Hightower Sues Two Advisors For Allegedly Poaching Clients
From the Desk of Jim Eccleston at Eccleston Law:
Hightower Advisors has filed suit against two advisors for allegedly soliciting their clients to join them at their new firms.
Hightower alleges that Michael Policar improperly convinced at least 27 clients to bring their business to NGP Financial Partners after he left the firm in January 2021. According to Hightower, Policar continued telephoning his former clients after joining NGP Financial Partners in violation of his employment agreements, which prohibit client solicitation for at least twelve months. Hightower further alleged that Policar misappropriated confidential information in order to solicit the former clients. Hightower’s complaint, which does not ask for an injunction or temporary restraining order (TRO), seeks at least $500,000 in damages plus the retrieval of any confidential client information.
Hightower also sued and obtained a TRO against former advisor David Rubis, who left the firm in August and joined Clearstead Advisors in Cleveland, Ohio. In December, Rubis agreed to a stipulated injunction prohibiting him from soliciting former clients and requiring him to return any confidential client information, according to court documents. Hightower alleged that Rubis began building his client list when he joined the firm in 2019. Rubis eventually oversaw 85 clients and generated $1.2 million in annual revenue. However, Rubis allegedly convinced nine clients to join him at Clearstead Advisors in October, according to the complaint. Hightower originally was seeking at least $1 million in damages when the firm filed the complaint in October 2021.
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