In the latest legal action from a firm not content to watch its client information walk out with a departing advisor, Edward Jones has secured a substantial arbitration award against one of its ex-brokers.
A Financial Industry Regulatory Authority arbitration panel last week ordered the former Edward Jones broker George “Keith” Demetriades to pay his old employer $1.5 million over alleged breaches of nonsolicitation and confidentiality agreements and misappropriations of trade secrets, among other charges. Demetriades started at Edward Jones 2012 and left in 2023 to become a registered advisor at Kingsview Wealth Management, according to the Securities and Exchange Commission’s Investment Adviser Public Disclosure database.
As is common in FINRA arbitration cases, the panel handing down the decision in this case did not go into its reasons. It listed the $1.5 million charge against Demetriades as a “stipulated award,” meaning it’s something both parties in the dispute agreed to.
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The ex-Edward Jones advisor’s counterclaims
Before the decision, Demetriades filed a counterclaim against Edward Jones and two of its employees, Leland Brockman and Leah Washington, alleging breach of FINRA standards for commercial honor, unfair competition and defamation.
“The causes of action related to Respondent’s allegation that the Edward Jones Parties filed this arbitration case in an effort to ruin his reputation in the industry and community,” according to the arbitration decision.
One of Demetriades’ lawyers, James Heavey, said in an email that “Mr. Demetriades is thrilled to be done with the Edward Jones distraction and continuing to provide exceptional service to his clients at Kingsview Partners.”
Kingsview, which had nearly $6.8 billion under management and 95 employees performing advisory functions by Feb. 28, did not return a request for comment.
An Edward Jones spokesperson said the arbitration decision provides accountability.
“Our top priority will always be serving our clients and helping them achieve financially what is most important to them,” the spokesperson added. “We do this by continuing to invest in systems, tools, processes and solutions for our financial advisors. We focus every day on being the place financial advisors can start, grow and optimize their practice.”
Edward Jones had also sought to have Demetriades ordered to cease misappropriating client data and stop soliciting its clients allegedly in violation of his previous employment agreements. The arbitration panel dismissed those claims along with granting the $1.5 million arbitration award to Edward Jones.
Nonsolicitation cases are par for the course in wealth management
Edward Jones is far from the only firm willing to take legal action against advisors accused of violating nonsolicitation clauses and other contract provisions after leaving for rival firms.
Last week, for instance, JPMorgan sued a former advisor over allegations that he violated his previous employment agreement by soliciting business from former clients after leaving to join Wells Fargo. Just five days before, JPMorgan made similar allegations in a suit filed against an advisor who had left to go to Morgan Stanley.
