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.
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.