JPMorgan and a $14 billion team that moved to Merrill Lynch reached a settlement, ending a quarrel over whether the advisors had violated non-solicitation agreements, according to court documents.
In the contentious dispute JPMorgan argued that the former employees of its private bank had been "bad-mouthing" the company to clients,
Advisors Kirk Cunningham and Todd Helfrich had left JPMorgan in April, joining Merrill Lynch's Private Banking & Investment Group after a short garden leave, according to the lawsuit. They had already transferred about $160 million in client assets when some former clients allegedly complained to JPMorgan about being solicited to move their accounts to the team's new employer, Merrill Lynch.
JPMorgan contended that the advisors had violated non-solicitation agreements they signed while employees and that they had also taken confidential client contact information. The two men had worked for the company's private bank in Chicago.
Cunningham and Helfrich have now agreed to cease soliciting clients they serviced at JPMorgan or clients they know through their employment at JPMorgan, according to the settlement agreement, which was filed Friday in federal court.
However, the settlement does not prohibit the advisors from responding to and servicing clients who contact them.
As part of the settlement, Cunningham and Helfrich did not agree to or admit "any liability or acknowledge any wrongdoing," according to the court documents.
It also does not make "any findings as to whether Defendants violated their agreements with JPMorgan."
The agreement also stipulates that the advisors would sign a certification attesting they have no records or documents belonging to JPMorgan. A Merrill spokesman confirmed they had not taken any such materials.
Brent McIntosh is Citi's chief legal officer and corporate secretary. Brent leads Citi's Global Legal Affairs & Compliance organization, which includes the Legal Department, Independent Compliance Risk Management, Citi Security and Investigative Services and Citi's Regulatory Strategy and Policy function. He is a member of Citi's Executive Management Team.
Brent served as under secretary of the Treasury for international affairs from 2019 to 2021. From 2017 to 2019, Brent served as Treasury's general counsel. Prior to that, he was a partner in the law firm of Sullivan & Cromwell.
Brent served in the White House from 2006 until 2009, first as associate counsel to the president and then as deputy assistant to the president and deputy staff secretary. Before that, he was a deputy assistant attorney general at the Justice Department.
Susana Ortega Valle is the VP of Product, where she leads the strategic vision for how small business owners engage with insurance. Throughout her two-decade career, she has built a reputation for developing high-performance teams that thrive on innovation and challenge conventional thinking.
Prior to joining Simply Business, Susana held digital product leadership roles at State Street and Santander Bank. Her approach to data-informed, AI-forward product strategy is backed by a robust academic foundation, including two MS degrees in Telecommunications Engineering and an MBA from MIT.
Advisors know that a transition plan is important, but many fall into the trap of procrastination.
Reached for comment, Cunningham referred comment to Merrill Lynch. An attorney representing the advisors, Martin McManaman of Chicago law firm Lowis and Gellen, did not return a call seeking comment.
A spokeswoman for JPMorgan declined to comment.
The agreement does not have any bearing on a pending FINRA arbitration case between the bank and the advisors.
JPMorgan has filed other lawsuits over the past year alleging former brokers had violated non-solicitation agreements.
This is also not the first dispute between JPMorgan and an advisor who moved to Merrill Lynch. Earlier this year,
