CitiMortgage Withheld Sales Commissions, Suit Says

Law360, New York (February 4, 2011, 4:07 PM EST) -- A former sales manager for Citigroup Inc.'s mortgage lending unit has launched a proposed class action accusing the lender of unlawfully requiring employees to forfeit earned commissions if they leave the company before a loan closing.

Sotirios Stamatis filed a complaint Wednesday in the U.S. District Court for the Southern District of California alleging CitiMortgage Inc. violated California labor law by withholding commissions earned from selling a loan if the loan representative quits or is fired before the loan is processed and before customers pay for...
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