LPL-Affiliated firm sues former advisor, Cetera for soliciting clients, stealing data. Wochnick Financial Services accused former employee Andrew Koetter of breaching noncompete terms and taking client data before joining Cetera, with 19 accounts reportedly lost so far. October 29, 2026 Want a quick summary? An LPL-affiliated firm is suing one of its former employees (and his new employer, Cetera), alleging he breached his employment contracts by soliciting clients and using confidential information. Wochnick Financial Services filed the injunction request in Minnesota state court this week against Andrew Koetter (as well as the newly established Koetter Financial Services) and Cetera, where SEC records indicate he registered in late September. According to court documents, Wochnick Financial Services is based in Little Falls, Minn., and is led by Michael Wochnick, a registered rep with LPL Financial. Koetter began working with Wochnick as a "loaned employee" through Focus Financial Network in 2021 and became a direct employee in April 2024. In July 2025, Koetter allegedly signed agreements with Wochnick that barred him from using confidential client information and prohibited him from soliciting former clients for five years after his employment at the firm ended. But Wochnick said Koetter took steps to prepare his competing practice while still employed at the firm. On June 8, Koetter allegedly emailed LPL with questions about his onboarding contract, and he was contacting some of Wochnick's larger clients in the weeks before his resignation to "check in." Additionally, shortly after Wochnick Financial vacated its former office in Sauk Rapids in May, Koetter contacted the building's owners to lease the same space for his own use. On Sept. 21, the firm alleges Koetter submitted a letter of resignation when Wochnick was out of the country, asking that clients inquiring how to reach him contact him at Cetera, while stressing that he would "continue to abide" by his prior obligations, and that he had no confidential information or data. During a phone call that day, Koetter explained he was leaving because "he felt treated too much like an employee and not a future owner," but allegedly reiterated he wouldn't violate the employment agreements. But Wochnick claims Koetter tried to solicit clients almost immediately, and moved back into Wochnick's old space, allegedly without putting any of his own signage up; Wochnick alleged that the use of a similar name to his former firm, as well as the lack of signage, could make former clients think he remained affiliated with Wochnick. Wochnick also noted that Koetter obtained a financial services license in Indiana immediately after leaving his former firm, and speculated that Koetter did so to continue working with two of Wochnick Financial's larger clients in Indiana. To date, Wochnick said at least 19 clients have moved their accounts. Wochnick also said that Koetter accessed client files after his resignation, claiming that numerous client Income Projection files were marked "Modified by: Andrew Koetter" in dates after he left the company, and that the clients match those who later left. A Cetera spokesperson said the firm "does not comment on legal matters." Representatives from LPL did not return a request for comment. In the filing, Wochnick asks the court to mandate a halt to any alleged client solicitation and to the use of the firm's client information by Koetter or Cetera, and to return any allegedly stolen documents and destroy any such information from other devices or accounts. Senior Reporter, Wealth Management Patrick Donachie is a senior reporter for Wealth Management, covering federal and state regulation, litigation and M&A deals in financial services. Patrick was born in Staten Island, and now lives in Brooklyn, N.Y.

Former Cetera advisor pleads guilty to fraud for multi-year cherry-picking scheme. Last Modified on Oct 26, 2026 A former advisor for Cetera accused of defrauding his investment advisory clients has pleaded guilty, according to a report by WealthManagement. Prosecutors said William Carleton engaged in a multi-year scheme of 'cherry-picking' in which he systematically allocated profitable trades to himself and unprofitable trades to his clients, thus gaining millions of dollars at the clients' expense. Carleton pleaded guilty in federal court in New York to securities fraud and faces a maximum sentence of 20 years in prison. "Investment advisers are required to act with integrity and put their clients' interests ahead of their own," said U.S. Attorney Jamie McDonald. "William Carlton instead admitted to systematically steering profitable trades to himself while leaving losing trades for his clients. Today's guilty plea holds him accountable for abusing that trust for personal gain." Carleton served as an investment adviser to over 50 clients each year. The cherry-picking allegations cover the period from at least January 2015 through August 2022. The U.S. Attorney said that Carleton would purchase securities in his personal trading account and observe price movements during the trading day. When the price of a stock increased during the day, Carleton would sell the stock the same day and keep the profits for himself. But when the price went down, he assigned the stock to his clients' accounts. Investigators learned that about 70% of the trades Carleton assigned to his own accounts experienced same-day gains while only approximately 16% of the trades he assigned to his clients' accounts experienced same-day gains. Conversely, only approximately 30% of the trades assigned to Carleton's own accounts experienced same-day losses. At the same time, approximately 84% of the trades he assigned to his clients' accounts experienced same-day losses. The scheme resulted in about $6 million in ill-gotten gains for Carleton while imposing losses on many of his clients, authorities said. When confronted by the SEC about his conduct, the U.S. Attorney said Carleton falsely denied that he had ever made trades in his personal account and later reassigned them to his clients' accounts, claiming falsely that he placed all client trades individually and directly in each client's account. The SEC began investigating Carleton in 2022, and he was fired by Cetera the following year due to "inappropriate trading practices." A Cetera spokesperson said that "upon learning about this issue, Cetera acted promptly to cease the activity and previously terminated this individual's affiliation with Cetera. We have enhanced our processes to prevent any similar actions in the future. Cetera has fully cooperated with the SEC and the United States Attorney's Office and will continue to do so as they pursue actions against this individual." In 2024, the SEC brought charges against Carlton, claiming he'd made millions in "ill-gotten gains" based on his process of cherry-picking trades. Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Its team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through its online contact form for a no-cost evaluation of your matter.

Cetera has signed advisors Tim O'Connell and Peter Hall and their practice, Financial Guide Solutions (FGS), which oversees about $210 million in assets under administration. The Bethel, Connecticut, team joins from MML Investors Services through Cetera Wealth Partners. The team said it left for greater independence. "There were product expectations" at its prior firm, O'Connell said. Cetera stood out for its broader investment choice, including the ability to keep using the same models, and for continuity of clearing through Fidelity's NFS, which eased the client transition. Hall said access to a full range of investment options, rather than a limited set of proprietary models, was a key factor.