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.

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