Ex-Dougherty head may move to Pennsylvania regional head.

Constantin G. Alio, the former chairman of A. Webster Dougherty & Co., is considering a move to Hopper Soliday & Co., a Pennsylvania regional bond firm.

Dougherty shut down last month after an arbitration panel ordered the firm to pay hundreds of thousands of dollars in compensatory damages.

Sources close to the matter said that in recent weeks Alio has interviewed with Hopper Soliday, though no formal agreement has been reached.

Hopper Soliday is a full-service broker-dealer that is known for its expertise in bank-qualified issues. The firm's main office is in Lancaster, Pa.

It is unclear what role Alio would play at Hopper Soliday, but sources say the firm is eager to hire the former Dougherty chairman, who has more than 30 years of municipal bond and securities-industry experience.

Hopper Soliday would "definitely like him to be a player," a source close to the talks said. Alio's official title has also not been determined, the source said.

Other sources familiar with the discussions say Alio may work as a securities salesman, or in Hopper Soliday's recruitment department.

Alio could not be reached for comment yesterday, and Hopper Soliday officials would not comment.

Alio's old firm, A. Webster Dougherty, was forced to shut its doors last month after an arbitration panel ordered the firm to pay J.B. Hanauer & Co., a New Jersey-based financial services firm, $310,000 in compensatory damages.

Hanauer filed a claim with the National Association of Securities Dealers in May 1993 following a dispute over a trade involving the two firms.

The award caused a capital crisis at Dougherty, forcing the firm to close, several market sources say. Dougherty executives have denied that the fine forced the firm to shut down, attibuting the closing to poor market conditions.

Alio's role in Dougherty's demise is unclear. In early November, Alio would not discuss the matter with this newspaper. Alio continues to work on matters relating to Dougherty's closing, sources with knowledge of the matter said.

As the firm was closing, Dougherty executives said a Boston firm, A.H. Wainwright & Co., would absorb Dougherty's public finance, financial advisory, fixed-income research, and asset management units.

Yesterday, Wainwright executives would not comment, but a source close to the firm said that former Dougherty employees and Wainwright continue to negotiate hirings.

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