TD Bank has filed a lawsuit against two of its former advisors for allegedly stealing company secrets and clients when they moved to Raymond James earlier this year.
The suit, filed by TD Bank and its TD Private Client Wealth subsidiary in U.S. District Court in Connecticut, accuses advisors Brett Bartkiewicz and Gregg Desmarais; Raymond James Financial Services; and the Raymond James-affiliated firm they joined, Crescent Point Private Wealth of Glastonbury, Conn., with breaking nonsolicitation agreements and enticing away clients with more than $22 million in managed assets.
Both advisors started with TD Private Client Wealth in 2016 and moved to Raymond James this year, according to Finra’s Broker Check. Bartkiewicz is a 28-year veteran of the industry, while Desmarais started his career at TD. Earlier this month, they opened Crescent Point’s satellite office in Avon, Conn., according to the company’s website.
The lawsuit accuses them of luring TD clients to their new firm shortly after their departure in late April and “brazenly” offering “significantly reduced rates to attract them.” The complaint alleges an enticement of a 15% reduction in fees in at least one case, estimating that 12 clients or more jumped from TD to Raymond James as a result—costing the bank more than $22 million in client assets.
TD claims both advisors had signed agreements with TD Bank when they joined, promising to maintain confidentiality and protect the company’s trade secrets. This included refraining from contacting or soliciting clients for 12 months after separating from the bank, the legal documents stated.
The lawsuit accuses the advisors of breach of contract, tortious interference with that contract, and violation of Connecticut’s Unfair Trade Practices Act. Raymond James and Crescent Point are both accused of aiding and abetting the advisors in these acts.
TD is asking the court to prevent the advisors from continuing to work with the allegedly poached clients. They also request recoupment of “all gains received … in connection with” their activity with these clients since their April departure from TD Bank, as well as unspecified compensatory and punitive damages.
TD Bank’s attorneys, both advisors, and Raymond James did not immediately respond to requests for comment.