One brokerage is claiming Wells Fargo benefitted benefitted from several of its important trade secrets after hiring one of its former executives.
According to a lawsuit filed in the Ohio federal court last week, Todd Belden of Hylant Group violated his contract by keeping several important clients from leaving Wells Fargo for Hylant in the months leading up to Belden’s employment with Wells Fargo.
Belden was president of Hylant’s Cincinnati office and a 10 per cent owner before he resigned on February 18. In the lawsuit, the company suggests that given his position, Belden breached his fiduciary duties to the office’s other shareholders. His actions will also result in a “reduction of Hylant’s annual revenue and loss of customers,” the company said.
Hylant also accuses Belden of violating a 2012 agreement in which he was forbidden from soliciting Hylant customers or staff to leave the company for three years after his departure. The brokerage claims that the morning after resigning, Belden had a breakfast meeting with another member of staff whom he attempted to recruit to Wells Fargo.
“Unless Belden is immediately enjoined, he will cause significant, long-term damage to Hylant,” reads the complaint.
The lawsuit also seeks to reclaim the money Wells Fargo has received as a result of Belden’s urging clients to stay with Wells Fargo, who had wanted to leave for Hylant. Hylant is also seeking a temporary restraining order on Belden.
