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…..
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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.
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