Morgan Stanley Team Concedes to Injunction After Leaving UBS

Posted on May 18th, 2021 at 1:29 PM
Morgan Stanley Team Concedes to Injunction After Leaving UBS

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to court filings, a New York-based Morgan Stanley team has agreed to a customer solicitation ban after leaving UBS Wealth Management in April. The preliminary injunction was filed in a New York state court in Nassau County on May 11. 

The injunction alleges that two advisors, Louis Croce and Robert Anders, solicited several clients prior to their resignation and collected substantial client account data. Furthermore, the injunction requires that the advisors return any customer lists they have collected or certify that they do not have any in their possession. The court order does not restrict the advisors from continuing to serve clients who previously have transferred and does not constitute any admission of guilt or wrongdoing. 

According to the UBS complaint, the team generated nearly $4 million in annual revenue, but was persuaded to join Morgan Stanley after they were offered $13 million, including $7.2 million upfront cash payments. UBS claims that the advisors left “nothing to chance” as they emailed client documents to their personal addresses, scheduled pre-resignation calls or meetings with clients and printed “massive volumes” of protected client information. Further, UBS alleges that Croce “bragged” to a client about his team’s new compensation at Morgan Stanley and “falsely told the client that UBS was not giving him” adequate sales support. 

Eccleston Law LLC represents financial advisors nationwide in securities, employment, regulatory, disciplinary matters and transitions from firm to firm, including evaluating the advice provided by former counsel.

Tags: eccleston, eccleston law, morgan stanley, ubs

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