Three former employees of a U.S. bank are accused of attempting to entice wealthy clients, as claimed in a legal lawsuit.
In a recent development, U.S. Bank has filed a lawsuit against three of its former wealth managers - James Kirk, Darcy Frederickson, and Jason Beumer - for allegedly trying to lure affluent clients and their managed assets after they left to join RBC Wealth Management.
The trio, who primarily serviced clients with between $10 million and $75 million in assets, quit U.S. Bank on April 15 to work at Royal Bank of Canada. Through its own investigation, U.S. Bank found that the trio contacted 24 customers on or soon after April 15.
According to the lawsuit, the bankers had signed contracts that restricted their use of confidential information belonging to U.S. Bank or its customers, and also agreed not to solicit U.S. Bank clients after their employment.
One such customer contacted by Frederickson told U.S. Bank that Frederickson had offered to move the customer's relationship to RBC Wealth Management. At least one of the 24 customers has informed U.S. Bank that he would be moving his relationship to RBC Wealth Management, to work with Kirk and Beumer.
The combined assets under management of the 24 customers solicited by the bankers account for nearly $700 million and $4 million in annual revenue.
As of now, no recent public updates on a May 15 hearing concerning this lawsuit have been found. The latest relevant information about U.S. Bank involves a $55 million settlement related to an overdraft fee class action lawsuit, but no reference was found regarding litigation against former wealth managers or a hearing on May 15.
For the most current details on this case, it might be necessary to check court records or news archives directly related to U.S. Bank litigation.
The former wealth managers at U.S. Bank, James Kirk, Darcy Frederickson, and Jason Beumer, are now under legal scrutiny for soliciting business from their previous clients after moving to RBC Wealth Management. These former employees, who handle high-net-worth clients with investments ranging from $10 million to $75 million, have allegedly breached confidentiality agreements and solicited business against the bank's policies.
