Baird told to pay $23 million

Firm accused of raiding employees

Robert W. Baird & Co. has been told to pay more than $23 million to Wells Fargo Advisors to resolve a case in which Baird hired away Wells Fargo financial professionals to open a new wealth management office in Wichita, Kan., in 2015.

An arbitration panel for FINRA, the self-regulatory body for the investment industry, ruled Friday that Baird should pay Wells Fargo almost $10.9 million in compensatory damages and another $10.9 million in punitive damages for its alleged raid of the Wells Fargo office. In addition, Baird was liable for $1.75 million in attorneys’ fees, FINRA said.

FINRA also ordered some of the former Wichita Wells Fargo financial advisers who joined Baird to pay damages: Donald Barry, $542,632 in compensatory damages; Brian Docking, $161,314; Jill Docking, $181,112; and Kevin McWhorter, $114,942.

A detailed complaint by Wells Fargo isn’t available publicly, FINRA said. However, the dispute resolution award document says Wells Fargo Advisors alleged unfair competition, breach of contract, breach of fiduciary duty, conspiracy, violation of FINRA rules of conduct and unjust enrichment among other accusations. Baird, which is based in Milwaukee, took issue with the arbitration panel’s decision, and with the damages levied.

“We strongly disagree with what is asserted in this situation and with the findings and are extremely disappointed in the size of the award,” Baird spokesman John Rumpf said by email.

Beyond that, he said, Baird does not comment on legal matters.

One of the three members of the FINRA arbitration panel dissented with the finding of punitive damages, while concurring with all other aspects.

Rumpf added: “In terms of potential impact on our financial results, we will have record revenues for 2016 and expect operating income in 2016 to be in line with 2015, which was a record year.”

In June 2015, Baird announced in a news release that it had added 10 wealth management professionals — including six financial advisers — and had opened a new office in Wichita.

Baird said the group of advisers all had once worked for A.G. Edwards, and were most recently with Wells Fargo Advisors, overseeing $1.1 billion in client assets.

Barry was managing director of the office. Jill Docking, Brian Docking and McWhorter were named as senior vice presidents.