Huntington's complaint alleges Jugovich-Bejster has since moved roughly 30 client accounts and $5.6 million in assets to his new employer, as well as confidential company and customer data. Those actions, according to the suit, violate various nonsolicitation clauses and similar contract provisions Jugovich-Bejster had agreed to while at Huntington.
Huntington further accused Wells of helping Jugovich-Bejster move client accounts and assets.
"It is believed that
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The judge overseeing the case, Cathy Bisson, rejected on Tuesday Huntington's request for a temporary injunction against Jugovich-Bejster and Wells, citing a technical omission in its motion. That decision prompted Huntington's counsel to apologize and ask for reconsideration of the injunction request.
"The request for a temporary restraining order was denied," a Wells spokesperson said. "We are pleased with the court's decision, and we look forward to a full hearing on the claims."
Joseph Simms, a lawyer at the Cleveland-based firm Reminger representing Huntington in the case, declined to comment. Huntington Investment's RIA arm, Huntington Financial Advisors, listed roughly 400 employees with advisory functions and nearly $5.2 billion in assets under management in its latest Form ADV, filed with the Securities and Exchange Commission on May 14.
Huntington's complaint calls for both a temporary restraining order and permanent injunction to be placed on
The suit alleges Jugovich-Bejster and Wells both violated Pennsylvania law on trade secrets, interfered with business relationships and obtained unjust enrichment. It also accuses Jugovich-Bejster specifically of breaching his contract and
With competition red hot for advisor talent, many firms have been willing to haul rivals into court over alleged infractions of nonsoliciation clauses. In May, for instance, a federal judge imposed a temporary restraining order on Raymond James over allegations that two newly hired brokers had violated
Danny Sarch, the president of the recruiting firm
"The idea that a client's phone number that you might have had on a phone for 20 years is a trade secret like the recipe for Coca-Cola, I find that laughable," he said.
Still, Sarch said, advisors should take time to review any nonsolicits they might be under before leaving and make sure they aren't doing anything that is a blatant violation. Firms that can prove particular client relationships arose from one their own leads often have a strong claim to having proprietary control.
Jugovich-Bejster may be able to best defend himself against nonsolicitation claims if he can show that he was working with certain clients before joining Huntington. According to FINRA's BrokerCheck database, Jugovich-Bejster started his career at Edward Jones in 2011 and was at PNC Investments and LPL Financial before joining Huntington. Huntington's complaint says he lives in the Pittsburgh suburb of McMurray, Pennsylvania.
"It depends in part on to what extent they brought him clients and if they can show that," he said.
Brian Hamburger, the chief counsel of the Hamburger Law Firm, said the complications that can come with nonsoliciation clauses are one of the big reasons he and his colleagues spend an "inordinate amount of time" helping advisors through transitions from one firm to another. He said he hopes Jugovich-Bejster received some sort of legal guidance before leaving for Wells.
"But we don't know as we sit here today what their strategy was or if there was one," Hamburger said, "if this was well thought out or if they were just throwing caution to the wind."
Jugovich-Bejster, according to Huntington's complaint, accepted nonsolicitation agreements as part of various stock award deals he entered into with the firm starting in 2020. The nonsolicits prohibit from trying to drum up business from former clients for a year after leaving Huntington.
Those same stock award agreements prohibited Jugovich-Bejster from using confidential information to solicit ex-customers. And it contained a provision requiring him to provide 30 days' advance notice of any plan to resign and to "disclose any financial services entity or other competitor with which the Employee has accepted employment or is considering accepting employment."
Huntington's complaint alleges Jugovich-Bejster departed on June 6 without letting the firm know of his intentions beforehand. Huntington said its counsel sent Jugovich-Bejster a letter four days later laying out his contractual obligations.
Despite that reminder, according to the complaint, Jugovich-Bejster reached out to former clients and an ex-colleague in attempts to win new business.
"In the course of these discussions, Bejster attempted to induce these customers to transfer their business from Huntington to
