Ameriprise Says LPL Urged Advisor to Improperly Lure Clients

Kenoyer claimed protections from the Protocol for Broker Recruiting but had already violated it by pre-soliciting clients and taking confidential documents and information, the suit contends, saying the advisor violated his agreements with Ameriprise.

In June 2022, Kenoyer acquired the ability to service the entire book of an Ameriprise advisor who was retiring; this allowed him to service 1,031 new clients with nearly $134 million in assets under management, the complaint contends.

Upon his resignation from Ameriprise, Kenoyer serviced 583 clients and over $144 million in AUM, “meaning the vast majority of his book of business was acquired via and is restricted by this internal client transfer,” the suit alleges.

In addition to trade secrets misappropriation and unfair competition, the complaint accuses Kenoyer and LPL of unjust enrichment, conversion and interference with business relationships, and Kenoyer of breaches contract and fiduciary duty.

LPL had no comment on the case, a representative told ThinkAdvisor by email Tuesday. Kenoyer didn’t immediately respond to an email seeking comment.

In a separate lawsuit filed in June in U.S. District Court in Michigan, Ameriprise sought a temporary restraining order against LPL, Mitchell McCann and his son Wesley McCann pending a FINRA arbitration.