Financial planner sues over dismissal

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This article was published 04/05/2012 (5123 days ago), so information in it may no longer be current.

A successful and popular local financial planner who claims he was forced out of work earlier this year is suing National Bank Financial.

Doug Warkentin, who was let go from two financial investment firms in a span of seven months, had been a star broker and financial adviser with Wellington West until that company was bought by National Bank Financial last summer.

Warkentin is asking the court to issue an injunction against National Bank Financial, prohibiting its staff from attempting to lure away his clients, and for unspecified general and punitive damages for alleged actions taken against him.

The allegations have not been proven in court. National Bank Financial has not filed a statement of defence.

A spokesman for National Bank Financial said the firm would not comment on the legal action.

Warkentin alleges two senior Wellington West officials told him in July 2011 that National Bank didn’t want him and he either had to resign or he would be fired on the first day the merger took effect.

He alleges in a July 2011 meeting with Dennis Stewner, who was then Wellington West’s chief financial officer, chief operating officer and president of its private client division, and Jonathan Kroft, Wellington West Holding’s former executive vice-president and chief legal officer, he was told if he signed a letter of resignation and a separation agreement, Wellington West would not allow its brokers to attempt to lure away his clients after he left.

Warkentin said he also agreed to return his shares in Wellington West without any financial compensation, alleging Stewner and Kroft told him only employees could hold shares.

Stewner stayed on after the merger, running National Bank Financial’s Winnipeg operation and assuming the title of managing director for individual investor services. Kroft left Wellington West to rejoin his old law firm, Aikins, MacAulay & Thorvaldson.

Warkentin alleges National Bank Financial was aware of, approved or authorized the actions of Stewner and Kroft, but if not, then as the successor firm to Wellington West, it is responsible for their actions.

In March, Warkentin sued the local office of BMO Nesbitt Burns and its senior official, claiming it hired him in August solely with the intent to steal his clients and then fired him without cause in January.

In the BMO Nesbitt Burns action, Warkentin also stated he was facing an investigation by an industry regulatory agency for falsifying personal financial documents.

The Manitoba Securities Commission said Warkentin’s registration to trade securities was suspended following his termination by BMO Nesbitt Burns. Before that, however, the securities commission had imposed conditions on his registration in late December 2009 that required his employer, Wellington West, to strictly supervise his activity.

In his current action against National Bank Financial, Warkentin said even though he returned his shares in Wellington West, the company issued him a T4 slip in April showing he received almost $1.67 million for the company shares, adding he believes Canada Revenue Agency will expect payment of a substantial sum for what was presented as a capital gain.

Warkentin is also asking the court to invalidate the T4 slip.

aldo.santin@freepress.mb.ca