Former JPMorgan Advisor Agrees to Injunction Amid Solicitation Allegations
From the desk of Jim Eccleston at Eccleston Law
A former JPMorgan advisor sued last week, in connection with his transition to an independent practice with Kestra Private Wealth Services, has agreed to a stipulated injunction prohibiting him from soliciting his former customers.
The decision comes in response to a lawsuit filed by JPMorgan, accusing the advisor of soliciting at least six customers and urging them to transfer accounts to Kestra, a move that allegedly violated his previous employment agreements with JPMorgan.
The stipulation mandates the return of any client documents taken. It places the court case on hold pending a related claim filed by JPMorgan in arbitration with the Financial Industry Regulatory Authority (FINRA). The agreement permits him to process account transfer requests initiated by former customers and continue serving those who choose to move.
According to AdvisorHub, JPMorgan has a history of legal action when its bank-based advisors depart for competing firms, acting through its broker-dealer entity, J.P. Morgan Securities.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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