Pennsylvania Brokerage Firm, Trustmont Financial Accused of Breaching Fiduciary Duty
According to a FINRA award posted on FINRA’s site this week, investor James E. Grimes accused Trustmont Financial Group Inc. in Greensburg, PA of breaching fiduciary duty in a case related to two annuity exchanges and a private REIT.
The Financial Industry Regulatory Authority Inc. (FINRA) arbitrators ordered Trustmont to pay Grimes more than $1 million in damages, according to the award.
Grimes alleged that Trustmont breached fiduciary duty, committing fraud and negligence in a case related to two 1035 annuity exchanges and a private real estate investment trust.
Grimes demanded damages of approximately $500,000, while Trustmont reportedly denied all the allegations.
According to the award, Trustmont was ordered to pay Grimes $848,002.31 in compensatory damages and $100,000 in punitive damages. The firm is also liable for costs and attorney fees. The total amount awarded to Grimes is $1,046,098.31.
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Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
FINRA is an independent, non-governmental regulator for all securities firms doing business with the public in the United States. Their mission is to protect investors by regulating brokers and brokerage firms and monitoring trading on U.S. stock markets.
This information is publicly available and provided to you by The White Law Group. If you are concerned about investments you made with Trustmont Financial Group, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States.
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