(Bloomberg) — Citigroup Inc. accused a former wealth supervisor of improperly attempting to maneuver shopper accounts value $636 million to his new employer, Morgan Stanley.
Citi sued Steven I. Taub Thursday in New York state court docket, alleging he was contacting former purchasers in violation of a 12-month non-solicitation settlement. Based on the swimsuit, Taub, who resigned from Citi final month, has already satisfied dozens of purchasers to maneuver greater than $100 million.
A spokesperson for Morgan Stanley declined to remark.
Wall Avenue corporations are extremely protecting of high-net-worth purchasers and sometimes take aggressive measures towards staff to stop them from taking their clients to different corporations.
Final month, JPMorgan Chase & Co. accused two former personal shopper advisers who had a mixed $259 million ebook of enterprise of attempting to carry it with them to Wells Fargo & Co. The 2 advisers agreed earlier this month to not solicit JPMorgan purchasers.
Citi is looking for a court docket order barring Taub from soliciting its purchasers and utilizing its confidential info pending decision of a associated arbitration. The financial institution stated its purchasers sometimes stick with the agency no matter whether or not or not staff depart and that the “overwhelming majority” of Taub’s purchasers got here to him due to his employment at Citi.
“Citi spends substantial assets in gaining data about its purchasers and defending the privateness of such info,” the financial institution stated in its swimsuit. “It sometimes takes a few years of coping with purchasers for Citi to change into their major financial institution or investing agency.”
Taub, who joined Citi in January 2001, serviced about 431 households and different purchasers. Along with the $636 million in property underneath administration, these purchasers additionally had $100 million in deposits, in accordance with the swimsuit.
The case is Citibank NA v. Taub, New York State Supreme Courtroom, New York County.