Financial institution TD files a lawsuit against advisors who departed and joined Raymond James.
In a recent turn of events, Canadian banking giant TD has filed a lawsuit against two of its former employees, Gregg Desmarais and Brett Bartkiewicz, accusing them of violating their contracts by enticing clients to defect to Raymond James. The lawsuit comes as the bank is cooperating with a DOJ examination into its compliance with Anti-Money Laundering (AML) measures.
Desmarais and Bartkiewicz joined Raymond James unit Crescent Point Private Wealth as partners and family wealth advisers, a move that reportedly led TD to lose at least 10 accounts worth more than $22 million within a week of their departures. TD reported Desmarais' departure to regulators in April as a voluntary resignation after launching an internal review of suspected anti-money laundering policy violations, as per Desmarais' FINRA profile.
However, it's important to note that the internal review mentioned on Desmarais' FINRA profile is not related to TD's broader AML investigation, as stated by TD spokesperson Lisa Hodgins. Moreover, the non-solicitation lawsuit against Desmarais does not mention any AML woes, according to TD spokesperson Lisa Hodgins.
Michael Roche, a lawyer representing Desmarais, denies TD's allegations against his client, stating that Desmarais' lawsuit has no connection with TD's AML issues. The probe that was brought to FINRA's attention did not end before Desmarais left, according to TD spokesperson Lisa Hodgins.
In a separate development, TD plans to set aside $450 million to cover the penalty cost from one of the three U.S. regulators it is facing anti-money laundering inquiries from. The Canadian banking giant is under investigation after Justice Department agents revealed a money laundering operation that stemmed from a scheme under which criminals moved at least $653 million of fentanyl proceeds through branches in New York and New Jersey.
It's worth noting that the search results do not provide any information or articles related to a TD AML investigation or a Desmarais lawsuit involving TD Bank. Therefore, no direct connection or implications for TD Bank from those issues can be determined from the current data.
The legal battle between TD and its former employees is ongoing, and more details are expected to emerge as the case progresses.
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