Jan 23 (Reuters) - Citigroup Inc must pay around $24 million to a team of institutional advisers for breaching their contract, a Financial Industry Regulatory Authority arbitration panel has ruled.

James Bryan Minchello and Ryan Minchello filed the case in 2009, alleging that Citigroup failed to compensate them for certain transactions, according to their lawyer, Peter Pendergast in Boston. Their assistant, Martha Jane Sullivan, was also a claimant in the case.

The team, which worked at Citigroup until 2009, initially sought $78 million in compensatory damages and more than $156 million in punitive damages, according to the FINRA panel ruling. They also asked for legal fees and other financial relief. The panel's nearly $24 million ruling against Citigroup includes $15.8 million in compensatory damages, $1 million in sanctions and about $7 million in interest, according to the ruling, dated Friday.

The Minchellos, who are brothers, are now employed by a unit of J.P. Morgan Securities LLC, a unit of JP Morgan Chase & Co.

"We are disappointed with this outcome and disagree with the decision," a Citigroup spokeswoman said.

FINRA arbitrators did not explain the reasoning for its award, which is typical of most arbitration rulings.

The FINRA arbitration is Minchello et al v. Citigroup Global Markets, Inc. et al, No. 09-02800.

For the claimants: Peter Pendergast of Prince Lobel Glovsky & Tye.

For Citigroup: Michele Coffey and Prashanth Jayachandran of Morgan, Lewis & Bockius.

(Reporting by Suzanne Barlyn)

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