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

Morgan Stanley Seeks to Stop Two Departing Advisors from Transferring Inherited Accounts

Posted on May 9th, 2022 at 2:59 PM
Morgan Stanley Seeks to Stop Two Departing Advisors from Transferring Inherited Accounts

From the Desk of Jim Eccleston at Eccleston Law:

Morgan Stanley is seeking a temporary restraining order (TRO) in an effort to block two of its former New-Jersey based advisors from soliciting clients whom they inherited via the firm’s Former Advisor Program (FAP). 

Joseph Hutchinson and Robert Gibbs allegedly violated their employment agreements by misappropriating confidential client information because of their success in transitioning clients inherited from a retired advisor, according to Morgan Stanley. Hutchinson and Gibbs, who recently joined RiversEdge Wealth partners, have transferred nearly $20 million of the $175 million book they inherited from the former advisor, Leo Russomanno. According to Morgan Stanley, Hutchinson and Gibbs agreed to a one-year solicitation ban in the event they were to depart the firm. 

Morgan Stanley sent demand letters to each advisor after their departure on April 19 prior to filing its lawsuit, but each denied misappropriating the firm’s confidential client information or soliciting the clients. According to the complaint, the $175 million in assets constituted nearly 85% of the advisors’ total client book. Hutchinson and Gibbs have been “depriving” Russomanno, who retired in 2019, of his retirement income, according to Morgan Stanley. 

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

 
 

Tags: eccleston law, morgan stanley, tro

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1787157891 Law
August 19, 2026
Former UBS Financial Advisor Suspended and Fined Over Unauthorized Trading Allegations

The Financial Industry Regulatory Authority (FINRA) suspended a former UBS Wealth Management USA broker for three months and fined him $10,000 after finding that he executed hundreds of trades in two customers' accounts without the required written authorization.

1787156982 Law
August 19, 2026
FINRA Suspends Former Gradient Securities Advisor

The Financial Industry Regulatory Authority (FINRA) has suspended former Gradient Securities representative Mark J.

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.