I talked to them awhile back and tried to convince them to go to RJFS.  Wachovia was paying them a good bit of cash with similar business model--so they went that route.  Nothing wrong with that.  I'm sure they will be happy there!

Either way they are light years ahead of Jones...congrats fellas on making the move!.  BTW, this was well over 100 million if memory serves.   I was always told that only small producers with compliance problems go indy?  Maybe Jones should rethink their current strategy of misleading the greatest salesforce in the world about the merits of remaining at Jones?  After all, they aint the dumbest salesforce in the world!  Sooner or later--and sooner for some it seems--that the weakness of the Jones model will shine through.

Zacko- That’s all fine and good but until brokers are producing at a 250K gross there is no reason to do anything except building your business. The looking around at independent and other options is counterproductive at that level…

[quote=noggin]Zacko- That's all fine and good but until brokers are producing at a 250K gross there is no reason to do anything except building your business. The looking around at independent and other options is counterproductive at that level...[/quote]

Noggin, if the purpose is to make more money solely for money's sake, you're right.  But if that's your only motive, there will never be enough.  However, if there are other reasons for going indy, it can (and I feel should) be done before $250K.

Noggin,

What exactly are you referring to?  These WERE large producers and they--in fact, went indy...just with Wachovia. 

I don't recall ever advocating that ANYONE go indy under 250k.  I think you misunderstood the article you posted--my comment or both.

<SPAN =vitstoryline>Suit says Edward Jones withheld information

Law firm predicts number of complaints against broker will grow

10:00 PM CDT on Thursday, July 7, 2005

By WILL DEENER / The Dallas Morning News

A Dallas law firm said it began filing the first of perhaps hundreds of claims against Edward Jones & Co. on Thursday on behalf of customers who say they weren't told that the brokerage was paid to recommend a select group of mutual funds.

Burg Simpson Eldredge Hersh & Jardine has been contacted by 50 to 60 customers of Edward Jones, but "there will be many, many more," lawyer Richard Lewins predicted.

These types of claims are filed with the National Association of Securities Dealers, the agency that polices the brokerage industry. The cases are resolved through arbitration.

"I have clients who have lost anywhere from $1,000 to $300,000," Mr. Lewins said. "These claims are just the tip of the iceberg in terms of investors demanding restitution."

A spokeswoman for Edward Jones said: "We have not seen these arbitration cases yet, so it would be premature to comment."

The Securities and Exchange Commission and the NASD first raised allegations related to the St. Louis-based brokerage's revenue-sharing agreements in December 2004. Edward Jones settled that case by agreeing to pay $75 million in civil penalties.

The money was placed in a fund for distribution to investors, and the company agreed to disclose information about its revenue-sharing payments on its Web site. The SEC said then that Edward Jones entered into revenue-sharing arrangements with seven mutual fund families, which the company designated "preferred" fund families.

The claims filed by Burg Simpson allege that 95 percent of Edward Jones' mutual fund sales involved those seven fund families, although it had selling agreements with more than 240 fund families.

"Edward Jones failed to disclose to its clients that these seven fund families provided the firm tens of millions of dollars in fees and incentives in return for this preferential selling arrangement," the claim states.

Asked why these claims are necessary when $75 million has already been set aside to repay customers, Mr. Lewins said that amount "won't even scratch the surface" of the losses. "That might get you 2 cents on the dollar," he said.

Mr. Lewins said that anyone who invested within the last five years in the seven preferred fund families and lost money can file a claim, even if the losses were due to just a general stock market downturn.

An NASD spokesman declined to comment. SEC spokesman John Nester said the $75 million has not been distributed to investors yet because a distribution agent has not been announced.

Although Burg Simpson is filing these arbitration claims against Edward Jones, more claims probably will be filed against other brokers in other states for essentially the same reason. Last month, the NASD said it fined 15 brokerages $34 million, finding that they violated securities rules that prohibit them from favoring funds based on commissions received by the firms. Among those fined included Wells Fargo Investments and RBC Dain Rauscher Inc.

David Weaver, general counsel for the Texas State Securities Board, said law firms throughout the nation – including Burg Simpson – are taking out advertisements informing investors that they might have a claim against brokerage firms.

"Texas is not unique in this," he said.

E-mail [email protected]

The seven mutual funds designated as "preferred families" by Edward Jones:

American Funds

Federated Investors

Goldman Sachs Group

Hartford funds

Lord Abbett funds

Putnam Investments

Van Kampen Investments

I think that’s just another ambulance chaser hoping to win the litigation lottery.

Zacko-

They were not large producers until they took over from one IR who went to SL. They grew the biz because the bell curve (momentum) was on their side. THEY DID NOT BUILD THE BIZ. And the clients so far aren't pleased with their decision. The rumor I hear is the ACAT's are few and far between.

The presidents of Rotary (4-way test?) and Kiwanis. I can understand if a rep has built his/her biz but to be handed gold and try to steal it away is at the very least unethical. That small coastal town  in Northern California has determined so far that it doesn't pass the smell test. I doubt the new bank building owners will be there in five years. But at least they built their own furniture. Perhaps they may be starting another enterprise on the side once they realize the mistake they made and can't pay their bills.

