Stifel continues to build presence in Western states

Stifel Nicolaus & Co. Inc. is quickly building up a presence in Western states by picking off former A.G. Edwards & Sons Inc. brokers.

The firm this month brought over three Edwards representatives to open a Phoenix office, along with two support people.

In recent months, Stifel Nicolaus, the brokerage unit of Stifel Financial Inc. of St. Louis, has also opened seven offices in California staffed with 28 brokers, all but one of whom were legacy A.G. Edwards brokers.

A.G. Edwards and Wachovia Securities LLC completed their merger in October. Now operating under the Wachovia name, the firm is based in St. Louis.

Joining Stifel this month in Phoenix were Larry Herring, Joe Hagen and Kenn Hugos, all legacy A.G. Edwards reps who resigned from Wachovia’s East Camelback Road branch in that city.

Mr. Herring will manage the new office.

The Arizona brokers each produce between $400,000 and $500,000 in annual fees and commissions, and control total assets of about $300 million, said John Lee, senior vice president and managing director at Stifel in Roseville, Calif., who heads up the firm’s West Coast recruiting efforts.

He was formerly the Pacific Coast regional director for A.G. Edwards, with responsibility for overseeing 72 branch offices. Mr. Lee jumped to Stifel in August and was given a mandate to build out offices in Western states.

‘THEY’RE CALLING US’

Prior to his arrival, Stifel didn’t have any retail offices in that region.

The firm now has four Northern California offices, located in Grass Valley, Lincoln, Roseville and Santa Rosa.

In Southern California, Stifel has opened branches in Oxnard, Pasadena and Westlake Village.

Mr. Lee downplays his role in the recruitment effort, saying dissatisfaction over the merger has caused A.G. Edwards brokers to consider a move.

“They’re calling us,” he said.

A.G. Edwards brokers said that Mr. Lee was well-regarded when he worked at A.G. Edwards. Because Stifel, also based in St. Louis, is a smaller firm, it is now a natural choice for unhappy A.G. Edwards brokers, they said.

Wachovia Securities spokeswoman Teresa Dougherty declined to comment.

Mr. Lee has picked off A.G. Edwards producers despite lawsuits filed by the company to stop the departing brokers from contacting their clients.

Last fall, A.G. Edwards sued 10 of its former California employees who left for Stifel. Mr. Lee was also sued.

The actions, filed in state and federal courts, either have been dismissed or stayed, pending arbitration hearings.

In one case last year — against Stifel’s Santa Rosa branch manager, Samuel Slayden, and three other former A.G. Edwards employees — an arbitration panel denied a re-quest for a permanent injunction.

Customers “have a paramount right to be advised of a move by their broker from one firm to an-other,” the panel said.

E-mail Dan Jamieson at [email protected].