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J.P. Morgan Securities is suing a former worker after he left for Raymond James, accusing the advisor of soliciting purchasers and violating contractual agreements.
The financial institution is in search of a short lived restraining order towards Matthew D. Sitarski, who till lately labored at a financial institution department in Ann Arbor, Mich. When he left, Sitarski labored with about 250 households with roughly $132 million in managed property.
In response to the criticism filed in Michigan federal courtroom, Sitarski left J.P. Morgan on Jan. 31 and joined Raymond James later that very same day. The financial institution accused him of soliciting no less than 10 former purchasers virtually instantly. One consumer mentioned Sitarski pushed him to maneuver his account to Raymond James so the advisor might proceed working with him.
One other consumer advised the financial institution she bought a name on her cellular phone from Sitarski urging her to do the identical and meet him for an appointment, which she declined.
“The consumer additionally knowledgeable JPMorgan that Sitarski had ‘downplayed’ the expertise of the JPMorgan Non-public Shopper Advisor who had been assigned to the consumer after Sitarski resigned (who has been with JPMorgan since 2016),” the criticism learn.
However Sitarski’s allegedly had some success in luring purchasers, based on the swimsuit; about six households with property totaling roughly $3.9 million have already left for Raymond James.
Raymond James didn’t reply to requests for feedback on the criticism.
Within the submitting, attorneys for J.P. Morgan warned of the implications if the courtroom didn’t grant the TRO.
“Until (Sitarski’s) misconduct is straight away restrained and enjoined, different opponents of JPMorgan can be inspired to have interaction in the identical type of improper conduct with full impunity, the results of which can inflict extreme and everlasting damages on JPMorgan,” the criticism learn.
Sitarski joined J.P. Morgan in Nov. 2007, beginning on the financial institution aspect. He entered the securities portion of the enterprise as a monetary advisor affiliate in 2010 and have become an advisor two years later.
By the tip of his time on the financial institution, Sitarski was a non-public consumer advisor. In response to the criticism, the financial institution referred a whole bunch of its purchasers to Sitarski for him to pitch funding alternatives. The financial institution didn’t count on Sitarski to chilly name for purchasers.
Via his employment, Sitarski allegedly might entry what J.P. Morgan deemed confidential info in consumer recordsdata, together with “consumer identification, tackle, phone numbers, transactional historical past, tax info, private monetary information, banking info and funding goals.” Additionally they claimed all of Sitraski’s contacts in his advisory enterprise had been pre-existing financial institution purchasers referred or assigned to him.
J.P. Morgan additionally alleged Sitarski signed a number of non-solicitation agreements throughout his tenure, barring him from soliciting purchasers for one 12 months after his employment at J.P. Morgan ended. The contracts demanded Sitarski not use or retain the financial institution’s confidential info if he resigned.
The Sitarski swimsuit isn’t the primary time J.P. Morgan accused a former advisor of breaking their agreements. In January, J.P. Morgan sued Nader Joseph Al-Mooshi, a former financial institution department advisor who’d departed for Kestra the earlier fall. The financial institution accused him of bleeding the financial institution of $40 million in property by soliciting financial institution prospects and utilizing proprietary consumer info.
Final fall, J.P. Morgan leveled related allegations towards Daniel Sutton, a Fla.-based advisor who left the financial institution for Commonwealth.
J.P. Morgan beforehand acknowledged that financial institution department advisors like Sitarski, al-Mooshi and Sutton don’t fall below the protections of the Protocol for Dealer Recruiting, established in 2004 to supply advisors larger flexibility (and fewer authorized jeopardy) when soliciting purchasers after shifting between wealth administration corporations.
The financial institution claims these protections solely lengthen in-house to registered reps within the J.P. Morgan Advisors division with the titles “wealth advisor” or “wealth associate.”
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