麻花传媒

Hightower Drops Claims Against Former Advisor Amid Non-Compete Dispute

Posted on November 20th, 2024 at 3:58 PM
Hightower Drops Claims Against Former Advisor Amid Non-Compete Dispute

Hightower, a Chicago-based RIA firm, recently dropped its lawsuit against former advisor Lars Knudsen just days before a federal judge in Illinois was set to rule on the firm’s injunction request. According to WealthManagement, Hightower sued Knudsen in March, alleging that Knudsen violated non-compete agreements following his termination. The firm claimed his dismissal was due to policy breaches, including allegedly bringing a firearm into the office. Knudsen countersued in Washington, accusing Hightower of coercing advisors into restrictive contracts and misrepresenting his professional conduct.

Knudsen, who led Triad Wealth Management before joining Hightower in 2014, argued that the firm pushed him out to secure his clients’ assets, fostering what he described as a “toxic corporate culture.” He contended that the company’s leadership and recently added advisors sought to reshape the culture of his Belleview office, pressuring him to retire and allegedly making derogatory remarks to clients to facilitate his exit. Knudsen's attorney characterized Hightower's actions as a “disinformation campaign” against him.

Hightower, however, asserted that Knudsen misappropriated firm earnings and directed over $225,000 in client fees for personal use. The firm also alleged that Knudsen repeatedly brought a loaded firearm into the office, once placing it on the table during a termination meeting with an employee. Knudsen refuted these allegations, stating that he accidentally brought his firearm to the office once, immediately returned it to his vehicle upon realizing the mistake.

While Hightower has withdrawn its Illinois claims, the firm continues to pursue its case against Knudsen through binding arbitration. Meanwhile, Knudsen has filed a separate lawsuit against four Hightower Bellevue principals, alleging that they diverted firm funds to deny him owed compensation. Hightower has refrained from commenting on the ongoing litigation, stating only that it intends to continue pursuing its claims in arbitration.

 

麻花传媒 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

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

November 4, 2025
FINRA Suspends Former Morgan Stanley Advisor Over $180,000 in Improper Transfers

The Financial Industry Regulatory Authority (FINRA) suspended former Morgan Stanley advisor C.J. Kline for two years and imposed a $5,000 fine for allegedly executing more than $180,000 in improper fund transfers between his personal and brokerage accounts.

November 3, 2025
Former Florida Broker Pleads Guilty in $2.7 Million Investment Fraud and PPP Loan Scheme

Former Florida broker Jared Dean Eakes, 34, of Jacksonville, has pleaded guilty to wire and bank fraud in connection with a $2.7 million investment scam and a separate scheme involving over $4.75 million in fraudulent Paycheck Protection Program (PPP) loans, according to U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.

October 31, 2025
Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

Three former Morgan Stanley advisors filed suit this week against the U.S. Department of Labor (DOL), claiming the agency exceeded its authority and was unduly influenced when it issued an advisory opinion that sought to undermine their deferred compensation claims.