A former Edward Jones advisor has agreed to pay $1.5 million to his previous firm to resolve claims that he violated employment agreements and improperly solicited clients after joining a competing registered investment adviser ("RIA"). AdvisorHub reports that the settlement came through a Financial Industry Regulatory Authority ("FINRA") arbitration award issued earlier this month.

Keith Demetriades, who previously oversaw roughly $230 million in assets from a, left Edward Jones in June 2023 to open an office with Kingsview Wealth Management. Not long after, Edward Jones filed an arbitration claim alleging Demetriades breached his non-solicitation and confidentiality agreements and misappropriated trade secrets. AdvisorHub reports that the arbitration award did not detail the specific conduct, though disputes over client information and solicitation frequently arise in the advisory industry.

Demetriades denied the allegations and countered with claims of his own, accusing Edward Jones of violating FINRA's catch-all rule requiring members to act honorably. He alleged the firm's actions aimed to damage his professional reputation. Additionally, Demetriades filed claims against two Edward Jones employees, including longtime broker and former general partner Leland Brockman.

AdvisorHub reports that on June 9, the parties reached a stipulated settlement. The arbitration panel dismissed Demetriades' counterclaims and split hearing fees between the parties. Edward Jones issued a statement expressing satisfaction with the award and the accountability it secured.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.