Fidelity asks Arizona court for injunction against two brokers

Fidelity Brokerage Services has asked an Arizona court for an injunction against two former brokers whom they have charged with taking proprietary customer information to start their own business. According to the Fidelity complaint, former reps Chad Sewell and Felipe Medina, who worked at the firm's Chandler Investment Center, used "Fidelity's confidential and trade secret information that they had access to by virtue of their employment with Fidelity, to unlawfully solicit Fidelity customers to transfer their business to their new competing firm located just one-tenth of a mile from the Fidelity office where they were employed." Fidelity said that it is required by the Financial Industry Regulatory Authority Inc. to seek injunctive relief before it goes ahead with its planned Finra arbitration. The firm said it will seek an expedited arbitration once the court injunction is granted. At the heart of the matter is the timing of when the two reps actually left Fidelity to open a local office of IHT Wealth Management. Fidelity said they gave notice of their departure on June 4, saying their resignations would become effective June 18. Fidelity told them they didn't have to come to the office during their two-week notice period, but reminded them that they remained employees. Fidelity said that the two opened their office, added their profiles to the IHT website and informed LinkedIn members of their move during that two-week period.