TD Financial institution accused a number of former advisors who bolted for Raymond James of breaking non-solicitation vows and attracting purchasers with about $22 million in property to depart with them. The financial institution requested federal courts to approve a restraining order in opposition to the previous workers.
TD Financial institution and TD Personal Shopper Wealth filed their criticism and short-term restraining order request in Connecticut federal courtroom this week. They named the advisors Brett Bartkiewicz and Greg Desmarais, Raymond James and Crescent Level Personal Wealth, the affiliated agency the duo joined, within the swimsuit.
Bartkiewicz’s profession within the business dates again to 1994. Based on SEC data, he labored at Merrill Lynch, Wachovia, Fisher Investments and Mercer (amongst others) earlier than becoming a member of TD Personal Shopper Wealth in 2016. Desmarais joined the agency in 2011, in response to the criticism.
TD Personal Shopper Wealth argued within the criticism that as a situation of their employment, Bartkiewicz and Desmarais signed agreements to keep up the financial institution’s confidentiality and commerce secrets and techniques and that for 12 months following the tip of their employment at TD Personal Shopper Wealth, the advisors wouldn’t “contact, name upon or solicit” any shopper to lure their enterprise from the financial institution.
Nonetheless, in response to the criticism, on April 25, each advisors “abruptly” resigned from TD Financial institution. Quickly after, the duo joined Raymond James Monetary Providers with Crescent Level Personal Wealth as “household wealth advisors.”
Crescent Level, primarily based in Glastonbury, Conn., is an impartial agency affiliated with Raymond James Monetary Providers Advisors, the corporate’s present company RIA.
However since they resigned, TD Personal Shopper Wealth “obtained data” that led them to imagine the 2 advisors had been contacting TD Personal Shopper Wealth prospects immediately and providing “vital price reductions or product offers” to entice them to maneuver their enterprise to Raymond James.
“Of their positions as Personal Shopper Funding Advisor and Relationship Supervisor, each males had been intimately aware of TD Financial institution’s price construction, together with the charges that had been charged to particular prospects,” the criticism learn.
In a single week after the advisors left, TD Financial institution misplaced not less than 10 accounts totaling greater than $22 million in worth. The financial institution hypothesized the duo solicited not less than 12 TD Personal Shopper Wealth purchasers after they resigned and supplied a few of them considerably lowered charges to draw them to Raymond James (in a single case, providing a 15% discount in charges, in response to the criticism).
Representatives from Raymond James didn’t reply to a request for remark previous to publication.
In February, J.P. Morgan additionally sued a former worker for leaping to Raymond James and soliciting purchasers in violation of their alleged restrictive covenants. Based on that swimsuit, Matthew D. Sitarski labored as a financial institution department advisor in Ann Arbor, Mich., however attracted almost $4 million in enterprise after leaving for Raymond James (the events are at present in FINRA arbitration).
