Adviser must pay former employer $358,000 for violating employment contract

Adviser must pay former employer $358,000 for violating employment contract
Arbitrator ruled that adviser was supposed to pay a fee for every former client he solicited.
SEP 10, 2019
An adviser who left an LPL Finanical affiliate to set up his own firm with Commonwealth Financial must pay his old employer $358,000, according to an arbitration award. After 18 years of employment, Jeremy Bok left Planned Financial Services of Cleveland, the LPL affiliate, in January 2018 and set up his own firm, Saorsa Wealth Management of Avon, Ohio. Planned Financial Services sued Mr. Bok, claiming that under the terms of his employment contract, he had to pay a fee to his old employer for every client he solicited. Mr. Bok solicited the firm's clients, but failed to pay the fee, and the arbitrator for the American Arbitration Association who heard the case said that constituted a breach of contract. Mr. Bok did not respond to a request for comment. Planned Financial Services originally sued for $3.2 million in damages, but the arbitrator reduced that to $260,535. The balance of the award includes $54,102 in attorney fees and $31,263 in interest.

Latest News

A year after sale, Commonwealth Financial and LPL start cutting staff
A year after sale, Commonwealth Financial and LPL start cutting staff

Commonwealth Financial joins a number of firm that have recently cut jobs.

Pension funds sue Primoris, allege it hid solar cost overruns from investors
Pension funds sue Primoris, allege it hid solar cost overruns from investors

A slow drip of disclosures, an executive exit, and a stock that fell hard before the suit landed

Unpaid caregivers face steeper financial hurdles on path to retirement, EBRI finds
Unpaid caregivers face steeper financial hurdles on path to retirement, EBRI finds

New research finds unpaid caregivers are more likely to struggle with debt, lower savings and diminished retirement confidence than non-caregivers.

Volatility: Best and worst of times
Volatility: Best and worst of times

Large broker-dealers and registered investment advisors have, since 2020, been developing or sticking to strategies and tactics to combat the pain of intense, short-term market volatility

Want to win in the advisor wars? Then make sure you’re offering plenty of choices
Want to win in the advisor wars? Then make sure you’re offering plenty of choices

Centaurus Financial touts its independence as a key selling point at a time when many firms are being swallowed up.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income