Goldman Sachs Gave $1.6B Adviser 24 Hours to Accept Forced Retirement or Be Fired, Arbitration Filing Says

Filing describes broader pattern of forcing out senior advisers and retaining client assets

SAN FRANCISCO--(BUSINESS WIRE)--A veteran Goldman Sachs advisor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim alleging the firm engaged in age discrimination, wrongful termination, and unlawful withholding of earned deferred compensation after giving him just 24 hours to involuntarily retire or be fired.

The claim, filed by San Francisco-based advisor Don Lavi, alleges that Goldman Sachs terminated the 63-year-old advisor after nearly two decades with the firm despite strong performance and favorable reviews. According to the filing, Mr. Lavi managed a book of business totaling approximately $1.6 billion, including roughly $1.2 billion in assets under management.

The arbitration alleges that Goldman presented Lavi with a “take it or leave it” ultimatum -- retire immediately and sign a release of all claims or be fired in 24 hours. When Mr. Lavi requested additional time and information, and complained of age discrimination, the firm terminated him days later, according to the claim. When Mr. Lavi asked HR to see the release and severance documents before making such a life-changing decision, Goldman’s HR professional refused. Rogge Dunn, counsel for Mr. Lavi, asks, “If Goldman had nothing to hide, why did it ‘hot box’ him, forcing him to decide on retirement without disclosing the retirement documents?”

Arbitrator Patrick McShan, also counsel for Mr. Lavi, noted that “Forcing out older advisors, restricting their ability to communicate with clients and then moving quickly to capture their client relationships raises serious questions about fairness and legality.”

“Mr. Lavi was fired while younger, similarly situated financial advisors with the same or lower performance metrics remain employed with GS,” said Rogge Dunn. The filing further describes what it characterizes as a broader pattern of similar conduct affecting older advisors.

The filing also references internal communications in which firm personnel discussed strategies to “gang tackle” a departing advisor’s clients, suggesting a coordinated effort to preserve assets under management. The claim contends that these practices are part of a wider approach to transition client relationships away from senior advisors and into the hands of remaining teams.

According to the claim, Goldman Sachs unlawfully forfeited more than $1 million in deferred compensation owed to Mr. Lavi. The filing contends that these practices violate federal law, including ERISA, as well as California labor laws governing earned wages.

The Rogge Dunn Group is asking anyone who has seen Goldman Sachs discriminating on the basis of age or treating older employees unfairly to contact them at [e-mail] with information that could be helpful to Mr. Lavi.

Rogge Dunn Group is well known for successfully trying high-profile business, financial and employment disputes. Based in Dallas, the firm tries cases in state and federal courts in Texas and throughout the United States. Learn more about the firm at www.roggedunngroup.com.