JPMorgan Chase & Co. sued a former private client advisor who jumped ship to Wells Fargo & Co., accusing him of violating a post-employment agreement by seeking to solicit former clients worth more than $250 million.
Gary Carruthers, who resigned Sept. 30 after 15 years with JPMorgan, has already persuaded more than two dozen former clients with $24.3 million in assets under management to transfer their business to Wells Fargo, according to a lawsuit filed Monday in New York state court in Manhattan.
Carruthers was barred by contracts in 2009 and 2012 from soliciting former JPMorgan clients for a year after leaving, according to the suit.
The New York-based bank alleges Wells Fargo "incentivized" Carruthers to breach the restrictions with financial inducements totaling more than $1 million to switch jobs.
The suit is the latest example of Wall Street banks clashing over employment agreements that seek to rein in former workers.
The U.S. Federal Trade Commission voted earlier this year for a near-total ban on more restrictive non-compete provisions that prohibit workers from switching jobs within an industry.
The FTC action was later blocked by a federal judge, but companies still clash over allegations of stolen trade secrets and client lists.
Wells Fargo, which isn't named as a defendant in the suit, declined to comment. Carruthers didn't return a call to his office in Woodbury, New York.
JPMorgan also didn't immediately return a message seeking comment.
