The Financial Industry Regulatory Authority, Inc. (FINRA) has ordered Trustmont Financial Group, Inc. to pay one of their clients over $1 million in damages.
The client had accused Trustmont Financial Group of breach of fiduciary duty, fraud and negligence. This case was related to two 1035 annuity exchanges and a private real estate investment trust (REIT). The client requested damages of approximately $500,000.
Trustmont Financial Group has denied all allegations.
Trustmont Financial Ordered To Pay Damages
Trustmont Financial Group was ordered by FINRA to pay the client $848,002.31 in compensatory damages and $100,000 in punitive damages. Trustmont is also liable for costs and attorney fees of $15,596 and $82,500 respectively, with the award totaling, $1,046,098.31.
According to the FINRA regulatory action against Trustmont, some of the allegations were: failure to inspect and register branch offices, failure to retain business emails, failure to supervise a representative’s radio program content, failure to supervise their representatives use of consolidated reports, and failure to supervise transactions regarding Unit Investment Trusts (UITs).
Trustmont Financial Group, headquartered in Greensburg, Pennsylvania, has been a FINRA member since 1986. Nationwide they have approximately 65 branch offices with 120 registered representatives.
If you suffered investments losses due to the actions or recommendations of broker/dealer, Trustmont Financial Group, Inc., contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and we operate on a contingency fee basis—no fee to you if no recovery.