Schwab Accuses Former Adviser of Soliciting a Client

Posted on September 10th, 2019 at 1:52 PM
Schwab Accuses Former Adviser of Soliciting a Client

From the Desk of Jim Eccleston at Eccleston Law LLC:

Adviser John VanEngelenhoven left his employer, Charles Schwab, to open an RIA that custodies with TD Ameritrade Institutional. Now he faces a FINRA arbitration and preliminary injunction as Schwab accuses him of soliciting at least one of the company’s clients. VanEngelenhoven is among several ex-Schwab advisors who have been taken to court this year over client solicitation. 

According to the complaint, the advisor solicited at least one client when he called him and told him about the new firm. The San Francisco-based brokerage and custodian is now seeking a preliminary injunction, asserting that VanEngelenhoven breached his contract and misappropriated trade secrets, according to the complaint.

According to FINRA BrokerCheck, VanEngelenhoven departed Schwab in September after a 14-year career there. A few months later, he opened his own firm, Verity Financial, in Austin, Texas. The RIA was officially registered with the SEC and custodies with TD Ameritrade. It currently reports no assets under management.

Schwab spokesman Pete Greenley stated that Schwab “expects that its representatives will comply with their contractual and legal obligations concerning customer information,” and that, if necessary, the company will not hesitate to enforce the obligations in court or an arbitration proceeding.

This matter is yet another example that transitioning advisors require competent, conflict-free legal assistance in considering and planning a transition to a new firm.

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 investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, 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: james eccleston, eccleston law, eccleston law llc, eccleston, charles schwab, John VanEngelenhoven, finra arbitration, ria, solicitation

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.

August 10, 2022
UBS Wealth Group’s Legal Costs Skyrocket in Q2

UBS Wealth’s litigation expenses have substantially spiked in the second quarter as the firm has faced a host of investor complaints and regulatory probes into UBS’ volatile Yield Enhancement Strategy (YES).

August 9, 2022
UBS Wealth Relying on Lending as Client Assets Dip

UBS Wealth Management is relying on loan growth and increasing interest rates amidst a quarter that the company has categorized as “one of the most challenging periods for investors in the last 10 years”, according to UBS CEO Ralph Hamers.