NEW YORK Oct 23 JPMorgan Chase Bank on
Thursday accused a New York recruitment agency in a lawsuit of
helping Citadel Investment Group LLC entice executives to leave
the financial institution.
The lawsuit said that The IDW Group LLC broke its contract
with JPMorgan to provide management and executive search
services. The breach of contract included solicitation of
Patrik Edsparr, "one of JPMorgan's most senior and valued
executives on Citadel's behalf."
Filed in U.S. District Court in Manhattan, the lawsuit said
IDW "directly or indirectly solicited, induced, recruited and
enticed multiple JPMorgan employees to leave JPMorgan for
positions elsewhere including at Citadel."
Representatives of neither IDW nor Citadel could
immediately be reached for comment.
Edsparr, who was global head of rates, foreign exchange,
securitized products, fixed-income exotics and hybrids, among
other responsibilities, resigned from JPMorgan in March for
Citadel. The executive had reported directly to Steve Black,
the head of JPMorgan's (JPM.N) investment bank, the complaint
It said from January through March this year, IDW arranged
several meetings between the executive and Citadel's senior
management, including President and CEO Ken Griffin.
"On information and belief, IDW encouraged Edsparr to
accept an offer to become a highly compensated employee of
Citadel," according to the lawsuit.
Edsparr now serves as Citadel's CEO for Europe and head of
global fixed income business.
JPMorgan's complaint said that after Edsparr left, between
April 22 and July 11, five more employees within the investment
bank -- Derek Kaufman, William King, Jorge Picazo, John
Niccolai and John Naud -- resigned to join Citadel.
JPMorgan accused IDW of repeatedly breaching its
obligations under four agreements signed between the two firms
in 2007 and is seeking damages in a trial by jury.
It is also asking the court to prevent the agency from
using or disclosing confidential, proprietary and personal
information and ordering any such information to be returned to
(Reporting by Grant McCool; editing by Carol Bishopric)