Smith Barney Files Lawsuit, Restraining Order Against Broker
May 26 2009 - 5:48PM
Dow Jones News
Smith Barney has obtained a restraining order against a broker
and filed a federal lawsuit and arbitration claim, accusing him of
using confidential information to solicit business for a new
employer.
Brian Dillon, who left Smith Barney, the brokerage arm of
Citigroup (C) in New York, on May 15, allegedly solicited its
customers to transfer their accounts to Ameriprise Advisor
Services, Inc., a unit of Minneapolis-based Ameriprise Financial
Services Inc. (AMP), according to a complaint filed on May 19 in
U.S. District Court in New Jersey.
A restraining order obtained against Dillon and Ameriprise,
filed on May 20, required the return of Smith Barney's confidential
information, such as documents and computer data, within 24 hours.
The federal court order also bars Dillon and Ameriprise from
soliciting certain accounts, pending the outcome of an arbitration
before a Financial Industry Regulatory Authority, or Finra, panel,
according to the order.
Dillon worked for Smith Barney in Stamford, Conn., and is
currently employed as a registered representative by Ameriprise in
Paramus, N.J., according to the complaint.
The complaint says that Smith Barney will suffer irreparable
harm as a result of the alleged actions by Dillon and
Ameriprise.
A Smith Barney spokesman declined to comment Tuesday.
An Ameriprise spokesman declined to immediately comment.
An attorney for Dillon in the Radnor, Pa., office of Fisher
& Phillips LLP didn't immediately return a call requesting
comment.
-By Suzanne Barlyn, Dow Jones Newswires; 201-938-4546;
suzanne.barlyn@dowjones.com
-By Jessica Papini, Dow Jones Newswires; 201-938-2437;
jessica.papino@dowjones.com