“We are disappointed and disagree with the panel’s findings, and we are reviewing our options,” said Alexander Samuelson, a spokesman for New York-based Citigroup. Philip Aidikoff, one of Hagman’s lawyers, didn’t return a call for comment.  

(Bloomberg writes) The arbitration board said it enforces punitive damages under its authority if a company “has engaged in serious misconduct,” according to the ruling. The board didn’t provide a reason for its decision.

The claim, filed in May 2009, related to “unspecified securities” in Hagman’s accounts and the purchase of a life insurance policy. It was against the Smith Barney brokerage, which was held within Citigroup Global Markets before Morgan Stanley purchased a controlling stake in a joint venture with Smith Barney last year.