A former JPMorgan Chase & Co. private client advisor who moved to Wells Fargo & Co. agreed to temporarily stop soliciting clients from his former book worth more than $250 million while arbitration is underway.
Gary Carruthers, who resigned in September, was sued by JPMorgan last week after he had allegedly persuaded more than two dozen former clients with $24.3 million in assets under management to transfer their business to Wells Fargo.
JPMorgan alleges he violated contracts barring him from soliciting clients for a year after leaving.
The consent agreement, which does not include an admission of liability, was approved on Monday by New York state court Judge Arthur Engoron in Manhattan. The accord will remain in place until the Financial Industry Regulatory Authority issues a dispute-resolution decision.
Under the consent agreement, Carruthers must return all documents regarding JPMorgan's clients, employees or businesses, including electronic records and hand-written notes.
JPMorgan argues Carruthers engaged in "highly suspicious" computer activity during the month before he resigned, rapidly accessing "an unusually high number of client profiles."
JPMorgan and Wells Fargo declined to comment. Michael C. Bond, a lawyer for Carruthers, didn't return messages seeking comment.
