A former broker for JPMorgan Chase Bank will be barred from soliciting his prior customers for his new firm under an agreement approved by a New York state judge, AdvisorHub reports.
The broker, Abhishek Vakil, moved to registered investment advisory firm Perennial Financial Services on Jan. 8. J.P. Morgan Securities, JPMorgan’s broker-dealer, claimed that Vakil improperly took customer contact information with him, and also violated one-year non-solicitation clauses in his employment agreements by trying to lure clients with promises of lower fees.
A court filing in New York disclosed that Vakil has now agreed to a temporary restraining order that prohibits him from trying to have his customers move their assets to Perennial. Furthermore, he was given five days to return any client information he was alleged to have taken from JP Morgan. Vakil reached the agreement without admitting wrongdoing.
The stipulated order will remain in effect until a Financial Industry Regulatory Authority arbitration panel rules on JPMorgan’s request for a permanent injunction.
Vakil’s lawyer, Jonathan A. Scobie of Stevens & Lee in Princeton, New Jersey, told AdvisorHub the broker “is pleased to have reached an agreement with JPMorgan and looks forward to defending JPMorgan’s claims in FINRA arbitration.” Vakil did not respond to a request for comment.
JPMorgan’s petition stated that Vakil oversaw about 121 households with $150 million in client assets at the time of his move. At least 17 clients with $34 million in assets transferred their accounts to Vakil at his new firm.
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