Charles Schwab Accuses Former Consultant of Poaching Clients

A former financial consultant for Charles Schwab & Co. misappropriated trade secrets to solicit high net worth clients for his new employer, according to a new federal lawsuit.

Alfredo Martinez worked in Schwab’s New Orleans branch. Schwab’s business model differs from that of many other securities brokerage firms in that financial consultants like Martinez don’t develop a “book” of business through cold calls, marketing efforts, or his own connections, according to the complaint. Instead, Schwab provided him with access to extensive client records and information, including transactional histories, account types and balances, income, liquid and total net worth, and ...