Merrill Lynch, the investment firm, hired Elliot Jarvin as Director of Wealth Management Services.
His duties included managing a team of 10 wealth managers who advised Merrill Lynch clients regarding their investment portfolios. When Jarvin joined Merrill Lynch, he brought with him 15 very wealthy clients to whom he provided investment services on behalf of Merrill Lynch. Unknown to Merrill Lynch, Jarvin had five additional clients, the five wealthiest of his clients. Jarvin continued to advise these clients on his own, retaining for himself all fees he charged for services provided to the five clients. In addition, to help him service the five personal clients, two members of his Merrill Lynch wealth management team frequently met with Jarvin's five personal clients to create investments plans for them. Has Jarvin breached a fiduciary duty owed to Merrill Lynch?