(Bloomberg) -- Sterne Agee Group's former chief executive officer faces a U.S. probe into whether he misused company assets such as airplanes, boats, hunting clubs and condominiums, a person with knowledge of the matter said.

The Treasury and Justice departments are examining James Holbrook Jr., who was chairman and CEO until his ouster last month, and his son, William Holbrook, who served as chief operating officer, according to the person, who asked not to be named because the investigation hasn’t been publicly announced. Leaders of the firm in Birmingham, Alabama, sent a memo to staff June 20, telling them an inquiry would be disclosed soon in the former CEO’s industry employment record, the person said.

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