UBS Advisor, Sued By Morgan Stanley, Agrees to Customer Solicitation Ban

Posted on July 29th, 2021 at 2:18 PM
UBS Advisor, Sued By Morgan Stanley, Agrees to Customer Solicitation Ban

From the Desk of Jim Eccleston at Eccleston Law:

A UBS advisor, Michael Crotty, has agreed to an order preventing him from soliciting former clients at Morgan Stanley, according to a preliminary injunction filed in New Jersey federal court. The matter now proceeds to a Financial Industry Regulatory Authority (FINRA) arbitration hearing to determine whether or not there will be a permanent injunction and and award of monetary damages. 

Crotty produced $2.75 million in annual revenue and managed $540 million in client assets. According to Morgan Stanley, Crotty violated the one-year non-solicitation ban detailed in joint production agreements. Morgan Stanley further alleges that Crotty pre-solicited at least four clients to join him at UBS, which included Crotty’s largest client. The order also compels Crotty to return any of Morgan Stanley’s confidential information, such as account numbers, account information, investment history and management fees.

According to the TRO / court order, Crotty still is allowed to process in-bound account transfer requests, serve those who have previously transferred accounts and solicit family members. While Crotty primarily operates out of Boulder, Crotty also uses UBS’s office in Manasquan, New Jersey. 

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

 

Tags: eccleston, ubs, morgan stanley, finra

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