Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on September 6, 2018 indicate that an investors has won an award exceeding $1,000,000 in an arbitration claim against Trustmont Financial Group.
Filed in February 2017, the investor’s claim alleged Trustmont Financial Group violated the Florida Securities and Investor Protection Act, breached its fiduciary duty, committed fraud, failed in its supervisory duties, recommended unsuitable products, acted negligently, negligently misrepresented material facts, omitted material facts, breached contract, and was negligent in its supervisory duties in connection to investments in two 1035 annuity exchanges and a private real estate investment trust, or REIT.
Established in Pennsylvania in 1986, Trustmont Financial Group is headquartered in Greensburg, Pennsylvania and registered with 51 US states and territories. Its BrokerCheck report lists this customer complaint and three regulatory events on the firm’s disclosure records.
In 2016 FINRA sanctioned the firm in connection to allegations, among others it failed to retain certain representatives’ business emails and to inspect and register certain “branch and non-branch locations.” The firm was censured and issued a fine of $100,000.
In 2013 the Pennsylvania Department of Banking and Securities sanctioned the firm in connection to allegations it “failed to reasonably supervise” and agent whose alleged outside business activity constituted the basis of a sanction by state regulators. The firm was issued a fine of $125,000.
In 2011 FINRA sanctioned the firm in connection to allegations it “failed to develop and enforce” written supervisory procedures that were adequately designed to attain compliance with securities rules concerning “the review of electronic correspondence.” The firm was censured and issued a fine of $30,000.
The February 2017 complaint was heard by a FINRA arbitration panel, which found Trustmont Financial Group liable for compensatory damages totaling $848,002.31 for the following causes of action: unsuitability, failure to supervise, misrepresentation. The panel also found Trustmont Financial Group liable for $100,000 in punitive damages, as well as various costs exceeding $98,000.