JPMorgan Chase has filed suit in federal court in Florida against a former private client advisor, alleging he violated employment contract provisions after departing for Morgan Stanley. The suit targets Brian Krauthamer, who resigned from JPMorgan on May 1 and subsequently joined the wirehouse, according to court filings this week.
Krauthamer operated out of a JPMorgan bank branch office in Boca Raton, Florida. The bank is seeking a temporary restraining order to halt what it describes as ongoing attempts to entice former clients to follow him to his new firm. JPMorgan claims Krauthamer signed restrictive covenants prohibiting client solicitation for one year after employment ended and requiring him to maintain confidentiality of client information.
According to FINRA records, Krauthamer entered the wealth management industry in 2006 at Ameriprise, then joined Chase Investment Services in 2010 before officially registering with JPMorgan Chase two years later. After becoming a Select Private Client Advisor in 2024, he relocated from Southampton, New York, to Florida, according to reports cited in the complaint.
JPMorgan contends that Krauthamer built his book of business with the firm's assistance, having been introduced to existing bank clients in his role as an advisor. The bank alleges that since joining Morgan Stanley, Krauthamer has actively solicited former clients to transfer their accounts, in some instances calling them on personal cell phone numbers that the bank claims constituted confidential information he improperly retained.
In one documented case, Krauthamer allegedly told clients that Morgan Stanley offered a robust opportunity with more offerings than JPMorgan. Another client reportedly felt Krauthamer was pushy about requesting an appointment. At least four additional clients informed JPMorgan about solicitation attempts by their former advisor, according to the complaint.
The financial impact appears substantial. JPMorgan says approximately 90 households with assets totaling roughly $161 million opted to move their business with Krauthamer to Morgan Stanley. The bank believed that at the time of his resignation, Krauthamer worked with about 244 households representing approximately $229 million in assets under supervision, suggesting roughly 70 percent of assets remained at JPMorgan.
Morgan Stanley declined to comment for this story. An attorney for Krauthamer did not return a request for comment prior to publication. The case highlights the stringent employment terms often imposed on bank branch advisors, who typically do not build their own books of business from scratch and therefore face more restrictive post-employment obligations than traditional wirehouse advisors.
JPMorgan has frequently brought former advisors to court over similar alleged violations. In January, the bank filed suit against another advisor, alleging that Kevin Sercia solicited clients after joining LPL Financial and setting up a new office in a building literally across the parking lot from his former JPMorgan bank branch in Stuart, Florida.
The lawsuit arrives during a period of executive transition at JPMorgan Chase. Earlier this week, the firm's Head of Consumer Banking, Marianne Lake, announced her retirement, prompting a reshuffling of potential successors to Chief Executive Officer Jamie Dimon. The firm named Troy Rohrbaugh and Doug Petno as co-presidents, positioning them as potential successors if and when Dimon steps down. Rohrbaugh is replacing Lake, while Petno will oversee the commercial and investment bank.
The newly appointed co-presidents received $30 million one-time retention awards. Chief Operating Officer Jenn Piepszak and Mary Erdoes, who runs the firm's asset and wealth management division, each received $20 million retention awards, though their titles remained unchanged in the executive reshuffling.