Morgan Stanley Sues Indiana Broker for Contacting Former Clients

Posted on January 22nd, 2018 at 3:40 PM
Morgan Stanley Sues Indiana Broker for Contacting Former Clients

From the Desk of Jim Eccleston at Eccleston Law LLC:

Morgan Stanley has sued its former broker, Nathan Rumley, of Mishawaka, Indiana in federal court to restrain him from contacting his former customers. The federal lawsuit is yet another attempt by Morgan Stanley to file a temporary restraining order (TRO) against a former broker after the firm withdrew from the Protocol for Broker Recruiting late last year.

According to Morgan Stanley’s complaint, Mr. Rumley allegedly breached his initial employment contract (signed in 2001 as a trainee), and violated separate inherited accounts and joint production agreements signed in 2013 and 2014.  Moreover, according to the complaint, the inherited account contract, called the Former Financial Advisor Program, includes a TRO and preliminary injunction provisions to enforce its one-year non-solicitation and confidentiality clauses.

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

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


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