Ameriprise says LPL urged advisor to improperly attract clients

Ameriprise Financial has accused its longtime advisor Douglas Kenoyer and rival broker LPL Financial of misappropriation of trade secrets and unfair competition, among other violations, stemming from Kenoyer’s employment change last month from Ameriprise to LPL.

Kenoyer, who was registered as an advisor and broker with Ameriprise for 18 years, improperly solicited his clients to transfer their assets to LPL before switching companies on Sept. 19, according to a complaint filed Monday in court in US District of Seattle.

Many Ameriprise customers have already moved their accounts to Kenoyer at LPL, Ameriprise says.

Ameriprise asked the court to issue a preliminary injunction and temporary restraining order prohibiting Kenoyer and LPL from continuing the solicitation and use of Ameriprise’s confidential information pending arbitration by the Financial Industry Regulatory Authority on the question. The company also asked the court to force the defendants to return this information.

“Kenoyer’s behavior before and after the termination was filled with misconduct and transgressions, supported and encouraged by LPL. Specifically, prior to his transition to LPL, Kenoyer improperly pre-solicited Ameriprise customers to join him at LPL.

In the weeks and months leading up to the move, Kenoyer made notes in Ameriprise’s customer relationship management system about customer conversations, such as “I don’t think they’ll come,” “They don’t really didn’t want to move” and “not come with me,” according to the complaint.

“Now, Kenoyer continues to solicit Ameriprise customers,” the complaint alleges, alleging that the solicitations were based on confidential information misappropriated from Ameriprise and disclosed to LPL.

“Kenoyer engaged and is currently engaging in such misconduct with the knowledge and support of LPL, whose pattern and practice is to encourage recruits to violate their contractual agreements,” Ameriprise alleges.