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

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