Play Nice Order Given to Dueling LR Investment Advisers

Remember the professional donnybrook between former Merrill Lynch co-workers turned competitors: John Turbeville versus Erin Eason?

A ruling has arrived in their long-running dispute, which hit arbitration with the Financial Industry Regulatory Authority in August 2010.

The professional conduct board denied with prejudice Turbeville’s claim and Eason’s counterclaim and ordered the Little Rock investment advisers to stop the verbal fisticuffs.

"The parties shall cease and desist from talking about the other in any meetings involving their respective clients and prospective clients."

Eason worked with Turbeville on pension fund accounts and became a pesky competitor after leaving Merrill Lynch in December 2008.

After losing some business to Eason, Turbeville lashed out and accused Eason of defamation, tortious interference, conversion and breach of contract.

Eason denied the allegations and filed a counterclaim seeking $100,000 to $500,000 in compensatory damages plus punitive damages, attorneys’ fees and costs.

You might recall the lawsuit-turned-arbitration fight erupted when Turbeville was in the process of losing the City of Jacksonville Policemen’s Pension & Relief Fund as a client.

The board of the $5.8 million-asset pension fund in May 2010 chose to go with Morgan Stanley Smith Barney LLC, where Eason works.

Turbeville even sued the pension fund and the city of Jacksonville over that decision in a Pulaski County Circuit Court case that finally was dismissed in August 2011 from inactivity.

Turbeville was discharged from Merrill Lynch in January 2010 for "Conduct resulting in the loss of management’s trust and confidence." He then joined Concert Wealth Management Inc.

Turbeville signed the June 2010 consent order with the Arkansas Securities Department, paid a $28,000 fine and served a 21-day suspension as an investment adviser.

Among other things, state securities officials said that Turbeville provided unsuitable investment advice, failed to act in the best interest of his clients and failed to observe the high standards of commercial honor and just and equitable principles of trade.

In 2011, Merrill Lynch paid $150,000 to settle a grievance with the Helena Police Pension Fund, another former Turbeville client.

The company signed a consent order with the Arkansas Securities Department for failing to prevent Turbeville from making unsuitable investment recommendations and material misrepresentations and omissions regarding the sale of variable annuities.