Schwab Says Ex-Advisers Diverted $47M In Accounts To Rival

By Jeremy Heallen (March 13, 2013, 10:22 PM EDT) -- Charles Schwab & Co. Inc. on Wednesday launched a suit in Texas court against former employees it claims violated nonsolicitation agreements by using confidential client information to divert accounts worth $47 million to Clarity Financial LLC before going to work for the competitor.

The brokerage house claims that two of its former consultants, Richard Rosso and Mark Blom, resigned last year to join Charles Schwab alumni Connie Mack Jr. at his investment firm Clarity, but not before the trio conspired to poach high net worth clients.

"As a consequence of Blom's and Rosso's conduct, coupled with the assistance and encouragement provided...

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