Wells Fargo accused a Florida lawyer and former in-house counsel for the agency with serving to a bunch of Wells Fargo Advisors monetary advisors with greater than $1.2 billion in collective belongings underneath administration depart the agency and begin their very own impartial observe, the place he now works.
Wells Fargo filed a go well with in Ohio federal courtroom towards Steven Satter for his alleged position in serving to the advisors depart a Kenwood, Ohio department of the wirehouse. In accordance with Wells Fargo, the advisors left the agency to ascertain DayMark Wealth Companions, which was fashioned in March of this 12 months and situated just a few miles from Wells Fargo Advisors’ (WFA) Kenwood workplace.
“Wells Fargo seeks damages for hurt attributable to a former worker who has used the privileged and confidential info he gained as an organization lawyer to advise a competing agency in violation of his agreements, moral obligations, and firm coverage,” a Wells Fargo Advisors spokesperson stated in regards to the go well with. “As an worker, he supplied authorized counsel on behalf of Wells Fargo Advisors (WFA) to the identical group of advisors he now advises in competing with WFA.”
DayMark Wealth Companions is affiliated with Dynasty Monetary Companions, and runs on the Dynasty platform.
Satter had been with Wells Fargo since 2008, and “was accountable for employment and litigation issues” in a area together with the Kenwood workplace. In accordance with WFA, Satter’s “sole operate” on the agency was to advise it on hiring practices, fiduciary obligation claims and non-solicitation and contractual obligations.
In April of this 12 months, Satter reportedly advised Wells Fargo he was “retiring,” however as a substitute labored to assist create DayMark, in accordance with the grievance. Satter is among the group’s founding companions and its authorized counsel, in accordance with an announcement of the RIA’s launch.
Wells Fargo believed the plot to depart the agency and located DayMark started in summer season 2021, with the group of advisors planning to solicit different WFA workers and purchasers to depart with them, together with Michael Quin, a market supervisor for WFA’s Ohio area who had a “longstanding shut relationship” with Satter.
As soon as Satter came upon in regards to the plans of Quin and the others, he didn’t report them to Wells Fargo, and commenced utilizing the data he gained at WFA to supply employment and litigation counsel to the DayMark workers, serving to the advisors to plan their departures from Wells Fargo.
A “DayMark” area identify and web site had been created the identical day Satter introduced his plans to retire, in accordance with the go well with. The seven advisors collectively resigned from Wells Fargo on June 6 and commenced instantly working at DayMark.
“Mr. Satter was in a singular place to make the most of his expertise and inside data of delicate WFA info – which he gained as WFA’s senior counsel – for the advantage of DayMark and the previous workers,” the go well with learn.
Wells Fargo argued it had opened FINRA arbitration proceedings towards the departed advisors, and stated it was “inevitable” that Satter would disclose Wells Fargo “commerce secrets and techniques, privileged, and confidential info” when providing recommendation to DayMark’s new enterprise.
Satter didn’t return a request for remark as of press time.
Wells Fargo is searching for an injunction for Satter in utilizing any confidential info gleaned from the wirehouse, in addition to compensatory and punitive damages.
