JPMorgan Chase & Co. has reached an agreement with a former broker accused of violating his employment contracts with the bank, AdvisorHub reports.
JPMorgan’s broker-dealer, J.P. Morgan Securities, had filed suit last month asking a federal court in Texas to issue a restraining order against Kevin B. Rossow, a former advisor who left for Wells Fargo Advisors but allegedly continued to solicit clients in violation of the one-year non-solicitation clauses in his employment agreements
Rossow has now agreed to a temporary restraining order barring him from encouraging his customers to move their assets to Wells Fargo.
Rossow came to JPMorgan in 2012 as a relationship broker before joining a bank branch in Longview, Texas in 2021 as a Private Client advisor. He moved to Wells Fargo in July while continuing to operate out of Longview.
The lawsuit accused him of improperly taking customer contact information when he joined Wells Fargo.
According to the suit, Rossow immediately began soliciting clients from his former firm, and over 12 clients informed JPMorgan representatives about Rossow’s phone calls to them. In one case, he allegedly falsely claimed there was no longer an advisor in his former branch. Rossow requested a meeting with another client, telling her he could “make her money grow better” if she moved her accounts to Wells Fargo, according to the suit. “The client informed JPMorgan that what Rossow said to her was ‘sneaky,’ and was visibly upset about her interaction with Rossow,” the complaint read.
JPMorgan accused him of accessing confidential client files in the weeks before his resignation. On June 25, they claimed Rossow accessed about 60 profiles in the firm’s central program in one day, about 20 of them “in rapid succession” over about 30 minutes.
The firm argued that Rossow took client information (including contact information) from JPMorgan, either by taking photos of the profiles, memorizing the information, or through some other means, and brought it to Wells Fargo.
As part of the stipulated order that has been reached, Rossow was required to return within five days any client information taken from the bank. The order does not constitute an admission of wrongdoing by Rossow and remains in effect pending the outcome of the arbitration where JPMorgan seeks a permanent injunction and damages.
Rossow’s lawyer, Thomas Lewis of Stevens & Lee in Lawrenceville, New Jersey, said in a statement that the broker is pleased to have reached an agreement with JPMorgan and looks “forward to defending the claims lodged” by JPMorgan in FINRA arbitration.
Spokespeople for JPMorgan and Wells both declined to comment, and Rossow did not immediately respond to a request for comment.
Transitioning employment in the financial services industry requires counsel that can evaluate any potential legal implications so you can properly manage risk and focus on transitioning your clients. If ignored, these risks can turn a simple transition into contested litigation with significant consequences. Obtaining counsel from a qualified attorney should thus be part of any transition. Lewitas Hyman offers comprehensive and sophisticated counsel to clients nationwide, originating from years of advising financial firms and registered representatives on firm transitions. For more information, contact Lewitas Hyman at (888) 655 6002 or through our online contact form for a free consultation.
