Bank of America filed a complaint in NY state court charging former financial advisor Michael Brown and 3 others with trying to use records from the bank's U.S. Trust unit at their new employer, Dynasty Financial.   The court temporarily blocked the 4 from using and sharing U.S. Trusts's client records at their new firm.  The employees claimed in their resignation letters that they were allowed to take the records under a voluntary recruiting agreement among brokers, according to the complaint.  A spokesperson for Dynasty Financial said the firm was "pleased that the judge denied Bank of America's request to prevent Brown and his team from continuing to advise clients that want to work with them.”

Michael Brown a big player at BofA with $5.9 billion under management, is blocked from “using or disclosing in any manner the customer lists and any other property or trade secret information taken at the time” of their resignation from U.S. Trust, according to a copy of the order signed by Justice Melvin Schweitzer and provided a BofA spokesperson.  The temporary order directs the former employees to, pending a hearing, return customer lists and any other property to U.S. Trust.  It also blocks them from “soliciting, inviting, encouraging, requesting” customer accounts that may have been “wrongfully solicited,” according to the filing.

In addition to Brown, the suit names as defendants Dynasty Financial, Charles Britton, Marcus Wilson and Amanda Kerley.   Dynasty Financial, which offers technology and services for independent advisory firms, was founded by ex-Citigroup managers Todd Thomson and Shirl Penney.  

Mr. Brown's move to Dynasty ranks as the 3rd largest team to change firms in 2010, according to InvestmentNews data.  [Bloomberg, Investment News, 12/10]