Broker Sells His Book, then Solicits his Clients

Well, this is a new one for me. I have been representing brokers and firms in transition deals for decades and have never seen this allegation. According to an article at Advisor Hub, there is a lawsuit pending where there are claims that a broker-sold his book of business to another group, and then turned around and solicited those very same investors to work with him.

The broker denies the allegations, and as always the devil is in the details, but I would imagine that the agreements documenting the deal would prevent such a solicitation from happening…..


Broker transition questions? Starting a new advisory practice? Call Mark Astarita at 212-509-6544 for legal assistance.

Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page -, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.

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