In a petition to an Idaho court, Morgan Stanley sought to prevent three former brokers in its employ at its Coeur D'Alene branch from contacting former colleagues to join the firm of Stifel Nicolaus & Co. The three former Morgan Stanley brokers is said to have generated more than half of the revenue of the branch office.
The three has left Morgan Stanley last May 9 and have set up a rival office in the same city. The three was lead by branch manager Michael Armon and in the petition, Morgan Stanley claims that their acts have caused employees to be 'upset' and resulted in 'anxiety, insecurity, uneasiness and concern' in the small office comprising just six advisers. The petition was filed last May 17 in the US District Court for the District of Idaho.
The brokers who had left the firm managed US$229 million worth of client assets as well as generate revenues in the range of US$1.7 million per year.
Also included in the petition is the return of all company and client documentation from the advisors. They also sought the court to issue a restraining order from the destruction of any records or documents that may be used as evidence in the arbitration hearings to be held at a later date. Finally, Morgan Stanley, they seek the court to issue an order prohibiting the three from contacting other brokers and their support staff still working in the Coeur d'Alene branch.
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