Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • Lady JusticeRBC Team Seeks Tit-for-Tat Solicitation Halt Against Morgan Stanley
          • Morgan StanleyMorgan Stanley Q4 Wealth Revenue Up 24%, Profit Down 4%
          • Morgan StanleyMorgan Stanley Traders Drive Earnings Surge for Best Year
          • Merrill Lynch Exterior Sign and LogoMerrill Touts Success of Growth Strategy in Pandemic-Afflicted Year
        • Close
      • Advisor Moves
          • Boca Raton, FloridaRockefeller Lures Two Florida Teams with $9.8 Mln Revenue
          • Morgan Stanley, UBS Advisor movesMorgan Stanley Rehires $3.3-Mln UBS Team in North Carolina
          • Lars Olson of Sanctuary Wealth Partners in Marion, OHSanctuary Hires $435-Mln Merrill Team, Snowden Lures Another from Retirement
          • Stifel Investment CompanyStifel Hires 33-Year Brokerage Vet from Jefferies in Dallas
        • Close
      • Enforcement
          • Businessman in prison, fraudWells Fargo Claws Back $3 Million from Jailed Ex-Broker
          • Finra signFinra Fines, Supends Ex-Ameriprise Broker Who Flipped ‘A’ Shares
          • Barred from the securities industry.SEC Puts Nail in Ex-Morgan Stanley Broker’s Career Coffin
          • FINRAFinra Fines LPL $6.5 Million over Broad Supervisory Failures
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
        • Close
      • Fintech News
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
          • EtheriumJay Z, Charles Schwab-Backed Ethereum App Opens Doors to Public
        • Close
      • From the Publisher
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
          • Stratos_Jeff pic.jpg-772×485Coronacrash Update: Stratos Wealth Partners’ Jeff Concepcion & Tony Sirianni
          • coronacrash ben harrison – 772×485Coronacrash Update: BNY Mellon | Pershing’s Ben Harrison & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Asset Manager Hub
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Virtual Summit
close X
January 13, 2021

Morgan Stanley Sues $6 Million Team at RBC over Client Calls

by Mason Braswell
|
News
|
Morgan Stanley, RBC
|
Broker Protocol, Employment Law, New Jersey, TRO
|
Comments (5)
Share This
SUBMIT A TIP
Team led by wirehouse veteran Wade Martin (seated, right) left Morgan Stanley in Princeton, NJ, for RBC.
Morgan Stanley is seeking a TRO against four advisors on an RBC team that includes (top, left to right) Leah Zikoski, Maria Gaspari, Brett Scharf, Brianna Clater, Zach Martin, Noah Wiegand, Allison DeLay, and (seated) Arthur Martin and Wade Martin.

Morgan Stanley Wealth Management on Wednesday revived its pursuit of big teams it accuses of illegally calling former clients, suing a $6-million team of New Jersey advisors who joined RBC Wealth Management in early October.

Wade Martin, Arthur Martin, Zachary Martin and Brett Scharf ignored numerous demand letters asking for return of confidential client information and of proprietary presentations, requiring Morgan Stanley to seek a preliminary injunction and/or temporary order restraining the advisors from continuing their “rampant” client solicitations pending the outcome of a FINRA arbitration hearing, according to a complaint filed in U.S. District Court in New Jersey.

A spokeswoman for Morgan Stanley declined to comment on whether the suit represents a return to a more zealous enforcement of non-solicitation and trade secret clauses in broker employment contracts or reflects what it considers egregious contractual violations particular to the team. The wirehouse brought more than a dozen legal cases in the months following its late 2017 withdrawal from the Protocol for Broker Recruiting, but has eased litigation in the last year as it re-upped its recruiting from other firms.

The complaint and attached filings say Arthur Martin and his son Wade were allowed to retain contact information on clients serviced before they left UBS to join Morgan Stanley in 2010, but appeared to also take confidential financial information and may have violated privacy laws by sharing it with nonregistered third parties. The team includes five associates of the advisors.

The lawsuit also asserts that Wade Martin emailed to himself eight days before the team’s mass resignation a confidential document on structured legal settlements entitled “Chubb Presentation.”

In a more common assertion, Morgan Stanley said the team appears to have taken contact information on clients that it was not entitled to as a result of the firm’s exit from the Protocol. It cites overnight mail sent to “many and perhaps most” of the team’s more than 300 client relationships on the “same day they resigned.”

It is unlikely the contact information came from publicly-available sources, the complaint said.

