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

J.P. Morgan Accuses Advisor Of Improperly Transferring Clients to Morgan Stanley in His Transition

Posted on January 25th, 2023 at 2:10 PM
J.P. Morgan Accuses Advisor Of Improperly Transferring Clients to Morgan Stanley in His Transition

From the Desk of Jim Eccleston at Eccleston Law.

J.P. Morgan has asked a court for a temporary injunction to stop a former advisor from transferring clients during his transition to his new firm, Morgan Stanley.

J.P. Morgan alleges that a former advisor, Joseph Michael, improperly persuaded at least 32 J.P. Morgan clients to transfer their accounts to him at Morgan Stanley. According to J.P. Morgan’s complaint, the accounts held assets totaling nearly $28 million. “The clients have informed JPMorgan that Michael’s communications have been more than simply announcing his change of employment, and that he is actively requesting meetings with the clients or otherwise seeking to induce them to do business with him at Morgan Stanley”, according to J.P. Morgan.

In addition to purportedly breaching his non-solicitation agreement, J.P. Morgan alleges that Michael breached confidentiality provisions that were included in his employment agreement with the firm. J.P. Morgan’s investigation allegedly determined that Michael had suspiciously accessed client profiles about 328 times in his last full month of employment. The client profiles contain a swath of confidential information, including names, addresses, email addresses, and phone numbers.

The case is yet another example of how important it is to understand the law and any enforceable contractual restrictions in planning a successful transition.

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

Tags: eccleston, eccleston law, advisors, law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

1782150000 Law
June 22, 2026
Illinois Regulators Accuse "Mr. Finance" of Operating Unlicensed Investment Scheme

Illinois securities regulators have accused a Chicago-area businessman known as "Mr.

1781893504 Law
June 19, 2026
FINRA Suspends Former Stifel Rep for Undisclosed Customer Settlements

The Financial Industry Regulatory Authority (FINRA) has suspended a former Stifel representative for three months and imposed a $10,000 fine after finding that she settled customer complaints without notifying her firm and conducted securities-related communications through an unapproved personal device.

1781798110 Law
June 18, 2026
Silver Star Properties REIT Files for Chapter 11 Bankruptcy Amid Mounting Defaults and Investor Losses

Silver Star Properties REIT, a publicly registered nontraded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., has filed for Chapter 11 bankruptcy protection, according to reports by AltsWire.