LPL Monetary has recruited a bank-based advisor who managed $725 million at JPMorgan Chase & Co., in accordance with an announcement on Thursday, someday after the financial institution sued the advisor over allegations that he improperly solicited prospects.
Alan C. Feutz, who relies in Deerfield, Illinois, joined Genesis Wealth, a apply affiliated with LPL, on June 18, in accordance with his BrokerCheck and LPL’s announcement. The transfer seems to have become one other more and more routine authorized battle that brokers face when leaving JPMorgan’s financial institution channel.
In its criticism filed on Wednesday in federal courtroom within the Northern District of Illinois, JPMorgan alleged that Feutz retained confidential shopper contact data and used it to encourage shoppers to maneuver property to LPL in violation of non-solicitation agreements.
The financial institution alleged that he known as former shoppers on their private cell telephones and advised at the very least one buyer that LPL has “much more funding selections” than JPMorgan, in accordance with the criticism, which was filed by JPMorgan’s broker-dealer, J.P. Morgan Securities.
One other shopper allegedly mentioned Feutz advised her that her charges would keep the identical if she moved her accounts to him, in accordance with JPMorgan, which additionally claimed that shoppers with at the very least $146 million have transferred their accounts to him at LPL.
JPMorgan is searching for the TRO together with a parallel declare in Monetary Trade Regulatory Authority arbitration for damages.
James V. Garvey of Vedder in Chicago, who represents Feutz, mentioned the financial institution’s “allegations in opposition to Mr. Feutz are unfounded,” and that he’ll defend in opposition to them “vigorously.”
“We’re assured that he’ll prevail after a full vetting of the information earlier than a FINRA Dispute Decision arbitration panel, simply as we’ve prevailed on behalf of different shoppers who’ve needed to endure JPMS’ anticompetitive conduct by bringing claims of this sort,” Garvey added.
JPMorgan has pursued dozens of defecting bank-based brokers in current months, and in June it persuaded a New York state courtroom to concern a short lived restraining order barring two brokers from soliciting agency shoppers.
A spokesperson for LPL didn’t reply to a request for remark.
In Thursday’s announcement, Feutz touted the “scale and operational power” of LPL.
“Coming from a financial institution setting, the security and safety of shopper property had been extraordinarily essential issues,” Feutz mentioned.
Feutz began his profession with Dean Witter Reynolds in 1999 and labored at three different companies earlier than transferring to JPMorgan’s Chase Funding Providers Corp. in 2005, in accordance with BrokerCheck.
His BrokerCheck report contains one settled buyer dispute. In 2022, a buyer alleged {that a} deferred gross sales cost on a mutual fund was not disclosed. JPMorgan settled it for the almost $41,000 requested and didn’t ask Feutz to contribute, in accordance with BrokerCheck.