A second lawsuit in one week has been filed against Advocis, this one by Huntsville, Ont.–based SeeWhy Financial Learning Inc. The claim comes just days after Net-Patrol International Inc. in Burlington, Ont., filed a suit against the association on Feb. 21. Advocis has faced five claims in the past 14 months.
The association sent two emails to members this week acknowledging the latest claims and informing members that the association also faces a human rights complaint.
The Advocis board has “become aware of an Ontario Human Rights Commission complaint brought forward against Advocis relating to alleged conduct during the tenure of the former interim CEO,” said Al Jones, Advocis board chair, in an email to members on Thursday.
Ontario’s Human Rights Code prohibits discriminatory actions based on factors such as age, race and sex in employment and in membership in professional associations, among other areas.
“Legal counsel has been retained to represent Advocis in connection with this matter,” Jones’ email said. “Advocis takes allegations of discriminatory treatment of employees seriously and [is] addressing this matter with appropriate care and diligence.”
Harris Jones was interim CEO from September 2023 to September 2024, and Al Jones’s reference to him in the email was to make clear that the human rights complaint didn’t arise under the new CEO Kelly Gorman. Harris Jones took the helm the same month longtime CEO Greg Pollock was ousted as the association struggled with liquidity. Pollock was 68 at the time.
Harris Jones did not respond to a request for comment.
Pollock sued for wrongful dismissal in December 2023. The dispute was settled in November 2024, along with a claim of wrongful dismissal from former chief operating officer Julie Martini.
In his email to members on Thursday, Jones said Advocis’ top priority was rebuilding member confidence by demonstrating stronger financial oversight, clearer communication and meaningful progress on issues that matter to members.
During a fireside chat on Monday, Gorman told members she was committed to more “robust” communication with the chapters, including about the association’s finances.
In an email on Tuesday, Gorman directed members to an Investment Executive report on a breach-of-contract lawsuit filed by Net-Patrol International Inc., in keeping with a commitment “for broader transparency,” she said. She reiterated Advocis’ stance that the claim is without merit and contained “several factual inaccuracies” that would be addressed formally.
SeeWhy seeks punitive damages for contract breach
The SeeWhy claim is against the association and Advocis Learning Centre (ALC) for punitive damages of $250,000 or an amount set by the court. The claim alleges breach of the service agreement with SeeWhy by failing to provide SeeWhy’s learning materials on the ALC platform and in other instances, negatively affecting SeeWhy’s fees.
SeeWhy settled a similar claim with Advocis in 2024.
“Advocis leverages the SeeWhy brand to attract clients but then arbitrarily redirects them to ALC to avoid payment to SeeWhy,” the claim, filed on Monday with the Ontario Superior Court of Justice in Brantford, Ont., states. Advocis is “damaging the SeeWhy brand by inconsistently granting, withholding or revoking student access, leading to inquiries and complaints directed at SeeWhy.”
In his email to members on Thursday, Al Jones said, “The board has retained litigation counsel to defend both actions [from SeeWhy and Net-Patrol], which it currently considers to be without merit.”
ALC was incorporated as a federally registered nonprofit organization on May 15, 2024, and shares two directors with Advocis: Ejaz Nadeem, Advocis’ treasurer, and Sara La Gamba, chair of the Institute, Advocis’ educational arm.
“SeeWhy alleges that Advocis is trying to circumvent its obligations by incorporating a non-arm’s-length entity that shares a similar name and website URL, common directors and the same business location, logo and phone number,” Dennis Touesnard, counsel for SeeWhy and partner with Waterous Holden Amey Hitchon LLP in Brantford, Ont., said in an emailed statement. “SeeWhy alleges that this approach is oppressive to it.”
Further, “This is the second time my client has been forced to file a claim in order to secure payment,” Touesnard said. “While SeeWhy was reluctant to resort to legal action, Advocis’ recent conduct warranted bringing another lawsuit.”
Touesnard said in his statement that “Advocis is an organization that purports to represent financial advisors and champions a strict professional code of conduct for its members, as seen on its website. SeeWhy expects Advocis to uphold the same standards internally.”
Advocis will have an opportunity to defend the action’s allegations, Touesnard said. “However, we remain confident that the court will recognize the merits of our claim and rule in our favour.”
In his email to members on Thursday, Al Jones said he understood that members want details about the claims. “However, as these matters are currently before the courts, it is inappropriate for us to provide further comment at this time.” Advocis’ response to the claims “will be made clear in statements of defence, which will be filed with the court in due course,” Jones said.