Finra arbitrators order Pennsylvania brokerage to pay client $1 million in damages

Finra arbitrators order Pennsylvania brokerage to pay client $1 million in damages
James E. Grimes accused Trustmont Financial of breaching fiduciary duty in a case related to two annuity exchanges and a private REIT.
AUG 23, 2018

Financial Industry Regulatory Authority Inc. arbitrators ordered Pennsylvania-based Trustmont Financial Group Inc. to pay a client more than $1 million in damages. James E. Grimes accused Trustmont, headquartered in Greensburg, Penn., of breaching fiduciary duty, committing fraud and negligence in a case related to two 1035 annuity exchanges and a private real estate investment trust. Mr. Grimes demanded damages of approximately $500,000. Trustmont denied all the allegations. (More: Finra arbitrator awards $1.5 million in damages to oil and gas investor) A representative from Trustmont was not immediately available for comment. Trustmont was ordered to pay Mr. Grimes $848,002.31 in compensatory damages and $100,000 in punitive damages. The firm is also liable for costs and attorney fees of $15,596 and $82,500, respectively. The sum of all relief awarded is $1,046,098.31.

Latest News

Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface
Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface

Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.

Former Citigroup, Ameriprise advisor stole $3.5 million from client: report
Former Citigroup, Ameriprise advisor stole $3.5 million from client: report

FINRA barred the advisor, Sung Moo Cho, last month.

MetLife poll finds high-value home sales are becoming tax-planning events
MetLife poll finds high-value home sales are becoming tax-planning events

A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.