correction: 1 year non-solicit

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brkrboy's picture
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Joined: 2009-04-13

left large wire.  4 days later, after calling all clients, received a letter from law firm with a copy of non solicit of which i had signed (of which i do not remember doing):
 
For a period of one year following termination of employment for any reason, you will not solicit or attempt to solicit, directly or indirectly, any of firms customers who were serviced by you, or whose names became known to you, while in the employ of firm.  For purposes of this provision, the term "solicit" includes initiation of any contact with customers for the purpose of conducting business with or transferring accounts to any other person or fim that does business in any line of business in which firm is engaged.
 
Also says:
Immediately prior to your departure from firm you were witnessed initiating a large number of customer printouts.  these customer printouts are unaccounted for and are believed to have been improperly removed by you.
 
Accordingly, demand is hereby made for your compliance with the terms of your Agreement and the immediate return to your former firm branch office of any and all firm customer information removed or retained by you, in any form.
 
Be advised that if the above demands goes unheeded, it will be presumed that you do not intend to honor your contractual obligations to firm and legal action to enforce same may be instituted without further notice.
 
(these files were printed out, but were left in office)
 
Advise please:
1.  What to do?
2.  I would appreciate advice.
 
Thank You

NOVA's picture
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Joined: 2005-01-11

I think you were with UBS then.  Get an attorney.  Where did you leave the print outs and what did you print?  Just curious.

Sam Houston's picture
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Joined: 2008-12-01

TaKe dump, don't wipe, finder copier, make copies, coat fingers in chocolate sauce, handle copies, mail copies to said large wire.

NOVA's picture
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Joined: 2005-01-11

I'd also assume that your time period for transferring accounts just got shorter...You can still get 70% - 80% in two weeks.  Also, the inherited accounts that UBS assigned to you will come at a much smaller rate anyway

brkrboy's picture
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Joined: 2009-04-13

printed out client profile. then decided not to  take, smartly. left in office, with the knowledge of sales assistant there.

nestegg's picture
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Joined: 2007-06-14

I am guessing you didnt follow protocaol when you left...ie giving thema  printout of what info you took. Did you not go to a protocol firm. Why do you have a non compete if you were not under a forgivable loan or trainee?

JoeNatlanta's picture
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Joined: 2008-12-15

no judge in america will allow a non-compete to stand if protocol is followed...the argument would go something like this:

You mean you let someone go from your wirehouse to another wirehouse and ignored the non-compete, but someone can't go anywhere and ignore the non-compete? Its either good or no good - make up your mind. That's why NONE of these non-compete situations that i'm hearing of are making it to court...

Follow protocol. If you have, then printing off customer information to develop a sheet of protocol information is acceptable - tell them you filled out the information, then destroyed the information.

I would respond with "here is a list of my protocol clients, no information was taken improperly, so take me to court if you have an issue"...

chief123's picture
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Joined: 2008-10-28

Most firms have switched to non-solicit because those are easier to enforce and so wide spread it covers what they initially wan't the non-compete to cover.

deekay's picture
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Joined: 2007-05-15

I thought this was your "friend's" problem.

brkrboy's picture
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Joined: 2009-04-13

what the dif?

deekay's picture
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Joined: 2007-05-15

You're right, so why would you initially say "My friend..."?
 
What else are you lying about?

707SE's picture
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Joined: 2007-02-27

Who cares? Quit being a d*** and help him out. Otherwise quit trolling his thread

deekay's picture
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Joined: 2007-05-15

OK - here's my advice:
 
A) Hire an attorney, because you have no clue what you're doing, and looking for advice on a message board isn't going to get you much.
 
Or
 
B) Punch yourself repeately in the head for posting this a 4th time.  Then, go back and re-read the advice given in all your posts.
 
You can do both, but if you start with B, you may forget to do A.  YMMV.

etj4588's picture
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Joined: 2008-08-18

Get a lawyer pronto.  Best advice you'll get.  End of story.

Morphius's picture
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Joined: 2007-07-21

brkrboy wrote:left large wire. 
Where did you go?  This answer has quite a bit of bearing on what you should do.

brkrboy's picture
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Joined: 2009-04-13

went indie

Soothsayer's picture
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Joined: 2005-02-24

The language of the letter sounds very much like the work of a Mr. Christopher Pickett of EDJ fame.  PM me if I'm right and you want to hear more.....

Morphius's picture
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Joined: 2007-07-21

brkrboy wrote: went indie
"Indie" means nothing from a legal standpoint.

Assuming (which is all anyone can do with what you've told us so far) that you mean you joined an independent b/d as a rep, is your new b/d a member of the Recruiting Protocol?

Did you get any legal counsel on your move either from your new firm or your own attorney?

Do you have copies of the actual agreements you signed at your old b/d?

For that matter, do you have copies of any agreements you signed at your NEW b/d?

GoldCaddy's picture
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Joined: 2007-02-16

Wow--You finally made the shift.  I got two letters.  I ignored them both.  Ultimately we settled.  I made 5X my best year with my previous B/D after I went independent in my first year.  Be wise about what you put into writing. You can use the information which would be publicly available in a telephone book to contact your clients.  Move quickly to contact your clients.  Blue skies are ahead.  You'll never regret leaving.

IndyEDJ's picture
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Joined: 2006-12-13

brkrboy wrote:
Advise please:
1.  What to do?
2.  I would appreciate advice.
 
Thank You
 
I would get an attorney to work this out.  If you work for an Indy now, they should have a list of preferred securities attorneys that they will recommend.  Your former firm will be going after the 17% of trailing 12 months gross that is the average for breaking a non compete agreement.  Write it off as a business expense and get on with moving your book.  You are in a much better place now.
 
IndyEDJ

GoldCaddy's picture
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Joined: 2007-02-16

It is not an exaggeration.  I was with EJ for three years.  My best year with them was a shade over $50k.  I left Jones late in the year and had received checks totallying $110k by May of the following year.  Taking into account my cut is now 85% and I was getting 38% at EJ it wasn't hard to change the algebra and double my income while doing the same amount of business.  My business increased immediately after I left.  Yes, when I saw I was going to leave I sandbagged some new money into my business.  One can legitimately ask about my overhead, which was previously covered by Jones.  My cost for rent, furnishing, advertising, etc. for the first year was under $20k.  My total revenues, first year in business,were a bit less than $250k.  I do not have an assistant, but the use of technology, which was not available from EJ has more than offset the loss of a BOA.  My gross revenues (NOT GDC) for 2008 were a bit more than $300k, my net was about $250k.

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