Morgan Stanley wants a federal court to issue a restraining order against a former advisor who allegedly left for Raymond James only days after taking over the accounts of a recently retired rep.
Morgan Stanley filed the lawsuit in Florida federal court against Corbin Hoffner, who, until several weeks ago, had been an advisor at the firm’s Sebring, Fla., office. According to the suit, Hoffner joined Morgan Stanley in 2020 without industry experience. The following year, Hoffner allegedly partnered with Greg Seaton, who was with Merrill Lynch for more than two decades before joining Morgan Stanley in 2012, according to SEC records. Seaton received about 90% of the commission revenues from these clients, and Hoffner agreed to a confidentiality policy as part of his employment, according to the suit. Seaton’s client base represented about $90 million in managed assets, generating about $600,000 for the firm in 2024.
On Aug. 27, Morgan Stanley and Seaton sent letters to his clients informing them of his upcoming retirement. Both the firm and Seaton said Hoffner would be taking over the accounts; Seaton told clients that he had “full confidence” in Hoffner, according to the suit. Though he would retire, Seaton would continue to profit from his clients through Morgan Stanley’s Former Advisor Program, stipulating that Seaton would continue to get a portion of client revenue for five years as long as those clients remained with the firm.
But two days later, on Aug. 29, Hoffner abruptly resigned and joined Raymond James, according to the suit. Hoffner left with two other advisors, Dale and Matthew Grubb, and Joella Libero, a Morgan Stanley employee who assisted Seaton, to form The Grubb Group at Raymond James.
Raymond James did not respond to a request for comment prior to publication. A Morgan Stanley spokesperson said it "will take appropriate action to ensure that departing employees comply with their legal obligations."
According to the suit, Hoffner began an “aggressive campaign” to solicit Seaton’s former clients, allegedly telling them that Morgan Stanley was “so big” that the firm “would not allow latitude to service smaller customers.” Morgan Stanley alleged that Hoffner even falsely told clients his former branch was closing.
Morgan Stanley claims it immediately contacted Hoffner to stop soliciting but allegedly didn’t receive a response. The firm also speculated that Hoffner may have taken confidential client information and said that after Hoffner left, Morgan Stanley employees found many files for clients Seaton and Hoffner worked with in a shredding bin to be destroyed.
The firm is seeking a temporary restraining order that would prevent Hoffner from soliciting any of his former clients while Morgan Stanley and the advisor enter arbitration proceedings.
