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

Hightower Alleges Former Advisor Used RIA Sale Proceeds To Open Competing Firm

Posted on March 15th, 2022 at 11:55 AM

rom the Desk of Jim Eccleston at Eccleston Law:

Hightower Advisors has filed suit against a former advisor, John Gibson, alleging that he improperly solicited his former clients to join him at a competing firm.


Gibson, who oversaw more than $1 billion in client assets, allegedly sold his Huntsville, Alabama registered investment advisor (RIA) to Hightower and used the proceeds to launch a competitive business. According to Hightower’s complaint, Gibson’s conduct was “in violation of several restrictive covenants”.


After selling Twickenham Wealth Advisors to Hightower in February 2019, Gibson collected at least $600,000 in cash and more than 100,000 shares of Hightower equity units. However, Gibson agreed to not compete against Hightower or solicit any former clients for at least five years, according to Hightower’s complaint. Hightower alleges that Gibson has already transferred nearly $3.3 million worth of client funds to his new firm, BrightHaven Capital Management. Hightower is pursuing a preliminary injunction to halt Gibson from continuing to solicit his former clients, pending the outcome of a parallel Financial Industry Regulatory Authority (FINRA) arbitration.


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

 
 

Tags: eccleston law, RI, FINRA

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

1774452488 Law
March 25, 2026
Inspired Healthcare Collapse Triggers Investor Claims and Heightened FINRA Scrutiny

The collapse of Inspired Healthcare Capital has left investors facing significant losses and has intensified legal exposure for broker-dealers and financial advisors who sold the company's private offerings.

1774367895 Law
March 24, 2026
Former Morgan Stanley Advisor Convicted in $5 Million Fraud Scheme Involving NBA Players

A federal jury convicted former Morgan Stanley advisor Darryl Cohen for orchestrating a fraud scheme that targeted three professional basketball players and resulted in losses totaling approximately $5 million, according to Wealth Management.

1774288690 Law
March 23, 2026
FINRA Charges Sutter Securities and Former CEO in Excessive Trading Case Involving Elderly Client

The Financial Industry Regulatory Authority (FINRA) has filed an enforcement complaint against Sutter Securities Inc.