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J.P. Morgan, Schwab Pursue Claims Against Departed Advisors

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Friday, November 8, 2019.

Another week, and two more temporary restraining orders have been sought against advisors departing J.P. Morgan Securities and Charles Schwab.  On Tuesday, a Florida judge issued a TRO barring transitioning financial advisor Justin Barroso from contacting clients after joining a UBS Wealth Management office in Fort Lauderdale, Florida.  J.P. Morgan alleged Barroso, who reportedly managed $184 million in client assets at J.P. Morgan, aggressively solicited “at least 8” clients after joining UBS in alleged violation of her J.P. Morgan employment agreements.

In yet another case in Louisiana, Schwab sued its ex-advisor Alfredo Martinez, claiming he improperly solicited certain of Schwab’s high-net-worth clients with whom he previously worked at the firm.  Martinez, who recently joined LPL’s Gulf Coast Wealth Management group, reportedly reached a fast settlement with Schwab, wherein he denied wrongdoing but agreed not to continue soliciting Schwab clients. 

These recent TRO proceedings further highlight the importance of seeking the advice of counsel before making a transition.  Shustak Reynolds & Partners has extensive experience in representing brokers and financial advisors in transition matters, as well as recruitment, employment and wrongful termination disputes, promissory note claims, and FINRA arbitrations and regulatory proceedings.  Contact us today for a complimentary consultation. 

Shustak Reynolds & Partners, P.C. focuses its practice on securities and financial services law and complex business disputes. 
We represent many broker-dealers, registered representatives, investment advisors, investors and businesses. 
Partner George C. Miller can be reached in the firm’s San Diego office at (619) 696-9500. 

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