FINRA Panel Awards $160K in Broker Poaching Dispute Between Former Ameriprise Teammates
From the desk of Jim Eccleston at 麻花传媒
A FINRA arbitration panel has ordered Kraig R. Bode, an independent broker now affiliated with Sanctuary Wealth, to pay $160,000 in damages to his former teammate, Seth C. Murray, stemming from allegations of client solicitation following Bode’s departure from Ameriprise Financial in October 2021.
According to the FINRA award, Murray alleged that Bode breached his employment agreements by targeting clients previously served by their Ameriprise team. Murray, initially sought nearly $1.8 million in damages, plus interest, attorneys’ fees, and unspecified punitive damages.
Bode denied any wrongdoing and filed a counterclaim asserting that Murray had improperly used his name on client statements and meeting invitations after his departure. As reported by AdvisorHub, he sought $350,000 in damages. The arbitration panel rejected Bode’s counterclaim in full and ordered that the $11,250 in hearing session fees be split evenly between both parties.
The dispute underscores the ongoing tension within wealth management over client ownership, especially in team settings. While both Ameriprise and Sanctuary Wealth are signatories to the Protocol for Broker Recruiting, clients governed by internal team agreements typically fall outside its protections.
Representatives from Sanctuary, Ameriprise, and both parties' legal counsel either declined or did not respond to requests for comment, according to AdvisorHub.
麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law, finra