Wintrust, broker to pay $1.5 million for raiding BMO Harris customers: Finra

Wintrust Wealth Management and broker Neil Moscicki must pay about $1.5 million in damages to BMO Harris Financial Advisors Inc. for seeking to grab a large portion of the firm's clients before Mr. Moscicki quit, according to the Financial Industry Regulatory Authority Inc. Wayne Hummer Investments, which does business as Wintrust, and Mr. Moscicki owe $1.025 million in compensatory damages plus $512,500 in punitive damages, according to a Finra arbitration award document this week. BMO claimed unfair competition and raiding as well as tortious interference with contracts it had with customers. Mr. Moscicki began contacting all the customers he served at BMO before resigning in July 2015 to join Wintrust, according to Finra. His new employer offered him a substantial forgivable loan in exchange for transferring the clients, and by November, Mr. Moscicki solicited a large amount of assets over to Wintrust. Mr. Moscicki, who works in Roselle, Ill., didn't immediately return a phone call seeking comment about the arbitration outcome. Nor did Thomas Zidar, Wintrust's chairman and chief executive in Chicago.