After all if it has to do with money, they probably could handle it. What a bunch of crap....

I know the story....But, I had forgotten about taking over the office from a vet who built it prior until you reminded me.

I think they had been there for several years but I agree with you completely.  There is a different level of respect one deserves when they build an office from scratch.   I, like you did that.  I doubt they will have the client loyalty that they were hoping for unless they were very well prepared.  But, even then it would be more difficult.

The ethics question here is one I'm sorta split on...I say let the clients decide.  They will ultimately vote by placing their accounts where they feel most comfortable. 

I love this story on several levels.  I know some of the participants and it is ironic.

So to summarize. Williams did 3 goodnight programs, and moved up to GP in St Louis.  The goodnights looked at Jones a little closer and decided that they could do much better. They bought an historical building and renovated it in the town (which was a popular move to the towns people) and started their own office.  Meanwhile to do damage control Williams comes back and frantically starts plugging Reps from other cities (Fortuna and Medford) into the holes in the dike. One office has to close and they consolidate the remaining clients into two offices.  Back in Fortuna and Medford, some unsupecting newbies are being plugged into those offices, or perhaps they are also being consolidated since the company has grossly over populated those areas with offices.

The new office takes with them, to begin with, probably 50 of the 100 million.  Not a bad start, and gets a payout of probably 80-85% instead of the 35-38% they got at Jones.   Instead of each of them bearing the expenses of running an office and individually advertising, they pool their money.  So now they have a cool new office in a nifty historical building instead of a hole in a strip mall. A bank like professional atmosphere and high profile presence in the community. 

Where is the bad?

LIES, LIES, LIES.  I don't beleive anything you say 7yrvet.  When good solid employes choose to leave, what do you and EDJ do?

 You and YOUR  PIECE OF GARBAGE COMPANY MAKES UP LIES ABOUT THEM.  THINK FOR YOURSELF YOU JERK.  DON'T COME ON HERE REPEATING LIES ABOUT SOME VERY GOOD BROKERS WHO DECIDED TO DO SOMETHING TO BETTER THEIR CAREERS.

Clients arent pleased with their decision?!  Don't come on here making idiotic statements like that.   They will clean out most of their assets from their old offices DESPITE the LIES THAT WILL BE TOLD ABOUT THEM, THEIR BUSINESS AND THEIR CHARACTER BY MORONS LIKE YOU.  YOUR AN IDIOT AND A MORON AND THAT AINT NO LIE.  THE PEOPLE TRYING TO TEAR THESE GUYS DOWN ARE ALSO IDIOTS AND MORONS.  THEY REPRESTENT THE HEART OF EDWARD JONES.   THIS IS WHY SO MANY OF US HAVE SO MUCH RESENTMENT TOWARDS YOUR GARBAGE COMPANY.  THERE WAS ALL SORTS OF LIES  TOLD  ABOUT ME MADE TO MY CLIENTS WHEN I LEFT BUT YOU KNOW WHAT.  IT DIDNT WORK.  I TOOK MOST OF MY ASSETS AND NEVER LOOKED BACK.

I wish these guys the best of luck.  I hope they know that EDJ will take the very lowest road in doing what they can to try to screw up their business and their move.    

zacko, since you know them can you get us a progress report? a friend of mine was lucky enough to move down there and he says the acats are minimal also.

Malcolm-

The only thing good about them is that they are gone. Probably you could have been a top producer today had you been handed 60M two years ago. But guess what.....none of them were.

I am sorry if you feel Jones did not treat you well. I still maintain, when it is all said and done, the tradeoffs for me are well worth it. I applaud all of you who have gone independent. I am perplexed why there is so much dialogue about EDJ on these forums. Can't we move on to the real question of the day. Was this ethical?

BTW- Only one was a goodknight. The other two came in when the rep went back to SL. They came because of the assets, not the destination. 

I dont really know them...I just spoke to one of them a few months ago.  I'm sure we will get some kind of update in a few months. 

7yr,  You couldn't be more wrong on the tradeoffs.  They are so NOT worth it.  I went back and forth in my mind for years before I finally decided to leave.  My business increased all the while at Jones.   I can almost assure you that at some point you will rethink your decision and ultimately leave for indy.  After all, it took me five years after I first thought about leaving to finally do it!  I spent ten years at Jones before I moved to higher ground.  There is simply no logical reason to remain at Jones once you have achieved success. 

The ethics of this particular situation are a bit perplexing.  While being handed a large successful office and later snubbing Jones to go indy would tell me that I probably wouldn't want to hire these guys to ever work at a firm I owned.  But, I'll agree that the ethics are a bit questionable--but isn't it the client that ultimately decides?  I'm not about to call these guys UNethical as they are trying to better for themselves, their clients and their own families, nor am I going to say they are saints either who were so wronged by Jones that they couldn't take it anymore.  I'm taking a neutral position as I see both sides. 

