USI sues former exec for poaching client, VP

USI Insurance Services Inc. said in a lawsuit filed Wednesday in federal court in Alexandria, Virginia, that its former vice president of employee benefits breached his employment agreement when leaving to join a rival brokerage and proceeded to entice another executive and client to join him.

Valhalla, New York-based USI said in USI Insurance Services Inc. v. Paul Lake, that it will suffer irreparable harm unless the court enters an injunction barring him from continuing to entice other clients and employees to join him at Marsh & McLennan Agency LLC.

Mr. Lake signed an employment agreement when he joined USI in October 2023 that included nonsolicitation and confidentiality provisions effective up to two years after his departure. While at USI, Mr. Lake secured Sequoia Holdings as a client, and the account was expected to generate approximately $100,000 in annual revenue, court records show.

Mr. Lake resigned in November 2024 to join White Plains, New York-based MMA. The following month, USI received notice that Sequoia would be submitting a broker of record, effective Jan. 1, 2025, saying it would be doing business with MMA, court records show.

In February, Josh Waller, USI’s vice president of employee benefits, resigned to join MMA and acknowledged Mr. Lake’s “time and engagement” in a LinkedIn post about his new position.

A spokesperson from USI declined comment.

Representatives for Mr. Lake did not respond to requests for comment.