Mercer Global Advisors has filed a motion to enforce a subpoena from the Capital City Club, an Atlanta social club, in a case the RIA brought against the firm's former advisers last year. Mercer says Capital City did not respond to a subpoena seeking documents related to advisers' activities at the club.
Late last year, Mercer filed a lawsuit against ACG Wealth, a the firm that bought it in 2021, and its founders, Jeffrey T. Shaver and Joseph “Jody” Young. The lawsuit alleges they breached the asset purchase agreement by failing to ensure the retention of key personnel, “instead apparently taking the proceeds from the sale and going to the golf course, specifically Capital City Club,” Mercer alleges. The firm withheld a portion of their earnings due to perceived underperformance.
Mercer also alleged that the two violated their employment agreements with the RIA, saying they failed to respond to e-mail messages, regularly log into the company's computer systems, or attend required meetings and training. They also failed to respond to company executives and bring in new clients or advisors.
The subpoena includes 12 production requests from Capital City, including the men's visits to the club, charges made at the establishment's restaurant or bar and even golf parties.
A spokesman for Capital City did not return a request for comment before publication, nor did an attorney representing Mercer.
“In our view, this is simply Mercer trying to publicly discredit Mr. Shaver and Mr. Young by intrusively trying to get information about them, their family, being members of these clubs,” Scott M. Ratchick said. , a lawyer at Chamberlain Hrdlicka. White Williams & Aughtry representing Shaver and Young.
ACG, Shaver and Young filed counterclaims in excess of $7 million, including claims that Mercer breached the asset purchase agreement and wrongful termination.
“We allege that our clients Jeff Shaver and Jody Young were wrongfully terminated from employment and also that Mercer improperly withheld over $1 million for a frivolous 'damage claim' that has no merit,” Ratchick said. “Mercer is only doing this to hurt our customers.”
“They took actions intended to prevent our customers from earning a significant payout from the profit,” he added. “In particular, they took action to prevent one or more brokers from switching to Mercer. As a result, a significant amount of assets under management have not moved.”
Young and Shaver launched its state-registered investment adviser this year, 34 Financial, in Watkinsville, Ga., according to regulatory filings.