Russomanno’s relationship with Morgan Stanley goes back to 1985. His BrokerCheck page says he was with the firm until 2019.
The complaint said that Gibbs and Hutchinson sent letters denying that they took proprietary information belonging to Morgan Stanley, but the firm claims they did not specifically deny retaining contact information.
Attorneys said that these cases generally turn on whether an advisor was merely announcing a departure or asking for information from a client that could be construed as pushing them to take action. In that case, it could look like solicitation.
Gibbs and Hutchinson are both now working with LPL affiliate River’s Edge Wealth Partners in Red Bank, N.J. A representative at the firm said both declined to comment on the Morgan Stanley filing. LPL had not returned a call by press time.
A Morgan Stanley spokesperson said in an email to Financial Advisor, “Morgan Stanley will take appropriate action to ensure that departing employees comply with their legal obligations.”
LPL has announced a number of hirings from Morgan Stanley just in the past month. In late April, Brett Goodman was tapped from the firm to lead LPL Financial’s corporate development and investor relations teams. Also in April, LPL tapped Morgan Stanley’s Chad Keeler and Brock Rouch, who previously managed $380 million, to join LPL Strategic Wealth Services. Iowa-based Lisa Tesar joined Linsco; at Morgan Stanley, she served $260 million, LPL said.
In January, father and daughter advisors John and Jennifer Tarantino joined LPL from Morgan Stanley, where they managed $250 million in advisory, brokerage and retirement plan assets. Their new firm is called Gladstone Wealth Partners and is based in Florham Park, N.J.