VALENCIA, Calif.–Logix FCU has filed suit against the broker-dealer Osaic and a pair of advisers alleging they conspired to steal trade secrets and client information as part of a months-long attempt to “abscond” with its clients, according to a new report.
The $9.5-billion Logix FCU is alleging that John S. Janios and Anthony J. Martinez violated employment agreements and engaged in a “deliberate scheme” with Osaic to steal customers after the advisors “abruptly” left to launch their own practice in the same city in April of this year, according to AdvisorHub.
In its complaint filed in federal court in California, Logix said it discovered security camera footage of Janios and Martinez engaging in a “printing spree” and “stuffing documents into computer cases” in the weeks leading up to their resignation, as well as taking photos of their computer screens on the day they left, AdvisorHub reported.
“Defendants are recorded on video and tracked through electronic means brazenly and improperly snapping screen shots of Logix confidential information on mobile devices, stuffing documents into cases and printing hundreds if not thousands of pages of documents just prior to and on their coordinated day of departure from Logix,” according to the complaint.
‘Purloined Information’
Citing the suit, AdvisorHub said the credit union is further alleging the duo refused to return the allegedly purloined information and as a result it has asked for the court to issue a temporary restraining order. The suit brought 13 claims, including breach of confidentiality and racketeering, AdvisorHub said.
It further reported that the complaint additionally states the advisors and Osaic lawyers “doubled down, insisting—in spite of the evidence glaringly to the contrary—that they had done nothing wrong and concluding that ‘Osaic Wealth has closed its review of this matter’.”
Size of Practice Not Known
The complaint did not detail the size of their practice or how many clients had transferred their assets to Osaic, AdvisorHub said.
According to the report, Janios and Martinez founded a practice called Aristo Wealth Management at Osaic. They had been registered with LPL Financial when they were employed by Logix.
Advisor Hub said it was unable to obtain comment from Osaic or the two advisors.
