A former Raymond James advisor was ordered by an arbitration panel to pay $2.6 million to the father-son team she sold her practice to after she was accused of violating the purchase agreement and trying to poach old accounts after the deal turned acrimonious.
A Financial Industry Regulatory Authority arbitration panel last week ruled that Nicole Sennett is liable for $2,557,000 in compensatory damages to Scott A. Brantingson, and his son, Scott M. Brantingson, as well as to the firm they founded, Monocacy Wealth Partners. The Monocacy duo are based in Bethlehem, Pa.
In the statement of claim, filed in June 2023, the Brantingsons and Monocracy accused Sennett of breach of contract, misrepresentation, defamation and tortious interference with contract, misappropriation of trade secrets, among other things.
Besides unspecified damages and disgorgement of revenue received from poached accounts, and interest and fees, they asked to be cleared of owing Sennett money or anything else related to the purchase agreement and related agreements. They also sought a declaratory judgment that Raymond James Financial Services Inc. should pay them all monies withheld relating to the accounts at issue. Monocacy is affiliated with Raymond James.
They had further sought permanent injunction against Sennett for violating the agreement and an order that she turn over and delete copies of business and customers’ information in her possession.
Sennett, who owned Sennett & Associates Wealth Group LLC, in her counterclaim, denied breaching the purchase agreement and instead accused the Brantingsons of “materially” breaching the purchase agreement because they refused to allow her to review the books and records, which she said she was entitled to “inspect” under the agreement. She also requested that the Brantingsons continue “contingency payments” that they owe and will continue to owe her until the expiration of the agreed-upon payout date in December 2026. The award document does not specify when the firm was sold or when the payments began.
Sennett argued that such material breaches by the Brantingsons removes her from any obligations under the purchase agreement, which she said, “is now void, and the provisions contained therein are no longer enforceable by either party.” As a result, Sennett said, she was free to solicit or compete with the Brantingsons.
The three-member panel could not have been clearer in their dissent, ruling that, “Claimants owe respondent Nicole Sennett nothing.” Not only did the arbitrators award the Brantingsons $2.6 million, but they also sided with them on their requests such as barring Sennett from soliciting clients and “giving any financial advice, or recommending any financial advisor to any listed client, or accepting as a client any listed client, including when the listed client initiates the contact.”
The panel also forbade Sennett from discussing or disparaging the work of Monocacy and the Brantingson. Furthermore, she was held liable in the amount of four times 1% of any transferred client account to her after the award date. She also was solely responsible for all hearing fees, totaling $11,950.
Sennett, who has been with Alden Investment Group, a Wayne, Pa.-based independent broker-dealer, since May 2023, could not be reached for comment. According to BrokerCheck, she started her career at Merrill Lynch in 2005 and joined Raymond James in 2018. She left at the end of 2022.
The senior Brantingson declined to comment, and his attorneys Paul D. Flack and Reagan D. Pratt of Pratt & Flack LLP in Houston were not available for comment before press time.
Brantingson senior began his career in 1987 with Legg Mason. He joined A.G. Edwards & Sons Inc. in 1996, where he stayed 11 years before moving to Wells Fargo, where he spent 10 years. He joined Raymond James in 2018. The junior Brantingson started with Wells Fargo in 2012 and also joined Raymond James in 2018.