Tr?id=566623520170033&ev=PageView&noscript=1

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
Quotes Bigger

I cannot thank you enough for your efforts. You have proven to be a valuable resource.

Jim T.

LATEST NEWS AND ARTICLES

1786394861 Law
August 10, 2026
FINRA Fines RBC Capital Markets $275,000 Over Anti-Money Laundering Compliance Deficiencies

The Financial Industry Regulatory Authority (FINRA) has censured and fined RBC Capital Markets $275,000 after determining that the firm failed to establish and implement reasonable anti-money laundering (AML) policies and procedures.

1786394691 Law
August 10, 2026
Federal Judge Rejects Merrill Lynch's Renewed Bid to Force Dynasty Into FINRA Arbitration

A federal judge has denied Merrill Lynch's second attempt to compel Dynasty Financial Partners to arbitrate a high-profile dispute arising from allegations that the registered investment adviser (RIA) platform orchestrated the departure of a large Atlanta-based advisory team, according to AdvisorHub.

1786029344 Law
August 6, 2026
Account Takeover Fraud Continues to Rise as Cybercriminals Refine Their Tactics

Cybercriminals continue to refine account takeover schemes, driving billions of dollars in losses for businesses and consumers each year.