Edward Jones loses round in court against former broker who defected to Ameriprise

Edward Jones loses round in court against former broker who defected to Ameriprise
Jones has seen $18 million of client assets move to a rival brokerage firm.
JUN 14, 2019

Edward D. Jones & Co. on Thursday suffered a setback in its fight to recoup client assets from a former broker who bolted to rival Amerprise Financial Services earlier this year. A state judge denied Jones' request for a temporary restraining order against James P. Farrell, an eight-year veteran of the firm before he left in March for a job in Ameriprise's office in Paramus, N.J. At the same time it filed a complaint in State Superior Court in April, Jones filed a complaint against Mr. Farrell with the arbitration arm of the Financial Industry Regulatory Authority Inc., which oversees such industry disputes. In its court complaint, Jones alleged a number of charges, including: breach of contract, misappropriation of trade secrets, breach of fiduciary duty and other charges typical in such trade fights over clients when a broker leaves one employer for another. The broker took Jones' confidential and proprietary client records and information, according to the complaint, and also made phone calls and visits to clients to solicit them to open accounts at his new firm. The firm had lost at least $18 million in client assets since Mr. Farrell resigned, according to the complaint. Mr. Farrell's attorney, James Heavey, later replied in a court memo that, Jones' allegations had no basis in fact. "Although Edward Jones seeks the extraordinary relief of an injunction and temporary restraints to stop Mr. Farrell from conducting business at his new firm, Edward Jones has not submitted a shred of credible evidence to this court to support its allegations of misappropriation and solicitation," he state in the memo. On Thursday, Judge Edward A. Jerejian denied and dismissed Jones' request for a temporary restraining order. "We believe the judge came to the right conclusion, and we're pleased that he once again sided with the adviser," said Ameriprise spokeswoman Kathleen McClung. A spokesman for Edward Jones, John Boul, said the firm would continue to pursue the matter in Finra arbitration.

Latest News

Treasury hits BofA with $1.2B fine over money laundering violations
Treasury hits BofA with $1.2B fine over money laundering violations

“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” said Treasury Secretary Scott Bessent.

The hidden cost of growing a firm without intention
The hidden cost of growing a firm without intention

To build a truly self-sustaining practice, enterprising advisors have to start with a vision of what they want to be – and accept the realities that come with building toward it.

Waverly, Apella buy $412M in RIA assets across Oregon, Northeast
Waverly, Apella buy $412M in RIA assets across Oregon, Northeast

Serial acquirers add a 35-year-old Oregon wealth manager and a New York practice focused on women navigating life transitions.

&Partners taps two UBS leaders to run its private wealth business
&Partners taps two UBS leaders to run its private wealth business

Mara Glassel and Julie Fox will co-lead the fast-growing hybrid RIA’s ultra-high-net-worth and private wealth businesses.

Citi sees Q3 profit jump as wealth unit books record $38B in net new assets
Citi sees Q3 profit jump as wealth unit books record $38B in net new assets

The banking giant's wealth arm extends its revenue streak as it pushes to exit consent orders weighing on growth since 2020.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor