A federal judge has issued a ruling in the case of Wells Fargo Advisors’ complaint against one of its former brokers, according to Advisor Hub.
Judge Matthew F. Kennelly denied Wells Fargo’s request for a temporary restraining order against the broker, Elias S. Friedman. Kennelly did not give a written explanation for his decision but added that Wells would be able to proceed with expedited discovery to gather evidence in its bid for a permanent injunction, which was filed with FINRA.
Friedman was fired by Wells Fargo in November after 23 years with the firm. Wells Fargo then filed suit against him for allegedly violating inherited account and teaming agreements by soliciting clients to join his new firm, Mariner Independent Advisors. Wells Fargo sought the restraining order in an effort to block Friedman from soliciting the book of clients. The firm also requested the return of any customer contact information being used for outreach.
Wells Fargo’s lawsuit named Friedman, who was based at a branch in Schaumburg, Illinois, as well as Cynthia B. Jones, who retired in May 2021. The two were accused of violating the terms of their succession planning agreements. The complaint contended that Friedman, with help from Jones, encouraged customers with around $40 million in assets to move to Mariner despite agreeing not to solicit them for at least one year after his departure.
Friedman said in a response that Wells’ allegations were based on “triple hearsay” and did not meet the threshold for a temporary restraining order.
Wells was “unable to provide sufficient evidence at this stage” that Friedman solicited clients that were governed by the succession and team agreements, James Eccleston of Eccleston Law in Chicago, who represents Friedman, said in an email.
A spokesperson for Wells declined to comment on the case.
The U5 termination notice filed by Wells stated that Friedman was fired on November 18 for “not meeting behavioral expectations involving interactions with a colleague.”
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