The Martin team, which managed over $600 million in client assets at Morgan Stanley, had transitioned over $200 million to RBC as of this week, according to the lawsuit. The team includes five client associates.

“Morgan Stanley will take appropriate legal action to enforce its rights and protect our clients’ information,” a company spokeswoman said in an emailed statement.

A spokesperson for RBC did not immediately return a request for comment.

“Defendants continue to violate flagrantly their legal commitments, leaving Morgan Stanley with no choice but to seek assistance from this court,” lawyers at Kraemer Burns in Springfield New Jersey and at Coss & Momjian in Bala Cynwyd, PA, wrote in the complaint.  The lawsuit accused the brokers of breaches of contract and of their duty of loyalty, along with unfair competition.

Arthur Martin, now a senior financial associate, began his brokerage in 1974 at UBS and its predecessor PaineWebber, according to his BrokerCheck history. Wade started almost 33 years ago at UBS, and Zach, his son, joined Morgan Stanley when he first registered as a securities salesperson in 2019. Scharf began his brokerage career seven years ago at UBS.

None of the advisors have disclosure marks on their BrokerCheck records.

If a judge issues a TRO or preliminary injunction, the case would be heard on an expedited basis by arbitrators within two weeks. If the request is denied, hearings would not typically be scheduled for nine to 12 months, according to the complaint.

Morgan Stanley was on the receiving end of a temporary restraining order a judge granted last month against a $14 million team in Boca Raton, Fl, that joined UBS.

 

Like this article? Let AdvisorHub come to you!  Sign up

Share This
Comments (5)
  • on Jan 13 2021, R says:

    And that is why I can’t stand the wires; they all play the game but claim confidential client information after you leave. I left under a protocol firm and had zero issues–do right and play by the rules. Such hypocrosy. Maybe they should run their firms as if the client is YOURS, that way you might be treated better. DOn’t let this scare you away from leaving a firm.

    > Reply to R
  • on Jan 13 2021, Hazel Baxter says:

    Great team, and well respected

    > Reply to Hazel Baxter
  • on Jan 14 2021, ToddB says:

    Just proves the clients care more about their advisor than the firm the advisor works for. MS is being hilarious with this. How can you be a manager for any of these firms and take yourself seriously during these things. What a joke.

    > Reply to ToddB
  • on Jan 14 2021, George Boy says:

    That’s one of the worst Photo-shopped team photos I’ve ever seen.

    > Reply to George Boy
  • on Jan 14 2021, Current Jones says:

    It is true the veteran force is not happy with the messaging and direction of management and Penny. Aside from the kool aid guzzlers, the smart and open minded successful FAs are scratching their heads…..not that it means they want to leave…they want them to listen to us to make it a better experience for our clients and our business.

    > Reply to Current Jones

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Jan 19, 2021
  • Raymond James Slashes CEO Pay 17% in Turbulent Year

    Raymond James Slashes CEO Pay 17% in Turbulent Year

    Jan 8, 2021
  • Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Jan 5, 2021
  • J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    Dec 4, 2020
  • Edward Jones Broker Count Up 5%, Firm Pauses Branch Growth

    Edward Jones Broker Count Up 5%, Firm Pauses Branch Growth

    Nov 5, 2020

NEWS

  • RBC Team Seeks Tit-for-Tat Solicitation Halt Against Morgan Stanley

    RBC Team Seeks Tit-for-Tat Solicitation Halt Against Morgan Stanley

    Jan 20, 2021
  • Morgan Stanley Q4 Wealth Revenue Up 24%, Profit Down 4%

    Morgan Stanley Q4 Wealth Revenue Up 24%, Profit Down 4%

    Jan 20, 2021
  • Morgan Stanley Traders Drive Earnings Surge for Best Year

    Morgan Stanley Traders Drive Earnings Surge for Best Year

    Jan 20, 2021
  • Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Jan 19, 2021
  • UBS Wealth Warns Clients Crypto Prices Can Actually Go to Zero

    UBS Wealth Warns Clients Crypto Prices Can Actually Go to Zero

    Jan 19, 2021

FINANCIAL INDUSTRY PODCASTS

AllIndependenceSuccess
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Michael Kitces and Carl Richards discuss financial advising topics.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Equipping independent financial advisors with the tips, insights, and knowledge needed to evolve in every aspect of his or her life
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
In this podcast business owners, entrepreneurs and executives reveal their top tips for success.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US

PO Box 253
Middleburg, VA 20118

311 W. 43rd St.,
12th Floor
New York, NY 10036

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top