JPMorgan Says Ex-Advisor Is Trying to Poach $250M Book
JPMorgan alleges Carruthers, who worked out of East Northport, New York, engaged in “highly suspicious” computer activity during the month before he resigned, rapidly accessing “an unusually high number of client profiles.”
‘Highly Confidential’
“The client profiles accessed by Carruthers contain highly confidential client information, including client names, addresses, e-mail addresses, phone numbers, and other information needed to solicit JPMorgan clients upon his resignation,” JPMorgan said in the complaint.
The bank says Carruthers had about 369 clients with about $250 million under management at the time of his resignation, and that the “vast majority” of them were either pre-existing clients or were assigned to him by others at the bank.
JPMorgan says several of its clients informed the bank that Carruthers had reached out to them to discuss his move to Wells Fargo and suggesting they follow him there. Carruthers falsely told the clients he was required by federal law to alert them to the change, JPMorgan says.
The suit seeks a temporary injunction barring Carruthers from trying to recruit former clients until the Financial Industry Regulatory Authority issues a decision in a parallel dispute resolution process.
The suit also seeks a court order forcing Carruthers to return within 24 hours of a judge’s signature any records or documents pertaining to JPMorgan clients.
The case is JPMorgan Securities LLC v. Carruthers, Supreme Court of the State of New York (Manhattan).
(Credit: AP)
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