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

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

1788461574 Law
September 3, 2026
Texas Investment Adviser Faces Washington State Charges Over Misleading Crypto Portfolio Claims

Washington state securities regulators have charged an Austin, Texas registered investment adviser (RIA) and its founder with making misleading statements about the risks tied to one of its model portfolios, which invested heavily in crypto-backed products and volatile exchange-traded funds, according to InvestmentNews.

1788376975 Law
September 2, 2026
Lakers Owner Sells Team for Record $12.5 Billion Amid Federal Probe

Guggenheim Partners CEO Mark Walter has sold his majority stake in the Los Angeles Lakers just as federal regulators investigate potential financial improprieties at insurance and annuities companies that he owns, InvestmentNews reports.

1788292150 Law
September 1, 2026
FINRA Proposes New Rules to Fix Unpopular Arbitrator Selection Process

The Financial Industry Regulatory Authority (FINRA) wants to change how it selects arbitrators when its standard process fails to produce enough available panelists.