Morgan Stanley Sues a Former Adviser for Allegedly Misappropriating Confidential Client Information

Posted on January 10th, 2018 at 3:24 PM
Morgan Stanley Sues a Former Adviser for Allegedly Misappropriating Confidential Client Information

From the Desk of Jim Eccleston at Eccleston Law LLC:

Morgan Stanley has sued one of its former advisers, Steven Glazer of Deerfield, Illinois in federal court, alleging that he misappropriated confidential client information with the intent to use it after he resigned from the firm. In Morgan Stanley’s complaint, it alleges that Glazer breached his employment contract, misappropriated trade secrets, breached his duty of loyalty, and violated a non-solicitation agreement.

Prior to his departure, Glazer had been employed at Morgan Stanley’s office in Deerfield, Illinois for six years. According to Morgan Stanley, Glazer is currently employed at a firm called, The Asset Management Group, located in Northbrook, Illinois.

According to Morgan Stanley, after Glazer resigned, but before the access to his Morgan Stanley email was terminated, Glazer allegedly sent a list of 100 clients to his personal Gmail account. The client list also included the clients’ account numbers and asset information. In addition, Morgan Stanley also discovered while searching his office after his departure, that Glazer seized paper copies of his original client folders.

In its lawsuit, Morgan Stanley asserted that Glazer signed a Financial Advisor Employment Agreement, which specifically prohibits using confidential client information for any purpose other than conducting business at Morgan Stanley.

Morgan Stanley also pointed to a non-solicitation covenant in the agreement which prohibits a former employee from doing business with any Morgan Stanley client he or she serviced, one year after his or her departure form the firm.

In addition to the four counts in the complaint, Morgan Stanley requested a temporary restraining order (TRO) and a preliminary injunction.

This case underscores the need for advisors to retain competent securities counsel to plan a successful transition. The attorneys at Eccleston Law assist reps transition, negotiate their transition agreements, and defend reps when firms file suit.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.