J.P. Morgan Files Suit Against Cresset Over Recruitment of Private Bankers

Posted on August 31st, 2021 at 2:02 PM
J.P. Morgan Files Suit Against Cresset Over Recruitment of Private Bankers

From the Desk of Jim Eccleston at Eccleston Law:

J.P. Morgan has filed suit against Chicago-based Cresset Asset Management after Cresset’s alleged raid and recruitment of at least 10 J.P. Morgan private bankers. 

J.P. Morgan alleges that Cresset co-chairman and former Midwest regional head for J.P. Morgan’s private bank, Douglas Regan, solicited J.P. Morgan bankers he had worked with prior to his departure in 2017. According to J.P. Morgan, Regan’s conduct breached non-compete clauses and resulted in the “loss of tens of millions of dollars in client assets and substantial revenue well in excess of $75,000.” While J.P. Morgan has not determined the full amount of damages it intends to claim, the bank also alleges that Cresset emphasized hiring former J.P. Morgan employees early in the firm’s formation, which qualifies as an “impermissible raid” of the bank. The bank further alleges that Cresset possesses “vital” documents and information related to the recruiting and hiring of former J.P. Morgan bankers. 

However, Cresset responded that the documents sought by J.P. Morgan are “overly broad and unduly burdensome” for determining whether Regan improperly recruiting J.P. Morgan employees. Cresset also claims that J.P. Morgan’s request for documents featuring Cresset’s financial status, confidential business plans, and compensation arrangements are “irrelevant” to the controversy at hand. According to J.P. Morgan’s complaint, Regan terminated his employment with the bank in May 2017 to join Cresset after working for J.P. Morgan since August 2012. 

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

Tags: eccleston, eccleston law, jp morgan, recruitment

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