Tagged with "tro"

The U.S. Securities and Exchange Commission announced that it had obtained a temporary restraining order (“TRO”) against Paul Horton Smith, Sr. in an effort to halt an on-going Ponzi scheme.  The SEC said that it also froze Smith’s assets. According to the SEC, Smith was running a Ponzi scheme that targeted senior citizens in Southern California. The SEC alleged that Smith used eGate, LLC, his investment advisory firm, and Planning Services, Inc., his insurance and estate planning company, to market securities in another one of his companies, Northstar Communications, LLC.

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A federal court judge in Florida denied Regions Bank’s motion to reinstate a temporary restraining order (“TRO”) filed against the bank’s former financial advisors, Michael Montalvo and Mauricio R. Cardenas.  Regions Bank sought a TRO in an effort to restrain Montalvo and Cardenas from soliciting former clients serviced at Regions Bank.

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Following his termination from Investacorp, Ian James sued the firm alleging that the firm engaged in deceptive and unfair trade practices, among several claims. According to James, Investacorp told him that he would be terminated “for cause” unless he sold his book of business to another representative at Investacorp. If he sold his book to the advisor selected by Investacorp, he would be allowed to resign. According to James, the price that he was offered to sell his book of business as part of this deal was far below market value.

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The Financial Industry Regulatory Authority (“FINRA”) arbitration panel recently dismissed a temporary restraining order (“TRO”) against a former Edward Jones broker who initially agreed to the TRO prohibiting him from telling customers about his move to Ameriprise.

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An Indianapolis federal court has denied a motion by Edward Jones for a temporary restraining order ("TRO") against a former broker who joined a competing firm.

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A Georgia court judge has granted Morgan’s Stanley a request to prevent a runaway broker from contacting former customers. However, the court’s ruling will allow the broker to work with immediate family members and customers who already signed account transfer forms.

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A Texas judge has denied a temporary restraining order (TRO) filed by Morgan Stanley to prevent two Dallas, Texas-based investment advisers, who left the firm, from soliciting their former clients at their new firm, an independent broker-dealer.

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A Temporary Restraining Order (TRO) is an extreme remedy that financial services firms frequently employ to stop advisors from transitioning their clients to a new firm. While the TRO requires the parties in the case to maintain a certain status quo until the court can hear further evidence, the delay overwhelmingly harms the departing advisor. In many respects, the TRO fight is not the battle; instead, it is the very war itself.

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