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

Former Steward Advisors Sue Firm as They Depart for LPL

Posted on October 27th, 2023 at 2:29 PM
Former Steward Advisors Sue Firm as They Depart for LPL

From the desk of Jim Eccleston at Eccleston Law 

Experienced brokers have witnessed a significant increase in recruiting offers in recent years. However, a lawsuit filed against Steward Partners Global Advisory last week illustrates the consequences that can arise when these deals, particularly those involving equity, take a negative turn. 

Two Texas advisors who transitioned to LPL Financial admitted in their lawsuit that Steward accused them of underperforming. Consequently, Steward aimed to recover the millions it had initially disbursed to them in cash and company shares when they joined Wells Fargo Advisors in 2020. In their complaint, Rick A. Fuchs and Graham P. Heck are pushing back by alleging that Steward inflated the value of their recruiting deal by providing misleading information about the shares' worth.

According to AdvisorHub, in 2021, the advisors asserted that the shares were valued at just $13.22 per unit, resulting in a collective decrease in the value of their deal by $600,000. Moreover, the advisors alleged that, in January 2022, Steward, facing a "cash crunch" initiated reclaiming a portion of the recruiting bonus from advisory teams.

Under the threat of termination, the advisors repaid $1 million and two-thirds of the shares they had received. They are now pursuing an unspecified amount of damages, claiming that Steward violated federal securities laws.

 

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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1791220249 Law
October 5, 2026
House Passes Bill to Restore Tax Deduction for Financial Fraud Victims

Victims of financial fraud may soon receive additional tax relief under legislation that overwhelmingly passed in the House of Representatives.

1790960250 Law
October 2, 2026
FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

A Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services arbitration panel awarded nearly $1.34 million in compensatory damages to a Charles Schwab & Co.

1790867615 Law
October 1, 2026
Prosecutors Target Multimillion-Dollar Investment Schemes Involving Promissory Notes

Federal prosecutors recently pursued two investment fraud cases involving promissory notes that caused combined investor losses exceeding $25 million.