for money laundering, mail fraud and tax crimes, is suing Mr. Borsellino for breaches of partnership agreement and fiduciary duty.
Jon Loevy, an attorney for Mr. Borsellino at Chicago-based Loevy & Loevy, called the lawsuit “frivolous” and declined further comment. Andrew Staes, an attorney for Mr. Boscarino at Chicago-based Staes & Scallan, didn’t return a call seeking comment.
“Borsellino claimed that there would likely be no net proceeds (from the jury award) after the attorneys are paid,” Mr. Boscarino said in the lawsuit. “That claim was obviously untrue and, in effect, was an anticipatory refusal to pay or to commit to pay Mr. Boscarino the proceeds that would be due him.”
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