Grillo said in his suit that he was given a total of $3,500 for marketing activities during his two years with the firm and prohibited from marketing to independent advisers. Instead, he said, he was told Lebenthal would buy a firm that had a stable of independent advisers.
“Lebenthal’s attempts to purchase another firm, however, were unsuccessful and Lebenthal Wealth Advisors was allowed to languish and fail,” Grillo said in his complaint.
Division Closed
Grillo’s arbitration suit was made public when the firm sued Grillo in New York state court in August, alleging his employment agreement stipulated that he litigate any claims in court, not arbitration. Grillo declined to comment through his attorney.
A team of advisers managing more than $750 million in client assets left Lebenthal Wealth Advisors in June. Two months later, the firm closed the division. At its peak, the wealth unit had five teams of advisers and about $950 million in assets under management, Lebenthal said in interviews in August.
Cayne, 83, said in his lawsuit that the $1 million loan was a personal one, not to the company. After his attorney demanded full repayment in December, Lebenthal’s personal lawyer told him she didn’t intend to pay the outstanding balance, the complaint said.
This article was provided by Bloomberg News.