Morgan Stanley is accusing a former adviser who left for Raymond James of trying to raid a former colleague's book of business producing more than $1 million a year.
Morgan Stanley filed suit against Nicholas Takahashi in federal court in Nevada, alleging he took confidential client information and violated a nonsolicitation agreement barring him from reaching out to an ex-colleague's clients for a year after leaving. Takahashi, who has 14 years of industry experience, started at Morgan Stanley in 2013 and remained there for 11 years before leaving to join Raymond James earlier this year.
While at Raymond James, according to the suit, Takahashi's team of advisers entered into an agreement with a colleague, Steve Kleinertz, that might have put them in line to inherit his book of business should Kleinertz choose to retire. But no formal succession plan was ever reached before Takahashi and his team left in May, Morgan Stanley said.
Even so, Takahashi and colleagues, now making up a group called the
According to the suit, "it is inconceivable that Defendant and the Takahashi Team Members would have knowledge of the clients serviced by Mr. Kleinertz and their highly sensitive information without having accessed confidential client lists and records that were not related to their job responsibilities for Morgan Stanley, and unlawfully have taken such information to their new firm."
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A spokesperson for Morgan Stanley said, "Morgan Stanley will take appropriate action to ensure that departing employees comply with their legal obligations."
The suit against Takahashi comes a little over two months after Morgan Stanley
Takahashi did not return phone calls or emails seeking comments. The Takahashi Retirement Group website notes that he is the recipient of various industry recognitions, including being named a
The team's website tweaks Morgan Stanley, proclaiming Takahashi's "performance and commitment to client satisfaction earned him recognition" at his former employer. About his departure to Raymond James in May, it says: "This strategic move underscores Nick's commitment to maintaining client-centric relationships, free from the constraints of corporate objectives. By aligning himself with Raymond James, Nick reaffirms his dedication to prioritizing his clients' financial well-being above all else."
Morgan Stanley alleges that one of Takahashi's current colleagues, Sean Tsaconas, has been entrusted with reaching out to Kleinertz's clients. In trying to persuade them to come over, according to the suit, Tsaconas has taken to disparaging Morgan Stanley and suggesting Kleinertz is no longer at the firm.
Morgan Stanley brought these concerns to Takahashi's lawyer in a document dated Sept. 12, also asking that Takahashi and his team declare under oath that they had not taken confidential client information. Their lawyer, Christopher Stief of Atlanta-based Fisher Phillips, responded on Oct. 25 with a denial of the accusations and a refusal to have his clients sign any declarations.
Stief argued in the letter Kleinertz's clients were in fact shared with the Takahashi team while they were at Morgan Stanley.
"These were not solely Mr. Kleinertz's clients; they were joint clients. As such, the Advisors had every right to make announcement calls to these clients," wrote Stief, who did not respond to requests for comment.
Many wealth management firms allow departing advisers to export clients' names, addresses, phone numbers, e-mail addresses and account titles under an industry-spanning legal pact known as the broker protocol. Morgan Stanley
But belonging to the protocol is no guarantee against lawsuits. Ameriprise has taken its fellow protocol member LPL Financial
In its suit, Morgan Stanley argues Takahashi violated his employment contract by leaving with customer information and then reaching out to those clients, and that he breached his duty of loyalty to the firm. The firm seeks a temporary restraining order requiring Takahashi to cease soliciting Morgan Stanley clients and return any confidential data he and his team might have taken. If granted, the order also would allow for an expedited request for a permanent injunction from a FINRA arbitration panel.
Takahashi was the recipient of a recent arbitration windfall when a FINRA panel
While at Wells, Takahashi formed a relationship with a colleague named David Dougherty. The two later moved together to Morgan Stanley in 2013.
Dougherty's time at Morgan Stanley later soured over allegations that he had suffered age discrimination when his book of business was reassigned to Takahashi and that he was relegated to a non-producing role following treatment for a brain condition.
About two years after the suit was settled, in early 2020, Dougherty returned to
