Wells Fargo Sues Firm Legal professional For Plotting Launch of RIA


Wells Fargo accused a Florida lawyer and former in-house counsel for the agency with serving to a bunch of Wells Fargo Advisors monetary advisors with greater than $1.2 billion in collective belongings beneath administration depart the agency and begin their very own impartial observe, the place he now works.

Wells Fargo filed a go well with in Ohio federal court docket in opposition to Steven Satter for his alleged function in serving to the advisors depart a Kenwood, Ohio department of the wirehouse. In response to Wells Fargo, the advisors left the agency to determine DayMark Wealth Companions, which was fashioned in March of this 12 months and positioned a number of miles from Wells Fargo Advisors’ (WFA) Kenwood workplace.

“Wells Fargo seeks damages for hurt brought on by a former worker who has used the privileged and confidential info he gained as an organization lawyer to advise a competing agency in violation of his agreements, moral obligations, and firm coverage,” a Wells Fargo Advisors spokesperson stated in regards to the go well with. “As an worker, he offered authorized counsel on behalf of Wells Fargo Advisors (WFA) to the identical crew of advisors he now advises in competing with WFA.”

DayMark Wealth Companions is affiliated with Dynasty Monetary Companions, and runs on the Dynasty platform.

Satter had been with Wells Fargo since 2008, and “was liable for employment and litigation issues” in a area together with the Kenwood workplace. In response to WFA, Satter’s “sole perform” on the agency was to advise it on hiring practices, fiduciary obligation claims and non-solicitation and contractual obligations.

In April of this 12 months, Satter reportedly informed Wells Fargo he was “retiring,” however as an alternative labored to assist create DayMark, in response to the grievance. Satter is among the group’s founding companions and its authorized counsel, in response to an announcement of the RIA’s launch.

Wells Fargo believed the plot to depart the agency and located DayMark started in summer time 2021, with the group of advisors planning to solicit different WFA staff and purchasers to depart with them, together with Michael Quin, a market supervisor for WFA’s Ohio area who had a “longstanding shut relationship” with Satter.

As soon as Satter discovered in regards to the plans of Quin and the others, he didn’t report them to Wells Fargo, and started utilizing the data he gained at WFA to offer employment and litigation counsel to the DayMark staff, serving to the advisors to plan their departures from Wells Fargo.

A “DayMark” area identify and web site have been created the identical day Satter introduced his plans to retire, in response to the go well with. The seven advisors collectively resigned from Wells Fargo on June 6 and started instantly working at DayMark.

“Mr. Satter was in a novel place to make the most of his expertise and inside information of delicate WFA info – which he gained as WFA’s senior counsel – for the advantage of DayMark and the previous staff,” the go well with learn.

Wells Fargo argued it had opened FINRA arbitration proceedings in opposition to the departed advisors, and stated it was “inevitable” that Satter would disclose Wells Fargo “commerce secrets and techniques, privileged, and confidential info” when providing recommendation to DayMark’s new enterprise.

Satter didn’t return a request for remark as of press time.

Wells Fargo is looking for an injunction for Satter in utilizing any confidential info gleaned from the wirehouse, in addition to compensatory and punitive damages.

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