In August 2018, a FINRA arbitration panel ordered Trustmont Financial Group, Inc. to pay a former client more than $1 million in damages. According to the claim, Trustmont requested $500,000 in damages regarding breach of fiduciary duty, committing fraud and negligence in a case related to two 1035 annuity exchanges and a private real estate investment trust.
The causes of action included violation of Florida’s Securities and Investor Protection Act § 517.011 et al; breach of fiduciary duty; common law fraud; failure to supervise; suitability; negligence/negligent misrepresentation/omission; breach of contract; restitution; and negligent supervision. The causes of action relate to two 1035 annuity exchanges and a private Real Estate Investment Trust (REIT). The FINRA arbitration hearing was conducted in Tampa, Florida.
Trustmont was ordered to pay the former client $848,002.31 in compensatory damages and $100,000 in punitive damages, as well as costs and attorney fees of $15,596 and $82,500, for a total award of $1,046,098.31.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Trustmont Financial Group, Inc. may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.