J.P. Morgan Securities has filed a lawsuit in opposition to a Michigan-based dealer and former worker, alleging he broke nonsolicitation agreements when attempting to draw former shoppers to his new function at Ameriprise.
The go well with in search of a short lived restraining order in opposition to Lewis Duncan III is the newest in a variety of current circumstances from J.P. Morgan accusing former staff of comparable misconduct.
Duncan had been with a variety of former J.P. Morgan associates for greater than a decade, starting on the financial institution facet earlier than transferring right into a monetary advisor function, and finally turning into a personal consumer advisor working out of a financial institution department workplace in Flint, Mich., in line with the go well with filed in Michigan federal courtroom.
However Duncan immediately resigned on July 8, instantly becoming a member of Ameriprise in its personal Flint workplace, and started soliciting shoppers of his former employer, in line with J.P. Morgan. The agency allegedly heard from greater than 20 shoppers that Duncan contacted to affix him at Ameriprise, calling them on private cell numbers in overt makes an attempt to get their enterprise.
A day earlier than Duncan resigned, he held conferences with two J.P. Morgan shoppers, setting follow-ups for the next week, however a day after his resignation, Duncan allegedly known as one of many shoppers to alter the assembly to be at his Ameriprise workplace. In quite a few conditions, shoppers mentioned Duncan had hoped to proceed the connection and that they would transfer their accounts, in line with J.P. Morgan.
“Duncan has made repeated calls to some JPMorgan shoppers, to the purpose that a couple of JPMorgan consumer has instructed the agency that they aren’t proud of the moment and repeated follow-up calls from Duncan,” the go well with learn. “One JPMorgan consumer indicated that she was irritated by what number of instances Duncan requested her to observe him to Ameriprise, saying ‘I’ve had sufficient.’”
In a single case, a consumer instructed J.P. Morgan that Duncan known as her, and discovered that the consumer supposed to fulfill with their newly assigned J.P. Morgan advisor. Duncan allegedly requested them to cancel the assembly, telling the consumer they would wish to offer any account info to switch their accounts, as Duncan had already accomplished the kinds for them. J.P. Morgan believed the one method Duncan might have accomplished that type of paperwork was if he took consumer info with him to Ameriprise, in violation of agreements he had with the agency.
To assist their case, J.P. Morgan mentioned two days earlier than he resigned, Duncan accessed greater than 100 consumer profiles on the agency’s system, viewing about 76 within the span of lower than 45 minutes. In lower than half-hour on June 27, he allegedly accessed greater than 60 profiles. These included consumer names, electronic mail addresses and cellphone numbers, amongst different info.
“I’m not conscious of any legit enterprise motive why Duncan would wish to entry, simply two days earlier than his resignation and in speedy succession, the consumer profiles for practically one-third of the JPMorgan shoppers he was servicing,” attorneys for the agency Abbott Nicholson wrote on behalf of J.P. Morgan Securities within the go well with. Ameriprise declined to touch upon this story.
To this point J.P. Morgan estimates that about 20 households with roughly $24 million in property have transferred their enterprise from J.P. Morgan to Duncan at Ameriprise, in line with the go well with.
The go well with in opposition to Duncan is the newest in a variety of current courtroom actions filed by J.P. Morgan to forestall former brokers from allegedly soliciting earlier shoppers for his or her new corporations. Final week, J.P. Morgan argued a former dealer additionally from Michigan had attracted greater than $20 million in enterprise when he resigned to affix Stifel. J.P. Morgan additionally filed fits requesting TROs in opposition to an Arizona-based former dealer who left for Ameriprise, in addition to a married duo of advisors who departed the financial institution for Wells Fargo.