Silverman leaves on-the-block firm; second defection in June
Yet another star broker for Securities America Inc. has bolted the beleaguered brokerage.
Marc Silverman, whose Miami operation has more than $250 million in assets under management with at least $2.5 million in annual production of fees and commissions, joined Geneos Wealth Management Inc. yesterday. This marks the second time in June that Securities America has lost one of its leading reps. Earlier in the month, Lori Price left the B-D to join LPL Financial.
In 2009, Ms. Price was ranked among the top 1% of the firm's brokers, producing more than $1 million annually in fees and commissions. And according to Ryan Diachok, vice president of marketing and business development at Geneos, Mr. Silverman was consistently a top five or top 10 producing adviser with Securities America.
Large firms such as LPL Investment Holdings Inc. and Commonwealth Financial Network have been aggressively pursuing Securities America reps, but Mr. Silverman chose the relatively small Geneos. “He didn't want the big company, the big huge behemoth,” Mr. Diachok said. LPL is offering potential recruits a signing bonus of 20% to 40% of their previous year's fees and commissions, a very high level for independent broker-dealers.
Mr. Silverman chose the service and culture of a small firm over the big upfront check, Mr. Diachok said. “He loves the people here and the technology.”
"I was recruited by close to 40 broker-dealers," Mr. Silverman said. "Geneos attracts a higher-end caliber of rep. I did not want to be part of a 12,000 person firm," he said, referring to LPL.
Securities America spokeswoman Janine Wertheim wrote in an e-mail: “Even with the very aggressive recruiting environment, the majority of advisers are staying to see the opportunities of new ownership. We are happy to have been part of Marc's success and wish him all the best.”
Securities America has been working to hold onto its reps and advisers as its parent company, Ameriprise Financial Inc., shops the firm for a new owner. In April, Ameriprise and Securities America reached a preliminary $160 million settlement with class action investors who sued the firm over private placements investments that have gone bust. Days later, Ameriprise said the firm was for sale.
Securities America was one of dozens of independent broker-dealers that sold two series of high-yielding deals from 2003 to 2009, Medical Capital Holdings Inc. and Provident Royalties LLC. The Securities and Exchange Commission in July 2009 charged both those organizations with fraud, and many broker-dealers that sold the deals have since gone out of business due to the steep cost of litigation stemming from investor lawsuits.
