Goldman Sachs Reports Garden Leave Violations on CRDs of Former PFM Advisors
From the desk of Jim Eccleston at Eccleston Law
Goldman Sachs has introduced further challenges for former advisors of its Personal Financial Management (PFM) unit who departed for competitors before the unit's sale to Creative Planning in November.
A review by AdvisorHub of Central Registration Depository (CRD) data from state securities regulators reveals that at least 31 former PFM advisors' licensing records include "employment separation after allegations.” According to Form U-5 notices filed by Goldman Sachs, those advisors are accused of violating the terms of their contracts by commencing employment with another firm before the expiration of their garden leave (notice) periods. The Form U-5 filings state that after the individuals voluntarily resigned, Goldman Sachs accelerated their separation due to concerns about them representing an unaffiliated financial institution before the completion of their notice periods, thereby violating contractual obligations to the firm.
According to AdvisorHub, Goldman Sachs employed various legal strategies to retain PFM advisors following the unit's sale, including blemishes on advisors' records as one such tactic. The bank marked up termination forms with allegations indicating violations of contract terms to discourage voluntary resignations. These actions were part of broader legal maneuvers, including breach of contract and non-compete claims filed in arbitration across multiple states, as revealed by a spokesperson.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters, and is particularly interested in hearing from aggrieved former Goldman Sachs advisors.
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