Financial Advisor Richard Powell Sues Janet (Kemp) Francek and Eric Nichols on Multiple Counts Including Fraud and Conspiracy

TROY, Mich., March 4, 2020 /PRNewswire/ -- Richard Powell, one of metro Detroit's most respected investment professionals, has filed a multi-count lawsuit in Oakland County Circuit Court against former associates Janet (Kemp) Francek and Eric Nichols, jointly and severally. The suit alleges breach of fiduciary duty, unjust enrichment, fraud based on false representation and failure to disclose facts, and conspiracy, among other things. Powell is seeking monetary damages, among other forms of relief. Attorney Norman A. Yatooma, principal of The Yatooma Law Firm, P.C., is representing Powell.

The defendants were longtime support staffers of Powell's financial advisory practice, based in Troy and part of a financial services firm owned by a major U.S. bank. In the wake of an ongoing controversy at the firm, fueled by highly publicized scandals at the bank, Powell, Francek and Nichols agreed and planned over a period of two years to resign in concert from the firm and transition Powell's practice — Powell Consulting Group — to the Troy branch of Ameriprise Financial, an independent financial services firm and Fortune 500 company.

This legal action is a result of the failure of the defendants to honor this agreement following Powell's resignation in April 2019 from the previous firm and the defendants' ensuing campaign against Powell. The defendants' alleged actions include violation of professional duties, disclosing confidential information, concealing material information, raiding Powell's clientele, and disparaging Powell to his clients in order to obtain financial gain. Francek and Nichols remain employed at the previous firm, where they continue to interface with clients and the public.

Francek and Nichols allegedly misled Powell's clients into believing that Powell had retired or abandoned his clients and them. As a result, many of Powell's clients terminated their relationships — in some cases, decades-long relationships — with him, causing Powell significant damages in an amount to be proven at trial.

"The defendants conspired against Powell and never intended to transition to Ameriprise with him. In fact, their intent was to wait until Powell resigned and was out of the building to withhold client information, disparage him to his clients, attempt to destroy a 40-plus-year career, and cause him millions in damages," Yatooma said.

The allegations detailed above can be found in a copy of the lawsuit and downloaded at: https://courtexplorer.oakgov.com/OaklandCounty (case number 2020-179885-CZ)

SOURCE Powell Consulting Group