Osaic’s latest advisor addition is drawing scrutiny after Primerica filed a multimillion-dollar lawsuit accusing the hybrid RIA of orchestrating a “corporate raid” to recruit a West Virginia branch overseeing more than $530 million in client assets.
Osaic announced Wednesday that Brian Collins, a veteran advisor based in Hurricane, West Virginia, has launched Legacy Investment Advisors & Wealth Management and affiliated with the firm.
Collins previously served clients as a representative with Primerica, where he managed approximately $540 million in assets. According to Osaic, Collins brings nearly four decades of experience focused on client education and financial literacy.
That transition, however, is at the center of a legal dispute. Primerica, a national insurance and annuities provider, filed suit in federal court in Georgia, alleging that Osaic conspired with Collins and other advisors to breach employment contracts and move confidential client information.
As reported across multiple wealth industry news outlets, the complaint claims that Collins, while still employed at Primerica, recruited other representatives to join him at Osaic, and that the group’s departure resulted in the loss of more than 96% of the the Hurricane branch’s assets under management.
Primerica’s lawsuit describes Osaic’s recruiting practices as systemic, alleging the firm uses “large cash bounty payments” labeled as forgivable loans to entice advisors to break contracts and bring over client relationships.
“Osaic’s business is built on engaging in raids under cover of darkness – and then using the representatives that it acquires to violate their contracts and legal duties to steal business for the benefit of Osaic,” the complaint states, with Primerica seeking $50 million in compensatory and punitive damages.
Osaic, for its part, is pushing back strongly against the allegations.
“Osaic firmly disagrees with the characterization of the conduct alleged by Primerica and believe this suit to be without merit,” a spokesperson for the firm said. “The advisors who chose to affiliate with Osaic have taken intentional steps to fully honor their contractual obligations including refraining from client solicitation and preserving any Primerica materials for retrieval.”
The suit also names Legacy Investment Advisors & Wealth Management as a co-defendant, describing the new firm as a vehicle to facilitate the transfer of clients and assets. Primerica is seeking both damages and an injunction to prevent further solicitation of its clients.
In its announcement, Osaic emphasized Collins’ focus on client education and community service. “Brian’s dedication to client education and community service perfectly reflects Osaic’s mission to empower advisors to enhance lives and legacies,” said Kristen Kimmell, executive vice president of business development at Osaic.
Collins said the most rewarding part of his career has been “helping families understand their options and to help them feel confident about their financial future.”
The conflict between Osaic and Primerica comes mere weeks after Merrill Lynch sought to file a TRO against a breakaway advisor group who launched their own RIA firm. That action – accusing the defectors at OpenArc as well as their firm's new custodian, Charles Schwab, and their support platform Dynasty Financial Partners of colluding in a "premeditated corporate raid" – was summarily denied in a Georgia federal court, but the wirehouse has said it would bring the dispute to FINRA.
"[The] court decision is a watershed moment for the wealth management industry. It acknowledges the strength and sophistication of the independent movement," Dynasty CEO Shirl Penney said in a statement at the time.
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