Cantor Fitzgerald LP Sues Former Bankers Over Alleged Client Poaching

Posted on April 11th, 2024 at 3:36 PM
Cantor Fitzgerald LP Sues Former Bankers Over Alleged Client Poaching

From the desk of Jim Eccleston at Eccleston Law 

Cantor Fitzgerald LP has initiated legal action against PEI Global Partners Holdings LLC, a firm founded by a group of its former investment bankers, alleging the illicit solicitation and theft of valuable clients, potentially worth millions of dollars in profit.

As reported by Bloomberg Law, the lawsuit filed by Cantor represents the latest development in an ongoing dispute between the securities firm and a team it recruited
in 2018 to establish a power, energy, and infrastructure banking division. Key members of this team, Kevin Phillips, John Bills, and Schuyler Fabian, departed Cantor in 2021 to establish PEI.

Cantor's complaint contends that the bankers violated their employment contracts by actively soliciting Cantor's clients immediately after resigning, persuading them to terminate engagements with Cantor and engage PEI instead. Allegedly, Phillips assured Cantor that a pending deal would have generated $4 million in profit for the firm, while PEI accrued $10 million in fees from another deal in 2022.

Responding to Cantor's allegations, Joshua Liston, representing PEI, emphasized the rejection of similar claims by a Financial Industry Regulatory Authority (FINRA) arbitration panel, and expressed confidence in PEI's defense.

The legal battle follows a prior dispute where Cantor sought repayment of $4 million in forgivable loans granted to the bankers upon their recruitment from Jefferies Financial Group Inc. The bankers, in turn, challenged a FINRA decision on this matter, seeking to nullify the repayment obligation.

Bloomberg Law reports that both sides present contrasting narratives regarding the bankers' tenure at Cantor. Cantor asserts that the bankers were generously compensated but sought further gains by redirecting clients to PEI. Conversely, the bankers claim that Cantor reneged on agreements, altering revenue-sharing arrangements to their detriment.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

February 4, 2026
Investor Redemptions Rise in Nontraded BDCs Amid Credit Concerns

Financial advisors and their clients have increased redemptions from nontraded business development companies (BDCs) following a series of high-profile corporate bankruptcies, according to InvestmentNews. The surge highlights growing investor concern about liquidity and credit exposure within these high-yield but often risky investment ...

February 3, 2026
FINRA Accuses Spartan Capital of Widespread Churning That Allegedly Harmed Customers

The Financial Industry Regulatory Authority (FINRA) has brought a disciplinary complaint against Spartan Capital Securities and several senior leaders of the New York City–based broker-dealer, alleging that the firm facilitated excessive trading that generated millions of dollars in revenue while causing substantial losses to customers.

February 2, 2026
California Investors Allege Unsuitable DST Recommendations in FINRA Arbitration

Two investors from the San Francisco Bay Area have filed a FINRA arbitration claim against brokerage firm Realized Financial and its financial advisors.