Mariner CEO Personally Called Planner, Edelman Says in Poaching Suit

"At EFE, we’re committed to investing in innovation, helping our planners grow successful practices, and being the premier destination to build a lifetime career. Unfortunately, some competitors resort to deceptive and illegal tactics to take our people and clients. We are confident in the strength of our case and will continue to litigate vigorously to protect the security and privacy of our clients' information and the trust that they place in us,” the spokesperson said.

Mariner did not respond to a request for comment on Tuesday.

Trade Secrets

The complaint states that Mariner has renewed its "flagrant and ongoing efforts to misappropriate Edelman’s trade secrets, tortiously interfere with Edelman’s contracts and business expectations, and steal the fruits of Edelman’s multimillion dollar investments in marketing and client goodwill."

Mariner "has also knowingly procured multiple breaches of the Departed Edelman Planners’ employment agreements, which required them to keep Edelman’s client information confidential, and prohibited them from soliciting and accepting business at Mariner from the Edelman clients they serviced," the suit contends.

Through these and other unlawful efforts, "Mariner has procured hundreds of breaches of contract" by Edelman planners and has caused the departure of at least 851 Edelman clients representing over $621 million in assets under management, according to the suit.

(Edelman Financial Engines is the product of a merger in 2018 between Edelman Financial Services, founded in 1986, and Financial Engines, founded in 1996.)

The amended complaint points to former Edelman planner Michael Horne, whom Bicknell "personally called" to recruit to Mariner.

"Mariner recruited Horne and solicited him to leave Edelman and move the Edelman Clients he was servicing and their AUM to Mariner," the lawsuit states. Horne abruptly resigned in July 2021.

"Mariner’s recruitment process was calculated to ensure Mariner received Edelman’s trade secrets, including but not limited to the identities of Edelman clients and their assets under management, both before and after offering employment to Horne," according to the suit.

Before Horne received an offer letter from Mariner, "he signed a 'Confidentiality Agreement,' completed a 'Due Diligence Questionnaire for Lift Outs,' and provided Mariner a copy of his Non-Solicitation Agreement with Edelman," the suit states. "Based on its review of Horne’s agreements with Edelman, Mariner provided advice to Horne on how to position himself to best defend a lawsuit from Plaintiffs for breach of the Non-Solicitation Agreement."

While at Edelman, Horne was able to "access and utilize Edelman’s proprietary market analyses and investment strategies to develop client goodwill, advise clients and otherwise carry out his duties on behalf of Edelman," the suit states. "Edelman also paid for business expenses to help Horne develop, maintain, solidify, and expand customer relationships and goodwill on Edelman’s behalf."

The amended suit also contends that along with the non-solicitation agreement, "Mariner offered Horne a significant additional compensation package that directly incentivized him to solicit and accept business from the Edelman clients he had been servicing immediately upon joining Mariner."

The amended suit also points to John Geilfuss, who began working for Edelman’s predecessor Edelman Financial Services LLC in 2018 and worked for the firm until his abrupt resignation on May 9, 2023.

"Mariner recruited Geilfuss and solicited him to leave Edelman and move the Edelman Clients he was servicing and their AUM to Mariner," the suit states. "Mariner’s recruitment process was calculated to ensure Mariner received Edelman’s trade secrets, including but not limited to the identities of Edelman clients and their assets under management both before and after offering employment to Geilfuss."

Before Geilfuss received an offer letter from Mariner, he signed a “Confidentiality Agreement” and completed a “Due Diligence Questionnaire for Lift Outs.”

"The use of the term 'lift outs' conveys Mariner’s desire to 'lift out' Edelman clients," the suit states.

The questionnaire, which Geilfuss completed, "directly asks Geilfuss to disclose Edelman trade secrets including the 'financial plan' for clients Geilfuss was servicing and Edelman’s 'investment modeling' for those clients," according to the suit. "Upon information and belief, Mariner required all the Departed Edelman Planners to fill out such a form."

Based on the data provided in the questionnaire, "Mariner determined a compensation package for Geilfuss that was sized on the assumption that Geilfuss would, with Mariner’s participation and assistance, solicit the Edelman clients Geilfuss was servicing to move their business with him to Mariner," the suit states.

The complaint further states that Mariner and Geilfuss "conspired to convey Edelman’s trade secrets and proprietary client information to Mariner, "evidenced by the screenshot Geilfuss took of the Edelman BRAC Report and sent to Mariner. The BRAC Report contains information related to the investment positions of Edelman clients that are serviced by a named planner and the fees Edelman charges to these clients."

Despite a statement that the information is confidential and is intended solely for the named planner, while still employed at Edelman, "Geilfuss pulled up the BRAC Report from the Edelman server on his Edelman-issued computer and took a picture with his cell phone, which he ultimately sent to Mariner via email," the suit states. "Upon information and belief, Mariner determined a compensation package for Geilfuss based upon the confidential and proprietary information in the BRAC Report."

Pictured: Mariner CEO Marty Bicknell