I can almost guarantee that Jones sues these folks since the orginal book wasn't something they built.  It will bear watching...that's for sure.

Zacko- What i see is guys that think they are entitled… That to me may not unethical but seems to run very rampant in society today. i personally want to build my own book and if and when i decide to do something different i will drag as much of MY book as I care to. These guys are something else entirely, the very fact that you say that you wouldn’t hire these guys sepaks volumes to me.

Touched a nerve, huh Malolmtent? Three creeps suck up to a top producer, ride his coattails for a few years, then try and steal away the guys hard-won assets. What a joke. This just proves to me that they couldn’t make it work IN SPITE of a gift of a 100 million head start. As for you malcolm, your anger betrays smething else going on. Not going so well since taking the big plunge? I wonder. Every business attracts a fair number of unethical people.

Open letter to the anonymous board posters,

My name is Dan Catone. I am one of the three brokers from Edward Jones who went indy three weeks ago. I am writing to correct some of the misinformation which (surprise surprise) abounds on the internet...to set the record straight.

I started my business with Edward Jones in 2001 in Southern California. I went door to door for about a year, reached segment 3 and actually enjoyed the business building aspects of my job. At the end of that time I was approached by my regional leader to take a look at an open office in Fort Bragg, California. My wife and I wanted to live in a place other than Southern California and fell in love with Fort Bragg. When I was told about Fort Bragg, a senior level General Partner told me that I would have upwards of $20 million in assets (not too much more than I had in So Cal). I was expected to move within 2 weeks and I left my business to my regional leader and moved to Fort Bragg.

It turned out that my assets were actually $45 million, as they didn't want anyone to move to FB for the money...as FB is a very unique town. Robert Williams III (GP) was the third broker in the office (for 9 years) and two other very successful brokers (Charlie D'Pietro and Randy Hash, a total of about 8 years) built the office before he arrived, and Rob built upon it. When Rob Williams decided to leave Fort Bragg for greener pastures as a GP in St. Louis, EDJ split one large office into three separate offices all within a mile of each other on the same street in a town of 6000 people. 

During my almost 3 years in Fort Bragg I tried to give back to a firm I appreciated by volunteering my time. I acted as a Field Trainer, a Visiting Veteran (twice, although I wouldn't call myself a vet) and took on a goodknight (which failed). Also, I accepted awards that were given to me not because I felt I was entitled, but because I do feel I did a good job for the firm and appreciated the recognition. Over that time I became best friends with my two partners and we found it made less and less sense to have three separate office locations. Despite our request, EDJ would not combine our offices.

As to the question of ethics. 7yrvet asked if it was ethical for me to leave EDJ and change firms. I sent several private messages inviting my critics, especially those who were in my region (like 7yrvet), to call me and question my motives and ethics to my face. I have yet to receive a call. Instead, you post anonymously on the internet, questioning the ethics of someone you never bothered to get to know. Is that your idea of ethics? The isolation of Fort Bragg combined with a generally cold reception from Region 48 were not an ideal combination. As someone from my region, how was I supposed to feel working in a region where I was treated as the "ungrateful young punk who thinks the world owes him something?" My wife and I don't remember leaving a regional meeting where we felt welcome by a region I "inherited." Being 25 years old never really helped with the resentment factor I think.

I won't question someone's ethics anonymously on the internet. On this forum I've been called a "creep, ungrateful, disloyal, a suck-up," and I'm sure more. Since I do not have a personal relationship with any of you, I am not sure how you can judge me. This board gives me the same feeling I had every time I left an EDJ regional event. 

I reached a point in my career with EDJ when the things I was being told stopped aligning with reality. Independence was replaced with compliance wires. Quality investments were revealed to be quality revenue sharing arangments as well. Wallstreet Jounal finger wagging was replaced with a $75 million settlement. Ask yourself the question, Who left who first? At the end of the day, I need to know that the people who trust me can also trust the firm I work for. Being independent gives me complete control over the ethics of my firm.

We left as ethically as we could. We left one week before our bonus' paid and could have stayed, collected those, and left. We didn't because we didn't think it was right. We haven't solicited a client to transfer and we have tens of millions of dollars in process (so Dazed, you better talk to your source again)...and we don't even need to ask. Just remember, sometimes the "company line..." is just that.

My partners and I are already enjoying significant early success. Thus far, we have found small business ownership exciting and satisfying and look forward to many years of true independence and hope that one day you find it also.

Respectfully,

Daniel R. Catone

 fenderbroker. i am a jones broker who took over an office and i know what you are talking about. i started with another firm and accumalted 18m in 3 yrs in the mid 90’s. however, i have never been accepted as a “jones broker”  because i did not start new/new. i cleaned up a significant mess in my current situation and have managed to grow the asets significantly in the past 8 years. i applaud you for setting the record straight. if and when i leave ejones i will have no more guilt than the new/new as i once  was that person who left my original firm as “new/new”. i wish you only luck in your endeavor.

applaud, applaud, applaud

guest 1. bitter much.

Not at all…