Indianapolis-based Sanctuary Wealth has fired founder and CEO Jim Dickson for good reasons, but its financial advisory firm has not disclosed why.
Sanctuary announced last month that it has appointed current director Adam Malamed as CEO with immediate effect. That announcement did not include any mention of Dixon.
Malamed previously served as Chief Operating Officer and Director of Ladenburg Thalmann, a network of wealth management and other financial services firms with 4,500 financial advisors, approximately $200 billion in client assets and an enterprise value of $1.3 billion. I was.
The CEO announcement comes a day after Sanctuary issued a press release, with Dickson announcing that the company has opened an office in New York City. This release included a photo of Dixon and other Sanctuary executives at the ribbon cutting.
Then, on March 3rd, Sanctuary filed Form U5. This is a disclosure that financial industry regulators require companies to file within 30 days of an individual leaving the company.
Sanctuary spokesman Donald Cutler said in response to IBJ’s inquiry that the board had good reasons to remove Dixon from the CEO role and from the board, but did not give specific reasons. didn’t reveal.
“We do not discuss the status of their termination with former employees, nor are we able to provide additional information beyond regulatory filings,” Cutler said in an email. “Regardless of the circumstances surrounding Jim Dixon’s dismissal, this CEO transition has come from a strong position. Sanctuary continues to grow, is well capitalized and is in the strongest financial position in its history. Over the past 30 days, Sanctuary completed a smooth and seamless CEO transition and embarked on the next phase of our growth vision to continue to prioritize the success of our partners above all else.”
Dixon’s attorney, Bryan Hamburger of New Jersey-based Hamburger Law Firm, also declined to disclose why Dixon was fired.
“A month ago, Mr. Dixon was asked to leave the company he proudly founded,” Hamburger wrote in an email. He took seriously his duty to serve the interests of all stakeholders and vehemently denied allegations to the contrary. I wish the team and the partner firm continued success.Like many entrepreneurs in the industry these days, he has ceded control to a well-capitalized investor.This experience has taught him a great deal. There are many constructive lessons learned in , and although Jim is currently unable to participate in the dialogue, he looks forward to the opportunity to share them with his many supporters.
Dixon founded Sanctuary in 2018 after acquiring Indianapolis-based David A. Noyes & Co., which changed its name to Sanctuary Securities Inc. in 2020.
Italy-based Azimut Group will acquire 55% ownership of the Sanctuary in 2021. In May, Sanctuary received his $175 million investment from New York-based Kennedy Lewis Investment Management, a financial firm partially owned by Azimut.
Sanctuary Wealth has grown aggressively since its inception, and its network now includes partner companies in 28 states with cumulative assets of $25 billion.
Sanctuary Wealth’s subsidiaries include Sanctuary Advisors LLC, an investment advisory firm. Broker-dealer Sanctuary Securities Inc. Sanctuary Insurance Solutions LLC; Sanctuary Global Family Office LLC; Sanctuary Commercial Loan Group LLC.
In 2021, regulators condemned the company and ordered it to pay more than $530,000 in fines and damages as part of a settlement agreement for alleged rule violations at the company. The alleged violation occurred while the company was operating as David A. Noyes & Co.