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Advisor Ordered to Pay $2.6 Million in Damages for Breaching Asset Purchase Agreement

Posted on May 31st, 2024 at 2:13 PM
Advisor Ordered to Pay $2.6 Million in Damages for Breaching Asset Purchase Agreement

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

A FINRA arbitration panel has ordered Nicole E. Sennett to pay $2,557,000 in compensatory damages to Monocacy ÍøÆØ³Ô¹Ïalth Partners and its founders, Scott A. Brantingson and his son, Scott M. Brantingson. This decision comes after allegations that Sennett attempted to solicit former clients after selling her practice to the independent firm.

According to AdvisorHub, the panel issued an injunction preventing Sennett from soliciting clients listed in the asset purchase agreement. She also is barred from discussing or disparaging Monocacy or its founders, providing financial advice, or recommending any financial advisor to the listed clients. Furthermore, she cannot accept any listed client, even if the client initiates contact.

The arbitration panel also imposed additional damages on Sennett, amounting to four times 1 percent of any assets that transfer after the award. Sennett's counterclaim, which argued that Monocacy had breached the asset purchase agreement by refusing her access to certain books and records, was denied. She also sought to void the asset purchase agreement, but the panel concluded that the claimants owed her nothing and did not provide a written explanation, as is customary.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

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