In U.S. District Court for the Western District of Pennsylvania, PNC Bank (PNC) is suing Emily Daly, one of its ex-trust advisers, and her employer Morgan Stanley (MS). According to InvestmentNews, The bank contends that Daly allegedly stole trade secrets, solicited its clients, and violated her employment agreement when she switched firms. Meantime, Morgan Stanley is accused of helping her bring over the confidential data about clients.
Banks don’t like it when advisers take their customers with them when they go to another firm and nonsolicitation agreements can be violated as a result. Also, under PNC’s employment contract, employees are not allowed to take data that isn’t general industry knowledge or from a public source when they leave a firm. The bank contends that Daly helped transfer over $250 million in client assets to Morgan Stanley, which allowed the firm to make fees of about $ 1 million.
Daly even purportedly used her cell phone to take pictures of her computer screen when internal measures made it impossible to download lists of clients. Boxes of client data that were in Daly’s office are said to have gone missing.
PNC wants millions of dollars in damages and back wage payments from Daly because she allegedly recruited some of hear colleagues to go work with Morgan Stanley.
At the SSEK Partners Group, we are here to represent investors that have sustained losses because of the negligence or wrongdoing of their representatives or their firms. We work with institutional and high net worth clients.
PNC sues former adviser, Morgan Stanley for “surreptitious conspiracy”, Investment News, April 3, 2014
PNC Bank claims former employee, Morgan Stanley stole information, TribLive.com, March 14, 2014
More Blog Posts:
$550M Securities Fraud Case Between Texas’ Wyly Brothers & SEC Goes to Trial, Stockbroker Fraud Blog, April 2, 2014
SEC Says Investment Advisors Can Publish Third-Party Endorsements Online, Stockbroker Fraud Blog, April 1, 2014
Bank of America Settles Mortgage Bond Claims with FHFA for $9.3B, Institutional Investor Securities Blog, March 29, 2014