Ameriprise Financial has accused longtime advisor Douglas Kenoyer and rival broker-dealer LPL Financial of misappropriation of trade secrets and unfair competition, among other violations, stemming from Kenoyer's employment switch last month from Ameriprise to LPL.
Kenoyer, who was registered as an advisor and broker with Ameriprise for 18 years, improperly solicited his clients to move their assets to LPL before he changed firms on Sept. 19, according to a complaint filed Monday in U.S. District Court in Seattle.
Numerous Ameriprise clients have already transferred their accounts to Kenoyer at LPL, Ameriprise contends.
Ameriprise asked the court to issue a preliminary injunction and temporary restraining order barring Kenoyer and LPL from further solicitation and from using Ameriprise's confidential information pending a Financial Industry Regulatory Authority arbitration on the matter. The firm also asked the court to compel the defendants to return that information.
"Kenoyer's pre- and post-termination behavior has been rife with misconduct and transgressions, supported and encouraged by LPL. Specifically, prior to his transition to LPL, Kenoyer improperly pre-solicited Ameriprise's clients to join (him) at LPL.
In the weeks and months before the move, Kenoyer took notes in Ameriprise's customer relationship management system on client conversations, such as "don't think they will come," "they really didn't want to move," and "not coming with me," according to the complaint.
"Now, Kenoyer continues to solicit Ameriprise's clients," the complaint contends, alleging the solicitations relied on confidential information misappropriated from Ameriprise and disclosed to LPL.
"Kenoyer engaged in and is presently engaging in such misconduct with the knowledge and support of LPL, whose regular pattern and practice is to encourage recruits to violate their contractual agreements," Ameriprise alleges.
