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

Goldman Sachs Reports Garden Leave Violations on CRDs of Former PFM Advisors

Posted on January 11th, 2024 at 1:28 PM
Goldman Sachs Reports Garden Leave Violations on CRDs of Former PFM Advisors

From the desk of Jim Eccleston at Eccleston Law 

Goldman Sachs has introduced further challenges for former advisors of its Personal Financial Management (PFM) unit who departed for competitors before the unit's sale to Creative Planning in November.

A review by AdvisorHub of Central Registration Depository (CRD) data from state securities regulators reveals that at least 31 former PFM advisors' licensing records include "employment separation after allegations.” According to Form U-5 notices filed by Goldman Sachs, those advisors are accused of violating the terms of their contracts by commencing employment with another firm before the expiration of their garden leave (notice) periods. The Form U-5 filings state that after the individuals voluntarily resigned, Goldman Sachs accelerated their separation due to concerns about them representing an unaffiliated financial institution before the completion of their notice periods, thereby violating contractual obligations to the firm.

According to AdvisorHub, Goldman Sachs employed various legal strategies to retain PFM advisors following the unit's sale, including blemishes on advisors' records as one such tactic. The bank marked up termination forms with allegations indicating violations of contract terms to discourage voluntary resignations. These actions were part of broader legal maneuvers, including breach of contract and non-compete claims filed in arbitration across multiple states, as revealed by a spokesperson.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters, and is particularly interested in hearing from aggrieved former Goldman Sachs advisors.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

1787592120 Law
August 24, 2026
Sophisticated Voice Phishing Attacks Target Major Wall Street Firms

According to ThinkAdvisor, hackers recently launched a series of sophisticated cyberattacks against major Wall Street firms, including prominent hedge funds and private equity companies.

1787342003 Law
August 21, 2026
Rising Market Leverage Raises Concerns About Financial Stability Despite Low Volatility

The leverage that has helped drive the U.S.

1787244289 Law
August 20, 2026
FinCEN Imposes Record $125 Million Penalty on UBS Financial Services

The Financial Crimes Enforcement Network (FinCEN) has imposed a $125 million civil money penalty against UBS Financial Services Inc.