Rick Ferri no longer owns or is affiliated with Portfolio Solutions,® the low-cost investment firm he founded and managed for many years. In 2015, private equity investor, James S. Gladney (Jim Gladney) of Naples, Florida, bought an interest in Portfolio Solutions® from a former partner of Mr. Ferri, making Mr. Gladney a co-Manager. Soon thereafter, Mr. Gladney began a harsh campaign of willfully unfair and oppressive conduct designed to push Mr. Ferri out of the Company and usurp his equity and personal property. In addition to reneging on the Operating Agreement and other signed documents, Mr. Gladney engaged in several illegal and unprofessional activities that denied Mr. Ferri access to company books and records. He also began a harsh and untruthful smear campaign designed to harm Mr. Ferri’s reputation among employees while forbidding them from speaking with Mr. Ferri. Mr. Gladney then cut all partner distributions to Mr. Ferri while secretly diverting over a half-million dollars in partnership funds to his personal bank account. Mr. Gladney also attempted to retitle Mr. Ferri’s personal intellectual property to become Mr. Gladney’s property once he ousted Mr. Ferri. Last, Mr. Gladney wrongfully removed Mr. Ferri from the Investment Committee without notifying clients who had hired the Company for Mr. Ferri’s investment insights and leadership while telling clients who requested to speak with Mr. Ferri that he was not available.
Mr. Ferri brought legal action against Mr. Gladney in 2017, and litigation followed. In 2018, a panel of three arbitrators unanimously ruled in favor of Mr. Ferri on all counts. The panel stated that the cumulative result of Mr. Gladney’s series of harmful and illegal actions was to neutralize and isolate Mr. Ferri as a participating member of the firm and to substantially interfere with Mr. Ferri’s interests as an owner. An Oakland County Circuit Court judge confirmed the ruling, and Mr. Gladney was ordered to pay significant damages, return Mr. Ferri’s intellectual property, and buy Mr. Ferri’s interest in Portfolio Solutions® at fair market value.
Gladney renamed the company Liberty Wealth Advisors®, inaccurately changed his title to “Founder,” and sold it to Prime Capital Investment Advisors, LLC, of Overland Park, KS, in 2022.
Supporting documents for these statements are found here: Michigan Lawyer’s Weekly article – Court Order – Arbitration Award. Detailed information on the case is available through Oakland County Circuit Court, Oakland County, MI / Case no. 18-165064-CB / Date: May 23, 2018.