Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

Former Steward Advisors Sue Firm as They Depart for LPL

Posted on October 27th, 2023 at 2:29 PM
Former Steward Advisors Sue Firm as They Depart for LPL

From the desk of Jim Eccleston at Ä¢¹½´«Ã½ 

Experienced brokers have witnessed a significant increase in recruiting offers in recent years. However, a lawsuit filed against Steward Partners Global Advisory last week illustrates the consequences that can arise when these deals, particularly those involving equity, take a negative turn. 

Two Texas advisors who transitioned to LPL Financial admitted in their lawsuit that Steward accused them of underperforming. Consequently, Steward aimed to recover the millions it had initially disbursed to them in cash and company shares when they joined Ä¢¹½´«Ã½lls Fargo Advisors in 2020. In their complaint, Rick A. Fuchs and Graham P. Heck are pushing back by alleging that Steward inflated the value of their recruiting deal by providing misleading information about the shares' worth.

According to AdvisorHub, in 2021, the advisors asserted that the shares were valued at just $13.22 per unit, resulting in a collective decrease in the value of their deal by $600,000. Moreover, the advisors alleged that, in January 2022, Steward, facing a "cash crunch" initiated reclaiming a portion of the recruiting bonus from advisory teams.

Under the threat of termination, the advisors repaid $1 million and two-thirds of the shares they had received. They are now pursuing an unspecified amount of damages, claiming that Steward violated federal securities laws.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. Ä¢¹½´«Ã½ will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.