Edward Jones Wins $4.8 Million Award in Dispute With Ameriprise

An arbitration panel has ordered Ameriprise and one of its advisors to pay Edward Jones nearly $4.8 million to resolve allegations relating to the advisor’s transition between the firms. Edward Jones claimed that the advisor, Cory Clem, conspired with Ameriprise to steal trade secrets and solicit clients as he was planning to leave Edward Jones for Ameriprise.

Edward Jones claimed that advisor Cory Clem conspired with Ameriprise to steal trade secrets and solicit clients as he was planning to leave Edward Jones for Ameriprise. Photo: Courtesy of Edward Jones

Ameriprise and Clem denied the allegations and filed counterclaims, accusing Edward Jones of misconduct and interfering with Clem’s clients. The arbitration panel, convened by Finra, the brokerage industry’s self-regulatory organization, rejected the counterclaims.

Ameriprise took issue with the ruling, but a spokeswoman declined to say whether the firm will challenge the award in court.

“We disagree with the outcome of this matter,” Ameriprise says. “We remain focused on supporting advisor transitions in a manner consistent with industry standards and obligations while providing an exceptional client experience.”

Clem, who is based in Macomb, Ill., didn’t immediately respond to a request for comment. He is a 16-year industry veteran who began his career as a broker and investment advisor with Edward Jones in 2010, according to the online database BrokerCheck.

Clem’s record shows that Edward Jones discharged him in January 2023, citing “concerns regarding misuse of client information and failure to be forthcoming during an internal review relating to the same.”

In its complaint before the arbitration panel, Edward Jones alleged that from October 2022 to January 2023, “while still an employee of claimant, Clem—working in concert with Ameriprise—attempted to misappropriate claimant’s trade secret information, solicit claimant’s clients, encourage claimant’s employees to leave and join Ameriprise, and open a competing business in the same town as the claimant’s branch Clem was operating.”

Edward Jones brought claims of misappropriation of trade secrets, breach of contract, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, tortious interference with contract, and civil conspiracy.

The panel issued an award of just under $4.77 million, including compensatory and punitive damages and fees.

“The decision affirms our position and sends a clear message that the protection of client relationships, confidential information, and fair competition matters,” Edward Jones says. “Edward Jones remains steadfast in its commitment to safeguarding the trust our clients place in us and will continue to take appropriate action to protect our clients, associates, and the firm when necessary.”

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