A former Charles Schwab investment consultant is suing the firm, saying he was forced to resign, given a negative mark on his Form U5 and replaced by a younger employee.
In a lawsuit filed in Superior Court of New Jersey, Middlesex County, Victor Kossowicz maintains that despite having positive net asset flow during 2022-2023, he was terminated in July 2024 after receiving performance warnings, with his position subsequently filled by a significantly younger employee.
Kossowicz was a senior financial consultant at Schwab. In November 2019, TD Ameritrade announced it was to be acquired by Schwab.
Shortly thereafter, Kossowicz was terminated along with many other TD employees, the suit states.
On or around April 2021, Kossowicz was rehired by Schwab to be a senior financial consultant in their Marlton, New Jersey branch.
At this time, Kossowicz was hired by Branch Manager Charles Morlock. During the years 2022-2023, Kossowicz "had a positive Net Asset Flow despite the effects of the COVID-19 pandemic," according to the suit. On or around November 2023, Morlock was terminated by Schwab.
Shortly thereafter, Christopher Nixon was named manager of the branch.
Immediately after becoming branch manager, "Nixon began to discriminate against the older employees by giving written warnings" to Kossowicz and two other employees, according to the suit.
On or around May 21, 2024, Kossowicz had a meeting with Nixon and Assistant Branch Manager Mark Heusinkveld, during which Kossowicz "was given a warning for alleged poor performance," the suit continues. When Kossowicz "questioned if those who performed worse than him were given warnings he was told 'we’re not talking about anyone else.'”
Nixon also informed Kossowicz during the meeting that "no one he has given a warning to for poor performance has improved," according to the suit.
Kossowicz informed Nixon and Heusinkveld that "he would improve his metrics by focusing on their goals."
However, Kossowicz was told if he did not resign, his U5 form "would be marked with a negative reason for his termination," which "would make it very difficult" for Kossowicz to find a future position.
Kossowicz informed the two that he could not resign "as he could not afford it and would need the unemployment benefits that would only be issued if he was terminated."
During the ensuing weeks, Kossowicz met with Heusinkveld "who seemed to be happy" with his performance, the suit states.
On or around July 3, 2024, Kossowicz had a follow-up meeting with Nixon and Heusinkveld and was "again told to either resign or face termination with a mark on his U5."
Nixon informed Kossowicz that he had two weeks to make a decision.
On or around July 11, 2024, Kossowicz had another meeting with Nixon and Heusinkveld. During the meeting, Nixon reiterated that if Kossowicz "did not resign it would be difficult for him to seek new employment with the negative mark" on his U5.
Kossowicz "explained that he was looking for different employment, but could not speed up the process as he needed time," the suit continues. He was then terminated by Nixon.
On or around July 19, 2024, Kossowicz called Schwab seeking a reason for the negative mark on his U5 form. "The HR representative explained that it was due to 'Performance – Non-Sales Practice Related,'" which meant that he was not terminated for illegal practices.
Kossowicz's position was then posted online by Schwab and Eric Imhof, an individual significantly younger than him, was hired into his position.
Since his termination, Kossowicz "has had difficulty finding new employment due to the bogus negative mark" Schwab placed on his U5 form, the suit contends.
Schwab has not responded to a request for comment.
Credit: Diego Radzinschi/ALM
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